Teradyne (NASDAQ:TER) Shares Gap Up – Should You Buy?

Shares of Teradyne, Inc. (NASDAQ:TER) gapped up before the market opened on Wednesday . The stock had previously closed at $409.35, but opened at $429.23. Teradyne shares last traded at $429.27, with a volume of 338,630 shares trading hands.

Analyst Upgrades and Downgrades

TER has been the subject of a number of recent research reports. Susquehanna boosted their price objective on shares of Teradyne from $335.00 to $415.00 and gave the company a “positive” rating in a research report on Thursday, April 9th. UBS Group boosted their price objective on shares of Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Citigroup boosted their price objective on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. The Goldman Sachs Group boosted their price objective on shares of Teradyne from $300.00 to $350.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Finally, Robert W. Baird set a $350.00 price objective on shares of Teradyne in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $339.80.

Teradyne Trading Up 3.5%

The business’s 50 day moving average is $368.69 and its two-hundred day moving average is $295.62. The company has a market cap of $66.33 billion, a PE ratio of 78.54, a PEG ratio of 1.78 and a beta of 1.79.

Teradyne (NASDAQ:TER) last released its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating analysts’ consensus estimates of $2.11 by $0.45. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. Teradyne’s revenue for the quarter was up 87.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.75 EPS. As a group, equities research analysts predict that Teradyne, Inc. will post 7.09 EPS for the current fiscal year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date was Thursday, May 21st. This is an increase from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio is presently 9.63%.

Insiders Place Their Bets

In other Teradyne news, insider Shannon John Poulin sold 656 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the sale, the insider owned 15,722 shares in the company, valued at $5,581,310. The trade was a 4.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Stephen Smith sold 4,000 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the completion of the sale, the chief executive officer owned 120,470 shares in the company, valued at approximately $50,962,424.10. The trade was a 3.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,941 shares of company stock worth $5,444,112 in the last 90 days. 0.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Teradyne

Several hedge funds have recently bought and sold shares of TER. Caitong International Asset Management Co. Ltd purchased a new stake in Teradyne in the 4th quarter worth $28,000. McIlrath & Eck LLC purchased a new stake in shares of Teradyne during the 1st quarter valued at about $30,000. Davidson Capital Management Inc. purchased a new stake in shares of Teradyne during the 3rd quarter valued at about $31,000. CYBER HORNET ETFs LLC purchased a new stake in shares of Teradyne during the 2nd quarter valued at about $35,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Teradyne during the 4th quarter valued at about $37,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.

About Teradyne

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.