Teradyne (NASDAQ:TER) Stock Price Down 7.8% Following Insider Selling

Shares of Teradyne, Inc. (NASDAQ:TER) dropped 7.8% during trading on Tuesday following insider selling activity. The company traded as low as $406.65 and last traded at $408.3810. 471,232 shares traded hands during trading, a decline of 88% from the average session volume of 3,786,390 shares. The stock had previously closed at $443.14.

Specifically, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the transaction, the chief executive officer owned 112,495 shares in the company, valued at approximately $47,810,375. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on TER shares. The Goldman Sachs Group reissued a “buy” rating and set a $465.00 target price on shares of Teradyne in a research report on Tuesday, July 28th. UBS Group lifted their price objective on Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Citigroup boosted their price objective on Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Evercore restated an “outperform” rating and set a $420.00 target price on shares of Teradyne in a research note on Thursday, July 30th. Finally, Weiss Ratings raised Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $396.80.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s latest quarterly results remain a fundamental support: revenue rose 103.9% year over year to $1.33 billion, while adjusted earnings of $2.47 per share exceeded the $2.09 analyst consensus. Management also provided solid forward guidance, reinforcing expectations for continued demand for semiconductor test equipment tied to AI infrastructure. Chip Equipment Stocks Selloff
• Positive Sentiment: Institutional interest is mixed but generally constructive, with 815 investors adding shares during the latest quarter versus 638 reducing positions. JPMorgan, Invesco and BlackRock were among the largest reported buyers, while Teradyne maintains a predominantly positive analyst outlook and a median recent price target of $443. Teradyne Selloff Analysis
• Neutral Sentiment: CEO Gregory Smith sold 4,000 shares for approximately $1.7 million, and director Marilyn Matz sold 1,200 shares at $425. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, reducing their usefulness as signals about management’s current view of the company. Teradyne Insider Transactions
• Negative Sentiment: The immediate pressure appears sector-wide rather than company-specific. Semiconductor test-equipment stocks, including Teradyne, Aehr Test Systems and FormFactor, are being sold as investors reduce exposure to high-growth AI winners. No new Teradyne earnings warning or adverse company announcement was identified. Semiconductor Test Equipment Selloff
• Negative Sentiment: Higher Treasury yields—particularly a 30-year yield at a multiyear high—are pressuring richly valued technology stocks. Teradyne’s elevated valuation following a sharp AI-driven rally makes it vulnerable to profit-taking and risk-off trading. Amkor, Teradyne and Kulicke and Soffa Shares Falling

Teradyne Stock Down 6.1%

The stock’s 50-day moving average price is $386.98 and its 200 day moving average price is $352.63. The firm has a market cap of $59.35 billion, a price-to-earnings ratio of 52.08, a price-to-earnings-growth ratio of 0.82 and a beta of 1.78.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company’s quarterly revenue was up 103.9% on a year-over-year basis. During the same quarter last year, the company earned $0.57 EPS. On average, research analysts predict that Teradyne, Inc. will post 9.1 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Community Financial Services Group LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at approximately $29,000. Elevation Wealth Partners LLC lifted its position in shares of Teradyne by 1,320.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock worth $34,000 after buying an additional 66 shares during the period. Mcdonald Partners LLC acquired a new stake in Teradyne in the 2nd quarter valued at $36,000. Hilltop National Bank acquired a new stake in Teradyne in the 2nd quarter valued at $41,000. Finally, McIlrath & Eck LLC bought a new stake in Teradyne in the first quarter valued at $30,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

Teradyne Company Profile

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.