Teradyne (NASDAQ:TER) Shares Down 9.7% – Here’s What Happened

Teradyne, Inc. (NASDAQ:TER)’s stock price was down 9.7% during mid-day trading on Thursday. The company traded as low as $312.95 and last traded at $312.0320. Approximately 746,210 shares changed hands during trading, a decline of 79% from the average session volume of 3,509,714 shares. The stock had previously closed at $345.49.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Industrial AI expansion: Teradyne Robotics is partnering with Sereact to deploy “physical AI” solutions for difficult-to-automate retail and logistics tasks, including processing fashion returns. The collaboration supports Teradyne’s longer-term robotics growth story, although near-term financial benefits were not disclosed. Teradyne Robotics and Sereact Partner to Scale Physical AI Solutions for Retail and Logistics
• Positive Sentiment: Analyst and fund-flow support: UBS reportedly set a $485 price target, while Teradyne attracted approximately $84.4 million in net ETF buying on October 20. Analysts also continue to highlight the company’s margins, growth prospects and upcoming earnings catalyst. UBS sets $485 target
• Neutral Sentiment: Earnings are the next major catalyst: Teradyne’s October 27 results will be closely watched after its latest quarter substantially exceeded earnings and revenue expectations. Investors are likely focused on whether semiconductor test demand, robotics growth and management guidance can justify the stock’s elevated valuation. October 27 results loom for Teradyne stock
• Negative Sentiment: Broad AI and chip-stock weakness: Teradyne is participating in a wider selloff affecting semiconductor and AI names, as investors question whether the recent technology rebound can be sustained. The sector pressure appears to be the main immediate reason for the stock’s decline, rather than a newly reported company-specific problem. Chip Stocks Tumble, Crushing Investor Hopes for a Long-Term Rebound

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on TER. Robert W. Baird reaffirmed a “neutral” rating and issued a $420.00 target price on shares of Teradyne in a research report on Friday, August 21st. Cantor Fitzgerald reissued an “overweight” rating and set a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Evercore reissued an “outperform” rating and set a $420.00 price target on shares of Teradyne in a report on Thursday, July 30th. Zacks Research cut shares of Teradyne from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Finally, Morgan Stanley lifted their price objective on shares of Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Eleven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Teradyne presently has a consensus rating of “Moderate Buy” and an average price target of $396.80.

Teradyne Stock Down 10.6%

The firm has a market capitalization of $48.27 billion, a price-to-earnings ratio of 42.35, a P/E/G ratio of 0.68 and a beta of 1.75. The company has a 50-day moving average price of $377.45 and a 200-day moving average price of $375.23.

Teradyne (NASDAQ:TER) last posted its earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.09 by $0.38. The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%. The firm’s revenue was up 103.9% compared to the same quarter last year. During the same period last year, the firm earned $0.57 EPS. As a group, analysts forecast that Teradyne, Inc. will post 9.11 earnings per share for the current year.

Teradyne Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a $0.13 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 annualized dividend and a yield of 0.2%. Teradyne’s dividend payout ratio is presently 7.13%.

Insiders Place Their Bets

In related news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction dated 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 in the company, valued at $35,662,053.60. This represents a 3.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,000 shares of company stock valued at $4,416,440 over the last three months. Corporate insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Leeward Financial Partners LLC acquired a new stake in shares of Teradyne in the second quarter worth $3,735,000. Legal & General Group Plc acquired a new position in Teradyne during the 2nd quarter valued at $656,058,000. B. Metzler seel. Sohn & Co. AG acquired a new position in Teradyne during the 2nd quarter valued at $4,826,000. Handelsbanken Fonder AB raised its stake in Teradyne by 2.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company’s stock valued at $61,927,000 after purchasing an additional 3,250 shares during the last quarter. Finally, Baird Financial Group Inc. boosted its holdings in Teradyne by 147.2% in the 2nd quarter. Baird Financial Group Inc. now owns 53,029 shares of the company’s stock valued at $25,658,000 after purchasing an additional 31,579 shares during the period. 99.77% of the stock is currently owned by institutional investors.

About Teradyne

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.