Teradyne (NASDAQ:TER) Stock Price Up 3.2% – Should You Buy?

Shares of Teradyne, Inc. (NASDAQ:TER) traded up 3.2% during mid-day trading on Tuesday. The company traded as high as $274.10 and last traded at $269.35. 3,353,779 shares changed hands during mid-day trading, a decline of 6% from the average daily volume of 3,567,385 shares. The stock had previously closed at $261.01.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne was included among four “Strong Buy” AI stocks highlighted as potential opportunities during the tech selloff, with the article citing demand for AI infrastructure and semiconductors. 4 Strong Buy AI Stocks to Consider Amid the Tech Selloff
• Positive Sentiment: Recent analysis says AI-related sales now account for over 60% of Teradyne’s revenue and points to growth across compute, industrial, and robotics, as well as capacity expansion and potential semiconductor-fab ramps. This supports the longer-term growth case, though the article also notes competitive pressure from Advantest. Teradyne: Profit Taking Continues – AI Meltdown Is A Contrarian Gift
• Positive Sentiment: Teradyne Robotics’ partnership with Sereact brings its physical-AI platform to retail and logistics automation, including returns handling and picking. The report says deployments are already operating at European logistics hubs, offering another potential growth avenue. Is Teradyne Changing The Robotics Story With Its New Physical AI Push?
• Neutral Sentiment: Coverage also highlights robotics profitability as an addition to Teradyne’s AI growth story, but the provided article details do not quantify the contribution. Teradyne stock: Robotics profitability broadens AI growth case
• Negative Sentiment: The immediate headwind is a broader tech selloff: Teradyne was among several semiconductor-related stocks reported trading lower. The coverage suggests sector risk-off sentiment and profit-taking are weighing on the shares despite the company-specific AI growth narrative. Semiconductor-related stocks trade down

Analyst Ratings Changes

TER has been the topic of several analyst reports. UBS Group dropped their target price on Teradyne from $485.00 to $430.00 and set a “buy” rating on the stock in a report on Thursday, October 29th. Morgan Stanley upped their price target on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 30th. Weiss Ratings upgraded shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, September 29th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $550.00 target price on shares of Teradyne in a research report on Wednesday, July 29th. One 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 stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $405.86.

Teradyne Price Performance

The firm has a market capitalization of $33.21 billion, a PE ratio of 24.42, a price-to-earnings-growth ratio of 0.49 and a beta of 1.73. The stock has a 50-day moving average price of $354.68 and a 200-day moving average price of $348.79.

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

Teradyne Dividend Announcement

The business also recently declared 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 dividend yield of 0.2%. The ex-dividend date was Friday, September 4th. Teradyne’s payout ratio is 5.97%.

Insider Transactions at Teradyne

In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the transaction, the chief executive officer directly owned 104,495 shares in the company, valued at $35,662,053.60. This represents a 3.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,000 shares of company stock valued at $4,416,440 over the last 90 days. Corporate insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

Hedge funds and other institutional investors have recently modified their holdings of the stock. Maryland State Retirement & Pension System raised its position in shares of Teradyne by 14.9% during the third quarter. Maryland State Retirement & Pension System now owns 9,577 shares of the company’s stock worth $3,840,000 after purchasing an additional 1,242 shares during the period. Jacobi Capital Management LLC purchased a new stake in shares of Teradyne during the third quarter valued at $55,000. First Command Advisory Services Inc. boosted its position in shares of Teradyne by 298.9% in the 3rd quarter. First Command Advisory Services Inc. now owns 734 shares of the company’s stock valued at $294,000 after purchasing an additional 550 shares during the period. Illinois Municipal Retirement Fund boosted its position in shares of Teradyne by 1.0% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 82,897 shares of the company’s stock valued at $33,234,000 after purchasing an additional 799 shares during the period. Finally, Renasant Bank acquired a new position in shares of Teradyne in the 3rd quarter valued at $809,000. Institutional investors own 99.77% of the company’s stock.

Teradyne Company Profile

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.