Teradyne (NASDAQ:TER) Shares Climb 8% – Should You Buy?

Shares of Teradyne, Inc. (NASDAQ:TER) were up 8% on Friday. The company traded as high as $451.86 and last traded at $449.04. Approximately 3,356,567 shares changed hands during mid-day trading, a decline of 6% from the average session volume of 3,574,635 shares. The stock had previously closed at $415.79.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TER. Morgan Stanley raised their target price on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Robert W. Baird reaffirmed a “neutral” rating and issued a $420.00 target price on shares of Teradyne in a research report on Friday, August 21st. UBS Group increased their price target on shares of Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. Weiss Ratings upgraded shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. Finally, Evercore reiterated an “outperform” rating and set a $420.00 target price on shares of Teradyne in a report on Thursday, July 30th. Eleven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $396.80.

Teradyne Trading Up 8.0%

The firm has a market capitalization of $70.20 billion, a price-to-earnings ratio of 61.60, a price-to-earnings-growth ratio of 0.81 and a beta of 1.75. The stock’s fifty day moving average price is $373.10 and its two-hundred day moving average price is $367.34.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the business earned $0.57 EPS. Teradyne’s revenue for the quarter was up 103.9% on a year-over-year basis. Analysts anticipate that Teradyne, Inc. will post 9.11 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Friday, September 4th. Teradyne’s payout ratio is presently 7.13%.

Insiders Place Their Bets

In other news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the completion of the transaction, the chief executive officer directly owned 108,495 shares of the company’s stock, valued at $36,652,865.85. This trade represents a 3.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Teradyne in the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd purchased a new stake in Teradyne during the 2nd quarter worth $37,800,000. Bank of America Corp DE purchased a new stake in Teradyne during the 2nd quarter worth $842,822,000. Legal & General Group Plc acquired a new stake in Teradyne in the 2nd quarter valued at $656,058,000. Finally, Aspex Management HK Ltd acquired a new stake in Teradyne in the 4th quarter valued at $199,723,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

About Teradyne

Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.