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

Teradyne, Inc. (NASDAQ:TER)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $379.52, but opened at $354.06. Teradyne shares last traded at $345.55, with a volume of 874,612 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms recently commented on TER. Bank of America raised their price target on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Robert W. Baird increased their target price on shares of Teradyne from $350.00 to $446.00 and gave the stock an “outperform” rating in a research note on Tuesday, June 23rd. Morgan Stanley set a $387.00 target price on Teradyne in a research report on Thursday, April 30th. Susquehanna upped their price target on Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a report on Tuesday, June 30th. Finally, JPMorgan Chase & Co. upgraded Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 price target on the stock in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Teradyne currently has an average rating of “Moderate Buy” and an average price target of $390.53.

Teradyne Trading Up 2.5%

The firm’s fifty day moving average is $383.65 and its 200 day moving average is $320.90. The company has a market cap of $55.03 billion, a PE ratio of 65.11, a price-to-earnings-growth ratio of 0.99 and a beta of 1.74.

Teradyne (NASDAQ:TER) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period last year, the firm posted $0.75 earnings per share. The company’s revenue was up 87.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Teradyne, Inc. will post 7.2 EPS for the current fiscal year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were paid a $0.13 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a yield of 0.1%. This is a boost from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio is 9.63%.

Insider Buying and Selling

In other Teradyne news, insider Shannon John Poulin sold 656 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total transaction of $232,880.00. Following the completion of the sale, the insider directly owned 15,722 shares in the company, valued at approximately $5,581,310. The trade was a 4.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Stephen Smith sold 4,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $423.03, for a total value of $1,692,120.00. Following the transaction, the chief executive officer directly owned 120,470 shares of the company’s stock, valued at $50,962,424.10. The trade was a 3.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,941 shares of company stock worth $5,444,112. Insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in TER. Vestor Capital LLC boosted its stake in Teradyne by 15.4% during the 1st quarter. Vestor Capital LLC now owns 285 shares of the company’s stock worth $85,000 after purchasing an additional 38 shares during the last quarter. UMB Bank n.a. grew its holdings in shares of Teradyne by 1.8% during the fourth quarter. UMB Bank n.a. now owns 2,293 shares of the company’s stock worth $444,000 after buying an additional 40 shares in the last quarter. Stephens Inc. AR raised its position in shares of Teradyne by 1.2% in the fourth quarter. Stephens Inc. AR now owns 3,332 shares of the company’s stock valued at $645,000 after buying an additional 41 shares during the last quarter. Sapient Capital LLC raised its position in shares of Teradyne by 1.5% in the fourth quarter. Sapient Capital LLC now owns 2,849 shares of the company’s stock valued at $560,000 after buying an additional 43 shares during the last quarter. Finally, Whittier Trust Co. lifted its stake in shares of Teradyne by 5.5% in the first quarter. Whittier Trust Co. now owns 827 shares of the company’s stock worth $261,000 after buying an additional 43 shares in the last quarter. 99.77% of the stock is owned by institutional investors and hedge funds.

Teradyne Company Profile

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.