Teradyne (NASDAQ:TER) Shares Gap Up – Should You Buy?

Teradyne, Inc. (NASDAQ:TER)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $322.36, but opened at $335.22. Teradyne shares last traded at $344.1390, with a volume of 417,588 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have commented on TER shares. Bank of America upped their price objective on shares of Teradyne from $365.00 to $525.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Citigroup lifted their target price on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a report on Thursday, April 30th. UBS Group reiterated a “buy” rating on shares of Teradyne in a research note on Monday. Weiss Ratings raised shares of Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, May 4th. Finally, Evercore set a $370.00 price target on shares of Teradyne in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $390.53.

Teradyne Stock Performance

The stock’s fifty day moving average price is $382.06 and its 200-day moving average price is $328.08. The firm has a market cap of $53.36 billion, a PE ratio of 63.01, a P/E/G ratio of 0.93 and a beta of 1.74.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating the consensus estimate of $2.11 by $0.45. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.20 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The business’s revenue for the quarter was up 87.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.75 earnings per share. Sell-side analysts forecast that Teradyne, Inc. will post 7.2 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s payout ratio is 9.63%.

Insider Activity

In related news, CEO Gregory Stephen Smith sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $423.03, for a total value of $1,692,120.00. Following the sale, the chief executive officer owned 120,470 shares in the company, valued at $50,962,424.10. This represents a 3.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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 the firm’s stock in a transaction that occurred 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 completion of the transaction, the vice president directly owned 7,665 shares of the company’s stock, valued at $2,894,304. The trade was a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 14,941 shares of company stock worth $5,444,112. Company insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Institutional investors have recently bought and sold shares of the company. State Street Corp raised its stake in shares of Teradyne by 0.9% during the 4th quarter. State Street Corp now owns 7,078,635 shares of the company’s stock worth $1,370,141,000 after buying an additional 60,986 shares during the last quarter. Ameriprise Financial Inc. boosted its position in shares of Teradyne by 3.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company’s stock worth $442,413,000 after buying an additional 143,058 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Teradyne by 18.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock valued at $813,640,000 after acquiring an additional 659,273 shares during the last quarter. Invesco Ltd. grew its stake in Teradyne by 3.5% in the 3rd 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 during the last quarter. Finally, Morgan Stanley increased its holdings in Teradyne by 1.9% during the 4th quarter. Morgan Stanley now owns 2,442,014 shares of the company’s stock valued at $472,677,000 after acquiring an additional 45,089 shares in the last quarter. 99.77% of the stock is currently 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.