Teradyne (NASDAQ:TER) Shares Gap Down – Should You Sell?

Teradyne, Inc. (NASDAQ:TER) gapped down prior to trading on Monday . The stock had previously closed at $375.74, but opened at $360.12. Teradyne shares last traded at $352.6930, with a volume of 299,596 shares.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne declared a quarterly cash dividend of $0.13 per share, payable September 25 to shareholders of record as of September 4. Although the roughly 0.1% yield is modest, the payment reinforces management’s shareholder-return policy. Teradyne Declares Quarterly Cash Dividend
• Positive Sentiment: Analyst commentary identified TER as an AI infrastructure play, while broader electronics-industry investment in infrastructure and expanded capacity could benefit Teradyne’s semiconductor and robotics testing businesses. 3 Electronics Stocks Set to Benefit From a Prospering Industry
• Positive Sentiment: Teradyne remains on analysts’ earnings radar, with annual profit estimates reportedly rising. The company’s latest quarterly results also showed substantial year-over-year revenue growth and an earnings beat, supporting the longer-term growth narrative. Teradyne, Lumentum Back On Analysts’ Earnings Radar
• Neutral Sentiment: Reported short interest was listed at zero shares, with zero days to cover. Because the figures show no short position and an “NaN” change, the data appears unreliable and offers no meaningful short-squeeze signal.
• Negative Sentiment: CEO Gregory Smith sold 4,000 shares for approximately $1.7 million. The transaction occurred under a pre-planned Rule 10b5-1 schedule, reducing its significance as a signal of deteriorating management confidence, but insider selling can still weigh modestly on sentiment. Teradyne CEO Gregory Smith Sells Shares

Wall Street Analysts Forecast Growth

TER has been the topic of a number of recent analyst reports. Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Weiss Ratings upgraded Teradyne from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, August 20th. Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Evercore restated an “outperform” rating and set a $420.00 target price on shares of Teradyne in a report on Thursday, July 30th. Finally, Robert W. Baird reaffirmed a “neutral” rating and issued a $420.00 price target on shares of Teradyne in a research note on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $396.80.

Teradyne Price Performance

The stock has a market capitalization of $57.29 billion, a P/E ratio of 50.26, a price-to-earnings-growth ratio of 0.74 and a beta of 1.78. The business’s 50 day moving average price is $384.25 and its 200 day moving average price is $355.78.

Teradyne (NASDAQ:TER) last posted its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the prior year, the company earned $0.57 earnings per share. Teradyne’s revenue was up 103.9% on a year-over-year basis. As a group, analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

The business 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 dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Friday, September 4th. Teradyne’s payout ratio is currently 7.13%.

Insiders Place Their Bets

In other news, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the sale, the chief executive officer directly owned 112,495 shares in the company, valued at $47,810,375. This trade represents a 3.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TER. Leeward Financial Partners LLC purchased a new stake in Teradyne during the second quarter valued at approximately $3,735,000. Gouws Capital LLC grew its position in Teradyne by 96.0% in the 4th quarter. Gouws Capital LLC now owns 15,323 shares of the company’s stock valued at $2,966,000 after acquiring an additional 7,505 shares during the last quarter. Wealthfront Advisers LLC boosted its position in Teradyne by 56.0% in the 4th quarter. Wealthfront Advisers LLC now owns 29,336 shares of the company’s stock valued at $5,678,000 after buying an additional 10,526 shares during the period. B. Metzler seel. Sohn & Co. AG purchased a new stake in shares of Teradyne in the second quarter valued at approximately $4,826,000. Finally, Legal & General Group Plc purchased a new stake in Teradyne in the second quarter worth about $656,058,000. 99.77% of the stock is currently owned by institutional investors.

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.