Teradyne (NASDAQ:TER) Stock Rating Cut to Hold at Zacks Research

Zacks Research cut shares of Teradyne (NASDAQ:TER) from a strong-buy rating to a hold rating in a research note issued to investors on Monday,Zacks reports.

A number of other equities analysts have also weighed in on TER. UBS Group upped 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. The Goldman Sachs Group restated a “buy” rating and set a $465.00 price objective on shares of Teradyne in a research report on Tuesday, July 28th. Susquehanna lifted their target price on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a research note on Wednesday, July 29th. Finally, Morgan Stanley boosted their price objective on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Ten equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $396.80.

Teradyne Stock Up 0.4%

Shares of TER opened at $403.02 on Monday. The business has a 50-day simple moving average of $371.63 and a two-hundred day simple moving average of $365.62. The stock has a market cap of $63.01 billion, a price-to-earnings ratio of 55.28, a PEG ratio of 0.81 and a beta of 1.78. Teradyne has a 52 week low of $131.75 and a 52 week high of $487.91.

Teradyne (NASDAQ:TER) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating 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 firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the firm earned $0.57 EPS. The business’s quarterly revenue was up 103.9% on a year-over-year basis. On average, equities analysts anticipate that Teradyne will post 9.11 earnings per share for the current fiscal year.

Teradyne Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders 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 dividend payout ratio is currently 7.13%.

Insider Activity

In other news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total value of $1,351,320.00. Following the completion of the transaction, the chief executive officer owned 108,495 shares in the company, valued at approximately $36,652,865.85. The trade was a 3.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by insiders.

Institutional Trading of Teradyne

A number of institutional investors have recently bought and sold shares of TER. BlackRock Inc. bought a new position in Teradyne during the second quarter valued at $9,404,408,000. Andar Capital Management HK Ltd bought a new stake in shares of Teradyne in the 2nd quarter worth about $37,800,000. Bank of America Corp DE purchased a new position in shares of Teradyne during the 2nd quarter worth about $842,822,000. Legal & General Group Plc purchased a new position in shares of Teradyne during the 2nd quarter worth about $656,058,000. Finally, Aspex Management HK Ltd bought a new position in Teradyne during the 4th quarter valued at about $199,723,000. 99.77% of the stock is currently owned by institutional investors.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced the Magnum E2, a high-speed memory test system designed for next-generation DRAM and flash devices used in AI data centers. Its support for faster interfaces and greater parallelism could create growth opportunities as memory-test complexity increases. Teradyne Announces Magnum E2 to Address Next-Generation Memory Test Demands Driven by AI and High-Performance Computing
• Positive Sentiment: The Magnum E2 launch adds to Teradyne’s recent AI-related product momentum, including new UltraFLEXplus instruments for data-center semiconductor testing, the Iris 100 microLED optical tester, and a semiconductor testing partnership and expansion in India. Teradyne Debuts Magnum E2 for AI Memory Testing
• Positive Sentiment: Investors are also carrying forward the impact of Teradyne’s strong second-quarter results, when revenue reached $1.33 billion and earnings per share of $2.47 exceeded consensus by $0.38. Revenue more than doubled year over year, supporting optimism about the company’s earnings trajectory. Teradyne Stock Gained After a Q2 Beat
• Neutral Sentiment: After a substantial rally, valuation remains a key consideration. Analysts and commentators question whether Teradyne’s record results and AI expansion are fully reflected in the share price, which could limit further gains unless execution and growth remain strong. Is Teradyne Fully Valued on Its Latest Semiconductor and Robotics Expansion?
• Negative Sentiment: A Teradyne director sold 400 shares after the stock had risen more than 200% over the past year. The transaction is relatively small and does not necessarily indicate a change in the company’s outlook, but it may add modest pressure after the sharp run-up. A Teradyne Director Sells 400 Shares

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.