Teradyne (NASDAQ:TER) Shares Gap Down – What’s Next?

Teradyne, Inc. (NASDAQ:TER)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $457.00, but opened at $410.17. Teradyne shares last traded at $414.4040, with a volume of 584,080 shares changing hands.

Wall Street Analysts Forecast Growth

TER has been the subject of several research reports. Cantor Fitzgerald upped their price objective on shares of Teradyne from $330.00 to $400.00 and gave the stock an “overweight” rating in a report on Thursday, April 9th. Robert W. Baird boosted their price target on shares of Teradyne from $350.00 to $446.00 and gave the company an “outperform” rating in a research report on Tuesday. UBS Group increased their price target on shares of Teradyne from $325.00 to $440.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Stifel Nicolaus raised their price objective on shares of Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a report on Tuesday, April 28th. Finally, Weiss Ratings upgraded shares of Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Teradyne presently has a consensus rating of “Moderate Buy” and an average target price of $363.87.

Teradyne Price Performance

The firm has a market cap of $64.44 billion, a PE ratio of 76.24, a price-to-earnings-growth ratio of 1.80 and a beta of 1.79. The firm has a 50-day simple moving average of $376.35 and a 200 day simple moving average of $302.73.

Teradyne (NASDAQ:TER) last released its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, topping analysts’ consensus estimates of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the prior year, the firm earned $0.75 EPS. The company’s revenue was up 87.0% compared to the same quarter last year. Sell-side analysts forecast that Teradyne, Inc. will post 7.09 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid 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 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne’s payout ratio is 9.63%.

Insider Activity

In related news, CEO Gregory Stephen Smith sold 8,597 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the completion of the transaction, the chief executive officer owned 124,470 shares of the company’s stock, valued at $42,192,840.60. This trade represents a 6.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the transaction, the vice president owned 7,665 shares of the company’s stock, valued at $2,894,304. The trade was a 8.15% 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. Over the last ninety days, insiders sold 14,941 shares of company stock worth $5,444,112. Insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently modified their holdings of the stock. State Street Corp raised its position in shares of Teradyne by 0.9% in the 4th quarter. State Street Corp now owns 7,078,635 shares of the company’s stock worth $1,370,141,000 after purchasing an additional 60,986 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in Teradyne by 6.8% in the third quarter. Ameriprise Financial Inc. now owns 5,256,857 shares of the company’s stock worth $723,600,000 after buying an additional 336,757 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Teradyne by 18.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock worth $813,640,000 after buying an additional 659,273 shares in the last quarter. Invesco Ltd. increased its position in shares of Teradyne by 3.5% during the third quarter. Invesco Ltd. now owns 2,959,330 shares of the company’s stock valued at $407,322,000 after acquiring an additional 99,864 shares in the last quarter. Finally, Alkeon Capital Management LLC raised its holdings in Teradyne by 48.6% in the 3rd quarter. Alkeon Capital Management LLC now owns 2,872,910 shares of the company’s stock worth $395,427,000 after acquiring an additional 940,000 shares during the last quarter. 99.77% of the stock is owned by hedge funds and other institutional investors.

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.