Teradyne (NASDAQ:TER) Stock Price Down 3.2% – Should You Sell?

Shares of Teradyne, Inc. (NASDAQ:TER) traded down 3.2% during trading on Tuesday. The stock traded as low as $427.04 and last traded at $430.32. Approximately 1,993,970 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 3,556,697 shares. The stock had previously closed at $444.53.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced the Titan HP platform, which adds burn-in capabilities for advanced AI data-center devices. The product targets a growing need for reliability testing as AI-chip complexity and data-center demand expand. Teradyne Introduces Titan HP Platform
• Positive Sentiment: The company’s Magnum E2 platform is designed to test advanced DRAM and high-speed NAND flash, supporting Teradyne’s exposure to memory and AI-related semiconductor investment. Teradyne Magnum E2
• Positive Sentiment: Teradyne and Bright Machines plan to combine Teradyne’s robotics and test technologies with Bright Machines’ software-defined manufacturing platform, potentially creating new factory-automation opportunities. Teradyne and Bright Machines Collaboration
• Neutral Sentiment: Teradyne is scheduled to report third-quarter results soon. Analysts anticipate strong triple-digit year-over-year EPS growth, raising expectations for the release and guidance. Teradyne Earnings Preview
• Negative Sentiment: Teradyne’s shares declined ahead of earnings as investors appeared to reduce risk or lock in gains before the results, increasing sensitivity to any earnings or outlook disappointment. Teradyne Stock Falls Ahead of Earnings
• Negative Sentiment: Teradyne underperformed competitors while several semiconductor and testing stocks also traded lower, indicating sector-wide risk aversion rather than a company-specific issue alone. Semiconductor Stocks Trade Down
• Negative Sentiment: An investor report questioned Teradyne’s competitive position despite strong AI demand, highlighting concerns about competition and execution in semiconductor test. Report on Teradyne Competition
• Negative Sentiment: Cathie Wood’s ARK-related trading reportedly included selling Teradyne shares, which may have added modest sentiment pressure, although the transaction is not a fundamental earnings development. Cathie Wood Sells Teradyne

Wall Street Analyst Weigh In

A number of research firms recently issued reports on TER. Weiss Ratings upgraded shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 29th. Susquehanna lifted their price objective on Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Bank of America boosted their price objective on Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Morgan Stanley raised their target price on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Finally, UBS Group lifted their price target on Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a research report on Monday, July 20th. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $396.80.

Teradyne Stock Performance

The firm has a market capitalization of $61.66 billion, a PE ratio of 54.03, a price-to-earnings-growth ratio of 0.87 and a beta of 1.75. The firm’s 50 day moving average price is $381.31 and its 200-day moving average price is $371.11.

Teradyne (NASDAQ:TER) last released its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share 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 analysts’ expectations of $1.22 billion. During the same quarter in the prior year, the firm posted $0.57 EPS. Teradyne’s quarterly revenue was up 103.9% compared to the same quarter last year. On average, equities research analysts expect that Teradyne, Inc. will post 9.11 earnings per share for the current fiscal year.

Teradyne Announces Dividend

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

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $337.83, for a total value of $1,351,320.00. Following the transaction, the chief executive officer directly owned 108,495 shares of the company’s stock, valued at approximately $36,652,865.85. This trade represents a 3.56% decrease in their position. The sale was disclosed in a filing with the SEC, 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 currently owned by company insiders.

Hedge Funds Weigh In On Teradyne

Hedge funds have recently made changes to their positions in the company. Community Financial Services Group LLC purchased a new stake in shares of Teradyne during the second quarter worth approximately $29,000. Elevation Wealth Partners LLC lifted its holdings in Teradyne by 1,320.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after purchasing an additional 66 shares in the last quarter. Mcdonald Partners LLC acquired a new stake in Teradyne during the 2nd quarter worth $36,000. Hilltop National Bank purchased a new stake in shares of Teradyne during the second quarter worth $41,000. Finally, McIlrath & Eck LLC acquired a new stake in shares of Teradyne in the first quarter valued at about $30,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

Teradyne Company Profile

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.