Teradyne (NASDAQ:TER) Stock Price Down 3.2% – Should You Sell?

Teradyne, Inc. (NASDAQ:TER)’s stock price was down 3.2% on Thursday. The stock traded as low as $388.85 and last traded at $398.72. 3,318,687 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 3,548,806 shares. The stock had previously closed at $411.78.

Wall Street Analyst Weigh In

Several research firms have weighed in on TER. Evercore reaffirmed an “outperform” rating and issued a $420.00 price target on shares of Teradyne in a research note on Thursday, July 30th. Weiss Ratings raised Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, September 29th. Morgan Stanley raised their price objective on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Susquehanna increased their target price on Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a report on Tuesday, June 30th. Finally, Wall Street Zen downgraded shares of Teradyne from a “buy” rating to a “hold” rating in a report on Monday, September 28th. Eleven analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Price Performance

The firm has a market capitalization of $62.95 billion, a PE ratio of 55.24, a PEG ratio of 0.81 and a beta of 1.75. The firm’s fifty day moving average is $382.67 and its two-hundred day moving average is $372.09.

Teradyne (NASDAQ:TER) last announced its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. The firm had revenue of $1.33 billion for 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 revenue was up 103.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.57 EPS. As a group, equities research analysts predict that Teradyne, Inc. will post 9.11 EPS for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently announced 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. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Friday, September 4th. Teradyne’s payout ratio is presently 7.13%.

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the completion of the transaction, the chief executive officer owned 108,495 shares in the company, valued at approximately $36,652,865.85. This represents a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a filing 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. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Teradyne in the 2nd quarter worth approximately $9,404,408,000. State Street Corp raised its stake in shares of Teradyne by 4.6% in the second quarter. State Street Corp now owns 7,290,460 shares of the company’s stock valued at $3,527,416,000 after buying an additional 320,034 shares during the period. Van ECK Associates Corp lifted its position in shares of Teradyne by 5.0% during the 2nd quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company’s stock valued at $1,261,813,000 after buying an additional 123,549 shares during the last quarter. ABS Investment Management LLC bought a new position in shares of Teradyne during the 2nd quarter worth $1,006,387,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Teradyne by 0.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company’s stock valued at $957,096,000 after acquiring an additional 12,659 shares during the period. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

Teradyne Company Profile

Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.