Teradyne (NASDAQ:TER) Shares Down 7.4% on Analyst Downgrade

Teradyne, Inc. (NASDAQ:TER)’s stock price dropped 7.4% on Friday after UBS Group lowered their price target on the stock from $485.00 to $430.00. UBS Group currently has a buy rating on the stock. Teradyne traded as low as $266.36 and last traded at $274.37. 8,613,421 shares traded hands during mid-day trading, an increase of 141% from the average daily volume of 3,567,167 shares. The stock had previously closed at $296.23.

Other research analysts have also issued reports about the stock. Wall Street Zen upgraded shares of Teradyne from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Zacks Research lowered shares of Teradyne from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Weiss Ratings raised shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, September 29th. Evercore reiterated an “outperform” rating and set a $420.00 price target on shares of Teradyne in a research report on Thursday, July 30th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a research note on Wednesday, July 29th. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Teradyne presently has an average rating of “Moderate Buy” and a consensus price target of $405.86.

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the transaction, the chief executive officer owned 104,495 shares in the company, valued at approximately $35,662,053.60. This represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,000 shares of company stock valued at $4,416,440 over the last 90 days. 0.19% of the stock is owned by corporate insiders.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s Q3 results and outlook highlighted robust AI exposure: revenue reached $1.31 billion, while management cited expanding compute programs, record memory-test revenue and capacity investments as drivers of potential 2027 growth. Teradyne Q3 Earnings Call Highlights AI Demand and 2027 Growth Plans
• Positive Sentiment: Northland Securities raised its FY2026 EPS forecast to $9.40 from $9.34, above the $9.17 consensus estimate. It also lifted its Q2 2027 estimate to $2.63 from $2.50, suggesting confidence in medium-term earnings momentum.
• Positive Sentiment: UBS maintained a “buy” rating despite reducing its price target to $430 from $485, leaving substantial implied upside based on the reference price. UBS Teradyne price-target update
• Neutral Sentiment: Analyst revisions were mixed: Northland lowered its Q1 2027 EPS forecast to $2.27 from $2.59 and trimmed Q4 2026 estimates slightly to $2.10 from $2.11, while raising full-year 2026 and Q2 2027 forecasts.
• Neutral Sentiment: Teradyne’s substantial multiyear rally and elevated valuation have increased investor focus on whether future AI-driven cash flows are already reflected in the stock price. Teradyne Stock May Be Above Fair Value Despite Record AI Demand
• Negative Sentiment: Put-option volume was unusually high, with 15,675 puts traded—about 101% above average—indicating increased hedging or bearish speculation.

Institutional Trading of Teradyne

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Provenance Wealth Advisors LLC purchased a new stake in Teradyne in the third quarter worth about $181,000. Associated Banc Corp purchased a new position in shares of Teradyne during the third quarter valued at approximately $216,000. Integrity Alliance LLC. boosted its position in shares of Teradyne by 81.5% in the 3rd quarter. Integrity Alliance LLC. now owns 1,292 shares of the company’s stock worth $518,000 after purchasing an additional 580 shares in the last quarter. IPG Investment Advisors LLC boosted its position in shares of Teradyne by 924.1% in the 3rd quarter. IPG Investment Advisors LLC now owns 5,530 shares of the company’s stock worth $2,217,000 after purchasing an additional 4,990 shares in the last quarter. Finally, Next Level Wealth Planning LLC purchased a new stake in shares of Teradyne in the 3rd quarter worth approximately $27,000. 99.77% of the stock is owned by hedge funds and other institutional investors.

Teradyne Stock Performance

The company has a market cap of $42.90 billion, a P/E ratio of 31.50, a price-to-earnings-growth ratio of 0.63 and a beta of 1.75. The stock has a 50-day moving average of $366.38 and a two-hundred day moving average of $348.15.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $2.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.20. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. The business had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the previous year, the business earned $0.85 earnings per share. The firm’s quarterly revenue was up 69.8% compared to the same quarter last year. Research analysts predict that Teradyne, Inc. will post 9.17 EPS for the current year.

Teradyne Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were paid a $0.13 dividend. The ex-dividend date was Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. Teradyne’s payout ratio is presently 7.13%.

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company’s product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.