Teradyne (NASDAQ:TER) Reaches New 1-Year High – Time to Buy?

Teradyne, Inc. (NASDAQ:TER)’s share price reached a new 52-week high during trading on Monday . The company traded as high as $448.81 and last traded at $453.1660, with a volume of 33417 shares. The stock had previously closed at $437.92.

Wall Street Analyst Weigh In

A number of research firms have weighed in on TER. Cantor Fitzgerald increased their target price on shares of Teradyne from $330.00 to $400.00 and gave the company an “overweight” rating in a research report on Thursday, April 9th. Weiss Ratings raised shares of Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, May 4th. The Goldman Sachs Group lifted their target price on shares of Teradyne from $300.00 to $350.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. UBS Group upped their price target 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. Finally, Evercore set a $370.00 price target on Teradyne in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $339.80.

Teradyne Price Performance

The stock has a market cap of $69.47 billion, a price-to-earnings ratio of 82.24, a price-to-earnings-growth ratio of 1.80 and a beta of 1.79. The firm’s fifty day moving average price is $374.49 and its two-hundred day moving average price is $300.85.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating the consensus estimate of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same period last year, the business posted $0.75 EPS. The firm’s revenue for the quarter was up 87.0% compared to the same quarter last year. On average, equities research analysts anticipate that Teradyne, Inc. will post 7.09 earnings per share for the current year.

Teradyne Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a dividend of $0.13 per share. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Thursday, May 21st. Teradyne’s dividend payout ratio is presently 9.63%.

Insider Transactions at Teradyne

In related news, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $345.37, for a total value of $348,132.96. Following the transaction, the insider directly owned 15,066 shares in the company, valued at $5,203,344.42. This trade represents a 6.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 8,597 shares of Teradyne stock in a transaction on Friday, May 15th. The shares were sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the completion of the sale, the chief executive officer directly owned 124,470 shares of the company’s stock, valued at approximately $42,192,840.60. The trade was a 6.46% 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 14,941 shares of company stock valued at $5,444,112 over the last ninety days. 0.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of Teradyne during the fourth quarter valued at approximately $398,777,000. Wellington Management Group LLP lifted its stake in Teradyne by 13,949.4% during the 3rd quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock valued at $280,357,000 after acquiring an additional 2,022,389 shares in the last quarter. Aspex Management HK Ltd purchased a new position in Teradyne during the 4th quarter worth $199,723,000. Corient Private Wealth LLC grew its stake in shares of Teradyne by 2,189.2% in the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after acquiring an additional 1,028,916 shares in the last quarter. Finally, Alkeon Capital Management LLC raised its holdings in shares of Teradyne by 48.6% in the third quarter. Alkeon Capital Management LLC now owns 2,872,910 shares of the company’s stock valued at $395,427,000 after purchasing an additional 940,000 shares during the last quarter. 99.77% of the stock is currently owned by institutional investors and hedge funds.

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.