Teradyne (NASDAQ:TER) Shares Up 12.7% – Here’s Why

Teradyne, Inc. (NASDAQ:TER)’s share price shot up 12.7% during mid-day trading on Monday. The company traded as high as $247.48 and last traded at $246.00. 5,343,890 shares were traded during mid-day trading, an increase of 47% from the average daily volume of 3,629,651 shares. The stock had previously closed at $218.21.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced Omnyx Edge, an inline board-test platform for the compute, sensing and motion boards used in physical and edge AI. The launch could broaden Teradyne’s testing opportunities as AI applications expand beyond data centers, though the announcement did not quantify expected revenue. Teradyne Introduces Omnyx Edge
• Positive Sentiment: Zacks upgraded TER to Rank #1, or Strong Buy, citing improving optimism about the company’s earnings prospects. The upgrade may support investor confidence, although it is based on earnings expectations rather than a newly announced financial result. Teradyne upgraded to Strong Buy
• Neutral Sentiment: Teradyne declared a quarterly cash dividend of $0.13 per share, payable December 16 to shareholders of record November 23. The announcement maintains a cash return to shareholders but does not indicate a dividend increase. Teradyne declares quarterly cash dividend

Analyst Ratings Changes

A number of equities analysts have recently commented on TER shares. Morgan Stanley raised 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. Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a report on Friday, October 30th. Evercore reiterated an “outperform” rating and issued a $420.00 target price on shares of Teradyne in a research note on Thursday, July 30th. Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Finally, Robert W. Baird lowered shares of Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price target for the company. in a research report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $405.86.

Teradyne Stock Performance

The stock’s 50 day simple moving average is $351.61 and its 200 day simple moving average is $348.76. The firm has a market cap of $38.41 billion, a PE ratio of 28.24, a PEG ratio of 0.43 and a beta of 1.73.

Teradyne (NASDAQ:TER) last posted its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.20. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the company posted $0.85 EPS. The business’s quarterly revenue was up 69.8% on a year-over-year basis. As a group, analysts anticipate that Teradyne, Inc. will post 9.41 earnings per share for the current year.

Teradyne Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend was Friday, September 4th. Teradyne’s dividend payout ratio is currently 5.97%.

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the sale, the chief executive officer owned 104,495 shares in the company, valued at $35,662,053.60. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,000 shares of company stock worth $4,416,440 in the last quarter. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Teradyne

Several institutional investors have recently modified their holdings of TER. BlackRock Inc. bought a new position in Teradyne during the second quarter valued at approximately $9,404,408,000. State Street Corp raised its stake in shares of Teradyne by 4.6% during the second quarter. State Street Corp now owns 7,290,460 shares of the company’s stock worth $3,527,416,000 after acquiring an additional 320,034 shares in the last quarter. Aberdeen Group plc raised its stake in shares of Teradyne by 3,714.7% during the third quarter. Aberdeen Group plc now owns 4,654,505 shares of the company’s stock worth $1,866,038,000 after acquiring an additional 4,532,489 shares in the last quarter. Van ECK Associates Corp lifted its holdings in shares of Teradyne by 5.0% in the 2nd quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company’s stock worth $1,261,813,000 after acquiring an additional 123,549 shares during the last quarter. Finally, ABS Investment Management LLC bought a new stake in shares of Teradyne in the 2nd quarter worth approximately $1,006,387,000. 99.77% of the stock is currently owned by institutional investors.

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and robotics used by manufacturers around the world. Its test systems help customers evaluate the performance and reliability of semiconductor devices, electronic products, wireless components and storage products.

The company’s offerings include semiconductor test systems, system-level test equipment and wireless test solutions. Teradyne also serves industrial automation markets through Universal Robots, which makes collaborative robots, and Mobile Industrial Robots, which develops autonomous mobile robots for moving materials in factories and other facilities.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers across global markets.