Teradyne (NASDAQ:TER) Shares Down 6.3% – Should You Sell?

Teradyne, Inc. (NASDAQ:TER) shares were down 6.3% during mid-day trading on Thursday . The company traded as low as $411.00 and last traded at $400.3830. Approximately 606,818 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 3,841,614 shares. The stock had previously closed at $427.34.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Susquehanna raised its price target on Teradyne to a Street-high $550, citing stronger chip equipment spending expectations and AI-driven demand for advanced testing. Susquehanna Boosts Teradyne to a New Street High of $550 as It Lifts Chip Equipment Spending Forecast.
• Positive Sentiment: Another valuation update lifted Teradyne’s assessed fair value from $374.82 to $416.65, reflecting higher AI-related forecasts and improved expectations for semiconductor capex. Teradyne (TER) Stock Sees Fair Value Lift As Analysts Raise AI Driven Forecasts
• Positive Sentiment: Recent commentary also highlighted Teradyne’s strong run, with the stock gaining about 38% over three months on AI demand, acquisitions, and solid guidance. Should You Buy, Sell, or Hold TER Stock After a 38% Rise in 3 Months?
• Neutral Sentiment: Some market analysis says Teradyne still trades at a premium after its huge one-year rally, suggesting much of the AI automation optimism may already be reflected in the share price. Teradyne (TER) Stock Still Trades At A Premium Following AI Automation Expansion
• Negative Sentiment: Teradyne and other chip stocks sold off as the semiconductor sector weakened on fears that AI-driven chip demand may be cooling. KLA Corporation and Teradyne Stocks Trade Down, What You Need To Know
• Negative Sentiment: Broader semiconductor weakness led to a rough start to the quarter, contributing to pressure on TER alongside the sector’s two-day selloff. Chip Stocks Off to Rough Start in Third Quarter With 2-Day Skid
• Negative Sentiment: One bearish article argued TER is risky despite its rally, which may reinforce caution after the stock’s strong run. 3 Reasons TER is Risky and 1 Stock to Buy Instead

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on TER. Stifel Nicolaus raised their price objective on Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a report on Tuesday, April 28th. Bank of America increased 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. JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 price target on the stock in a research note on Thursday, April 30th. Zacks Research upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 12th. Finally, The Goldman Sachs Group upped their price objective on shares of Teradyne from $300.00 to $350.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $382.87.

Teradyne Price Performance

The company has a fifty day moving average price of $386.59 and a 200 day moving average price of $316.48. The stock has a market cap of $57.78 billion, a PE ratio of 68.35, a P/E/G ratio of 1.07 and a beta of 1.74.

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

Teradyne Increases Dividend

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

Insider Activity

In related news, insider Shannon John Poulin sold 656 shares of Teradyne stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the transaction, the insider directly owned 15,722 shares of the company’s stock, valued at $5,581,310. The trade was a 4.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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 company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the sale, the chief executive officer owned 120,470 shares of the company’s stock, valued at $50,962,424.10. This represents a 3.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Teradyne

Large investors have recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of Teradyne during the fourth quarter valued at about $398,777,000. Wellington Management Group LLP raised its position in Teradyne by 13,949.4% during the 3rd quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock valued at $280,357,000 after purchasing an additional 2,022,389 shares during the last quarter. Aspex Management HK Ltd bought a new position in Teradyne during the 4th quarter valued at approximately $199,723,000. Corient Private Wealth LLC lifted its holdings in Teradyne by 2,189.2% in the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after buying an additional 1,028,916 shares during the period. Finally, Alkeon Capital Management LLC lifted its holdings in Teradyne by 48.6% in the 3rd quarter. Alkeon Capital Management LLC now owns 2,872,910 shares of the company’s stock worth $395,427,000 after buying an additional 940,000 shares during the period. Institutional investors own 99.77% of the company’s stock.

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.