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

Shares of Teradyne, Inc. (NASDAQ:TER) gapped down before the market opened on Monday . The stock had previously closed at $379.72, but opened at $347.12. Teradyne shares last traded at $345.0780, with a volume of 437,045 shares trading hands.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: New India semiconductor office: Teradyne opened its first dedicated office in Bengaluru to support customers involved in India’s expanding semiconductor fabrication, packaging and testing ecosystem. The move strengthens the company’s local presence and could position it to benefit from long-term investment in India’s domestic chip-manufacturing infrastructure. Teradyne Opens Office in India, Deepening Commitment to the Country’s Growing Semiconductor Ecosystem
• Positive Sentiment: Robotics product momentum: Teradyne subsidiary Universal Robots unveiled its seventh-generation platform, featuring redesigned controls and an AI-ready tool flange. The launch reinforces Teradyne’s exposure to industrial automation, collaborative robots and physical-AI adoption. Universal Robots Unveils Gen 7
• Positive Sentiment: Favorable industry positioning: Zacks highlighted Teradyne among robotics stocks with potential for long-term growth, citing the sector’s expected expansion across multiple industries. Such coverage may improve sentiment, though it is not a formal change to earnings estimates. Top Robotics Stocks to Add to Your Portfolio
• Neutral Sentiment: Growth opportunity versus execution: The India office is strategically positive, but the announcements did not disclose material revenue, contract or earnings expectations. The financial benefit will depend on how quickly India’s semiconductor capacity develops and how much business Teradyne captures.
• Negative Sentiment: Elevated valuation: Commentary warned that Teradyne’s test business is priced for substantial future growth, with a trailing earnings multiple above 50 times cited in one analysis. Investors may remain sensitive to any signs that semiconductor-test or robotics growth does not justify the premium valuation. Is Teradyne Stock Asking Too Much of Its Test Business?
• Negative Sentiment: Recent volatility: Teradyne shares previously slid 13% after a four-session advance, highlighting profit-taking and concerns about the stock’s elevated expectations. Teradyne Slides 13% After Four-Session Run Ends

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wall Street Zen cut shares of Teradyne from a “buy” rating to a “hold” rating in a research note on Saturday. Evercore reiterated an “outperform” rating and issued a $420.00 target price on shares of Teradyne in a report on Thursday, July 30th. 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. Cantor Fitzgerald restated an “overweight” rating and set a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Finally, Robert W. Baird reaffirmed a “neutral” rating and issued a $420.00 price target on shares of Teradyne in a research report on Friday, August 21st. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Stock Performance

The company’s 50 day moving average is $364.38 and its 200 day moving average is $360.27. The stock has a market capitalization of $52.04 billion, a price-to-earnings ratio of 45.66, a PEG ratio of 0.67 and a beta of 1.78.

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

Teradyne Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be issued a $0.13 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.52 annualized dividend and a yield of 0.2%. Teradyne’s dividend payout ratio is 7.13%.

Insider Activity at Teradyne

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $425.00, for a total value of $1,700,000.00. Following the completion of the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of Teradyne in the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd acquired a new stake in shares of Teradyne during the 2nd quarter valued at about $37,800,000. Van ECK Associates Corp increased its stake in Teradyne by 5.0% in the second quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company’s stock valued at $1,261,813,000 after acquiring an additional 123,549 shares during the period. Norges Bank acquired a new position in Teradyne in the fourth quarter worth about $398,777,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Teradyne by 0.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company’s stock worth $957,096,000 after purchasing an additional 12,659 shares in the last quarter. 99.77% of the stock is owned by institutional investors.

About Teradyne

Teradyne, Inc (NASDAQ: TER) develops and supplies automated test equipment and industrial automation solutions. Its testing products are used by semiconductor, electronics, wireless, storage and other manufacturers to evaluate the performance and quality of components, devices and systems during production.

The company’s semiconductor test business provides systems for testing logic, memory, analog and mixed-signal devices, along with related handlers and software. Teradyne also offers system and product test solutions for electronic equipment and wireless devices.