Teradyne (NASDAQ:TER) Shares Gap Down – What’s Next?

Shares of Teradyne, Inc. (NASDAQ:TER) gapped down prior to trading on Wednesday . The stock had previously closed at $380.13, but opened at $314.54. Teradyne shares last traded at $326.9870, with a volume of 3,310,234 shares.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: JPMorgan upgraded Teradyne from Neutral to Overweight and set a $400 price target, highlighting the post?earnings pullback as an attractive entry point. JPMorgan upgrade
• Positive Sentiment: Teradyne reported a strong Q1: EPS and revenue beat (record revenue, ~87% y/y growth), underpinned by AI?driven demand — a fundamental positive that supports longer?term growth expectations. Q1 earnings beat
• Positive Sentiment: Unusual options activity: heavy call buying (6,641 calls, ~16% above average) signals short?term bullish positioning by traders (adds upside pressure).
• Positive Sentiment: Teradyne was listed among top momentum stocks (Zacks Rank #1), which can attract momentum and quant flows. Momentum stock listing
• Neutral Sentiment: Morgan Stanley characterized recent results as more an “expectations issue” than an operational miss, tempering but not negating the AI opportunity; this suggests sentiment (not fundamentals) drove part of the volatility. Morgan Stanley note
• Neutral Sentiment: Strategic partnership expansion with Flex to scale physical AI could boost long?term market opportunity, but is more medium?term than an immediate catalyst. Flex partnership
• Negative Sentiment: Management’s Q2 revenue guidance ($1.15B–$1.25B) and the mid?cycle model for FY targets disappointed some investors who priced more aggressive growth, triggering the initial selloff. Guidance disappointment
• Negative Sentiment: Post?earnings volatility included a steep intraday decline (double?digit drops reported by several outlets) as momentum traders and algorithms reacted to the guidance vs. expectations mismatch. Post?earnings selloff coverage

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Cantor Fitzgerald lifted their target price on Teradyne from $330.00 to $400.00 and gave the stock an “overweight” rating in a report on Thursday, April 9th. Vertical Research downgraded Teradyne from a “buy” rating to a “hold” rating and set a $220.00 target price for the company. in a report on Friday, January 9th. Northland Securities reiterated a “market perform” rating and issued a $270.00 target price on shares of Teradyne in a report on Wednesday, February 4th. Bank of America lifted their target price on Teradyne from $250.00 to $260.00 and gave the stock a “buy” rating in a report on Thursday, January 22nd. Finally, UBS Group lifted their target price on Teradyne from $325.00 to $440.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Eleven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $339.80.

Teradyne Stock Up 12.1%

The stock has a 50 day simple moving average of $329.08 and a 200 day simple moving average of $249.02. The stock has a market cap of $53.77 billion, a price-to-earnings ratio of 63.61, a PEG ratio of 1.77 and a beta of 1.79.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Tuesday, April 28th. The company reported $2.56 EPS for the quarter, beating analysts’ consensus estimates of $2.11 by $0.45. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter last year, the firm posted $0.75 earnings per share. The company’s revenue for the quarter was up 87.0% compared to the same quarter last year. Teradyne has set its Q2 2026 guidance at 1.860-2.150 EPS. Equities analysts expect that Teradyne, Inc. will post 6.33 earnings per share for the current year.

Institutional Investors Weigh In On Teradyne

Hedge funds have recently added to or reduced their stakes in the company. Conning Inc. purchased a new position in shares of Teradyne during the first quarter valued at approximately $204,000. Petix & Botte Co purchased a new position in shares of Teradyne during the first quarter valued at approximately $296,000. Sequoia Financial Advisors LLC boosted its position in shares of Teradyne by 22.5% during the first quarter. Sequoia Financial Advisors LLC now owns 9,001 shares of the company’s stock valued at $2,668,000 after buying an additional 1,651 shares during the last quarter. Kestra Advisory Services LLC boosted its position in shares of Teradyne by 25.3% during the first quarter. Kestra Advisory Services LLC now owns 5,444 shares of the company’s stock valued at $1,614,000 after buying an additional 1,098 shares during the last quarter. Finally, Resona Asset Management Co. Ltd. boosted its position in shares of Teradyne by 0.9% during the first quarter. Resona Asset Management Co. Ltd. now owns 47,918 shares of the company’s stock valued at $14,029,000 after buying an additional 440 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company’s stock.

About Teradyne

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.