Teradyne (NASDAQ:TER) Shares Down 4.9% – Here’s Why

Teradyne, Inc. (NASDAQ:TER)’s share price was down 4.9% during mid-day trading on Monday. The stock traded as low as $257.84 and last traded at $261.01. 5,170,952 shares traded hands during mid-day trading, an increase of 45% from the average session volume of 3,562,727 shares. The stock had previously closed at $274.37.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s robotics business reportedly reached profitability, an important milestone that could improve confidence in the company’s long-term growth and margins. Teradyne stock gains as robotics reaches profitability
• Positive Sentiment: Northland Securities raised its third-quarter EPS estimate, suggesting analysts see potential for Teradyne to outperform prior expectations. Q3 EPS Estimates for Teradyne Lifted by Northland Securities
• Positive Sentiment: A Zacks analysis said TER has entered technically oversold territory after falling 38.9% in four weeks. The article also cited broad upward revisions to earnings estimates, which could support a rebound if selling pressure eases. Down 38.9% in 4 Weeks, Here’s Why You Should You Buy the Dip in Teradyne
• Neutral Sentiment: Teradyne appeared on a list of robotics stocks to watch, keeping the company on investors’ radar but providing limited new information about its valuation or outlook. Robotics Stocks To Watch Now
• Negative Sentiment: An analyst downgrade has contributed to selling pressure and raised concerns about Teradyne’s near-term valuation or growth prospects. Teradyne Stock Falls Following Analyst Downgrade
• Negative Sentiment: Unusually high trading in TER put options signals that some traders are positioning for, or hedging against, additional downside. Stock Traders Purchase High Volume of Teradyne Put Options

Wall Street Analysts Forecast Growth

A number of brokerages have commented on TER. Cantor Fitzgerald restated an “overweight” rating and issued a $550.00 target price on shares of Teradyne in a research note on Wednesday, July 29th. UBS Group decreased their price target on shares of Teradyne from $485.00 to $430.00 and set a “buy” rating for the company in a research note on Thursday. Wall Street Zen upgraded Teradyne from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Zacks Research cut Teradyne from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Finally, Weiss Ratings raised Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, September 29th. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $405.86.

Teradyne Stock Down 4.9%

The stock’s 50 day moving average is $364.20 and its two-hundred day moving average is $348.40. The company has a market capitalization of $40.81 billion, a PE ratio of 29.97, a price-to-earnings-growth ratio of 0.54 and a beta of 1.73.

Teradyne (NASDAQ:TER) last issued its earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.20. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The company had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the prior year, the business earned $0.85 EPS. The firm’s quarterly revenue was up 69.8% on a year-over-year basis. On average, sell-side analysts predict that Teradyne, Inc. will post 9.36 EPS for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently disclosed 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 was Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. Teradyne’s dividend payout ratio (DPR) is currently 5.97%.

Insider Transactions at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the business’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 value of $1,365,120.00. Following the completion of the transaction, the chief executive officer owned 104,495 shares of the company’s stock, valued at $35,662,053.60. The trade was a 3.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,000 shares of company stock worth $4,416,440 over the last 90 days. Company insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in Teradyne during the second quarter valued at about $9,404,408,000. Andar Capital Management HK Ltd purchased a new position in Teradyne in the second quarter valued at about $37,800,000. Bank of America Corp DE purchased a new position in Teradyne in the second quarter valued at about $842,822,000. Legal & General Group Plc bought a new position in Teradyne in the second quarter worth about $656,058,000. Finally, Assenagon Asset Management S.A. raised its holdings in Teradyne by 2,171.0% in the third quarter. Assenagon Asset Management S.A. now owns 1,074,459 shares of the company’s stock worth $430,761,000 after purchasing an additional 1,027,146 shares in 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.