Teradyne (NASDAQ:TER) Stock Jumps 3.2% – Should You Buy?

Teradyne, Inc. (NASDAQ:TER) shares traded up 3.2% during trading on Tuesday. The company traded as high as $274.10 and last traded at $269.35. 3,353,779 shares changed hands during trading, a decline of 6% from the average daily volume of 3,567,385 shares. The stock had previously closed at $261.01.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s robotics business reaching profitability may broaden its AI-related growth profile and add another contributor to earnings. Teradyne stock: Robotics profitability broadens AI growth profile
• Positive Sentiment: Zacks cited Teradyne’s growth attributes as a potential source of market outperformance, supporting an optimistic growth outlook. Teradyne is an Incredible Growth Stock: 3 Reasons Why
• Positive Sentiment: Northland Securities lifted its Q3 EPS estimates. Separately, Zacks noted that analysts’ upward earnings-estimate revisions and oversold technical readings could support a rebound after the recent decline. Q3 EPS Estimates for Teradyne Lifted by Northland Securities Why You Should Buy the Dip in Teradyne
• Neutral Sentiment: Coverage comparing Teradyne with Flex as a value stock did not provide a clear conclusion in the available summaries, so it offers little specific direction for TER. FLEX or TER: Which Is the Better Value Stock Right Now?
• Negative Sentiment: Zacks reported that Teradyne had fallen sharply over the prior four weeks. Although the article described the shares as oversold, the steep decline points to recent selling pressure and potential volatility. Why You Should Buy the Dip in Teradyne

Wall Street Analyst Weigh In

TER has been the subject of a number of recent research reports. The Goldman Sachs Group set a $440.00 target price on Teradyne in a research note on Wednesday, October 28th. Robert W. Baird downgraded shares of Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price objective for the company. in a research report on Friday, August 21st. Cantor Fitzgerald reiterated an “overweight” rating and set a $550.00 price objective on shares of Teradyne in a research note on Wednesday, July 29th. UBS Group reduced their target price on shares of Teradyne from $485.00 to $430.00 and set a “buy” rating on the stock in a research report on Thursday, October 29th. Finally, Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $405.86.

Teradyne Trading Up 3.2%

The business has a 50 day simple moving average of $361.91 and a two-hundred day simple moving average of $348.56. The stock has a market cap of $42.11 billion, a price-to-earnings ratio of 30.92, a price-to-earnings-growth ratio of 0.63 and a beta of 1.75.

Teradyne (NASDAQ:TER) last announced its earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.20. The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. Teradyne’s quarterly revenue was up 69.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.85 EPS. Research analysts anticipate that Teradyne, Inc. will post 9.36 EPS for the current fiscal year.

Teradyne Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Friday, September 4th. Teradyne’s payout ratio is 5.97%.

Insider Transactions at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the company’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total value of $1,365,120.00. Following the sale, the chief executive officer directly owned 104,495 shares of the company’s stock, valued at $35,662,053.60. This represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,000 shares of company stock valued at $4,416,440 over the last 90 days. Corporate insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

Several hedge funds and other institutional investors have recently modified their holdings of TER. Next Level Wealth Planning LLC bought a new position in shares of Teradyne during the third quarter worth about $27,000. Community Financial Services Group LLC bought a new stake in Teradyne in the second quarter valued at about $29,000. McIlrath & Eck LLC acquired a new stake in Teradyne during the first quarter valued at approximately $30,000. Elevation Wealth Partners LLC raised its stake in Teradyne by 1,320.0% during the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after buying an additional 66 shares in the last quarter. Finally, Signature Equity Partners LLC lifted its holdings in Teradyne by 97.7% during the 3rd quarter. Signature Equity Partners LLC now owns 87 shares of the company’s stock worth $35,000 after buying an additional 43 shares during the last quarter. Institutional investors own 99.77% of the company’s stock.

Teradyne Company Profile

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.