Teradyne (NASDAQ:TER) Shares Gap Down – Time to Sell?

Shares of Teradyne, Inc. (NASDAQ:TER) gapped down before the market opened on Wednesday. The stock had previously closed at $323.68, but opened at $302.68. Teradyne shares last traded at $307.5310, with a volume of 991,672 shares.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Third-quarter results exceeded expectations: Teradyne reported adjusted earnings of $2.29 per share versus the $2.04–$2.09 consensus range, while revenue rose 69.8% year over year to approximately $1.31 billion, above estimates near $1.27 billion. Net income increased to $342.4 million from $119.6 million a year earlier. Teradyne Third-Quarter Earnings Results
• Positive Sentiment: Fourth-quarter outlook was better than expected: Management projected revenue of roughly $1.3 billion at the midpoint, about 1.8% above analyst expectations. The outlook reinforces demand for Teradyne’s semiconductor testing equipment, supported in part by artificial-intelligence-related chip investment. Teradyne Fourth-Quarter Guidance
• Positive Sentiment: Several market commentators continue to view Teradyne’s accelerating automated test equipment growth and exposure to AI-related semiconductor demand as long-term catalysts. An investment in FormFactor could also broaden strategic exposure within the semiconductor supply chain. Teradyne Growth Analysis
• Neutral Sentiment: UBS maintained its $485 price target, while reports that exchange-traded funds were buying TER provided some institutional-demand support. However, these developments were overshadowed by the immediate earnings reaction. UBS Maintains Teradyne Target
• Negative Sentiment: The stock declined despite the earnings beat. Investors may have expected an even stronger outlook after Teradyne’s sharp run-up, making the modest guidance outperformance vulnerable to profit-taking. Shares also trade at a relatively high valuation, with a reported price-to-earnings ratio of 44.4 and the stock below its 50-day and 200-day moving averages.
• Negative Sentiment: Argus lowered its price target to $382, signaling more limited near-term upside and adding to pressure on the shares. Argus Lowers Teradyne Price Target

Analysts Set New Price Targets

A number of brokerages recently weighed in on TER. Weiss Ratings upgraded shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, September 29th. Susquehanna increased their price target on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. Evercore reissued an “outperform” rating and issued a $420.00 price objective on shares of Teradyne in a research report on Thursday, July 30th. Robert W. Baird restated a “neutral” rating and set a $420.00 price target on shares of Teradyne in a research note on Friday, August 21st. Finally, Wall Street Zen raised shares of Teradyne from a “hold” rating to a “buy” rating in a research report on Saturday. Eleven investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $412.64.

Teradyne Price Performance

The firm has a fifty day simple moving average of $369.87 and a 200 day simple moving average of $347.27. The company has a market capitalization of $48.15 billion, a price-to-earnings ratio of 42.05 and a beta of 1.75.

Teradyne (NASDAQ:TER) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $2.29 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.20. The business had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the prior year, the business posted $0.85 earnings per share. The business’s quarterly revenue was up 69.8% on a year-over-year basis. Research analysts predict that Teradyne, Inc. will post 9.11 EPS for the current year.

Teradyne Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders 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 yield of 0.2%. Teradyne’s payout ratio is 7.13%.

Insiders Place Their Bets

In other news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the completion of the sale, the chief executive officer owned 104,495 shares in the company, valued at $35,662,053.60. This trade represents a 3.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 12,000 shares of company stock valued at $4,416,440. Insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Community Financial Services Group LLC acquired a new position in shares of Teradyne in the second quarter worth $29,000. McIlrath & Eck LLC acquired a new stake in Teradyne during the 1st quarter worth $30,000. Elevation Wealth Partners LLC boosted its position in shares of 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 during the period. Mcdonald Partners LLC purchased a new position in shares of Teradyne during the second quarter worth approximately $36,000. Finally, Balance Wealth Partners LLC purchased a new position in shares of Teradyne in the 3rd quarter valued at approximately $39,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.

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.