Teradyne (NASDAQ:TER) Upgraded to Buy at Zacks Investment Research


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Zacks Investment Research upgraded shares of Teradyne (NASDAQ:TER) from a hold rating to a buy rating in a research note released on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $144.00 price objective on the stock.

According to Zacks, “Teradyne is driven by strength in Semiconductor Test and System Test businesses. It continues to benefit from growing memory market exposure, robust Test demand and a strong product lineup. The company’s lean cost structure and strong balance sheet remain positives. Additionally, management is optimistic about the Universal Robots acquisition and continuous design wins. We believe that the company has significant growth opportunities in the high-growth wireless test market in the long haul. Notably, the stock has outperformed the industry it belongs to over a year. However, Teradyne’s sluggish HDD business due to a slowdown in the PC market poses a major concern. Further, weakness in the mobility test market also remains a concern.”

Several other research analysts have also weighed in on TER. The Goldman Sachs Group raised their price objective on shares of Teradyne from $107.00 to $128.00 and gave the stock a buy rating in a report on Monday, December 14th. Robert W. Baird raised their price objective on shares of Teradyne from $90.00 to $105.00 and gave the stock an outperform rating in a report on Thursday, October 22nd. Craig Hallum raised their price objective on shares of Teradyne from $76.00 to $87.00 and gave the stock a hold rating in a report on Thursday, October 22nd. Morgan Stanley began coverage on shares of Teradyne in a report on Thursday, December 10th. They set an overweight rating and a $138.00 price objective for the company. Finally, DA Davidson raised their price objective on shares of Teradyne from $90.00 to $100.00 in a report on Thursday, October 22nd. One analyst has rated the stock with a sell rating, six have given a hold rating and eleven have issued a buy rating to the company. Teradyne currently has a consensus rating of Buy and a consensus price target of $102.53.

TER traded up $1.84 during trading hours on Wednesday, reaching $137.86. 19,620 shares of the stock traded hands, compared to its average volume of 1,579,480. The firm’s fifty day simple moving average is $121.42 and its two-hundred day simple moving average is $103.63. The company has a market cap of $22.89 billion, a price-to-earnings ratio of 34.18, a PEG ratio of 1.34 and a beta of 1.27. Teradyne has a fifty-two week low of $42.87 and a fifty-two week high of $139.52. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.87 and a quick ratio of 2.59.

Teradyne (NASDAQ:TER) last released its quarterly earnings results on Tuesday, October 20th. The company reported $1.18 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.11 by $0.07. The business had revenue of $819.48 million during the quarter, compared to analyst estimates of $785.96 million. Teradyne had a net margin of 22.94% and a return on equity of 43.96%. On average, research analysts predict that Teradyne will post 3.87 earnings per share for the current year.

The company also recently announced a quarterly dividend, which was paid on Friday, December 18th. Investors of record on Wednesday, November 25th were given a $0.10 dividend. The ex-dividend date was Tuesday, November 24th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.29%. Teradyne’s dividend payout ratio is currently 13.99%.

In other Teradyne news, VP Walter G. Vahey sold 35,000 shares of the company’s stock in a transaction that occurred on Monday, December 28th. The stock was sold at an average price of $118.15, for a total transaction of $4,135,250.00. Following the sale, the vice president now directly owns 42,956 shares in the company, valued at $5,075,251.40. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Mark E. Jagiela sold 52,992 shares of the company’s stock in a transaction that occurred on Monday, December 28th. The shares were sold at an average price of $118.10, for a total value of $6,258,355.20. Following the sale, the chief executive officer now owns 334,931 shares in the company, valued at $39,555,351.10. The disclosure for this sale can be found here. Insiders sold 333,223 shares of company stock worth $33,513,928 over the last quarter. 0.62% of the stock is owned by company insiders.

Hedge funds have recently modified their holdings of the business. Los Angeles Capital Management & Equity Research Inc. grew its stake in shares of Teradyne by 66.8% during the third quarter. Los Angeles Capital Management & Equity Research Inc. now owns 1,569,841 shares of the company’s stock valued at $124,740,000 after buying an additional 628,841 shares during the last quarter. Polar Capital LLP increased its holdings in Teradyne by 58.2% during the 3rd quarter. Polar Capital LLP now owns 1,213,740 shares of the company’s stock worth $96,444,000 after purchasing an additional 446,380 shares during the period. Jupiter Asset Management Ltd. raised its position in Teradyne by 4,217.2% during the 3rd quarter. Jupiter Asset Management Ltd. now owns 447,567 shares of the company’s stock valued at $35,541,000 after purchasing an additional 437,200 shares in the last quarter. Voloridge Investment Management LLC raised its position in Teradyne by 156.5% during the 3rd quarter. Voloridge Investment Management LLC now owns 449,854 shares of the company’s stock valued at $35,745,000 after purchasing an additional 274,458 shares in the last quarter. Finally, Squarepoint Ops LLC raised its position in Teradyne by 532.4% during the 3rd quarter. Squarepoint Ops LLC now owns 304,379 shares of the company’s stock valued at $24,186,000 after purchasing an additional 256,248 shares in the last quarter. Institutional investors and hedge funds own 95.39% of the company’s stock.

About Teradyne

Teradyne, Inc designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic game, and other applications.

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