Primecap Management Co. CA Makes New $235.07 Million Investment in Teradyne, Inc. $TER

Primecap Management Co. CA bought a new stake in shares of Teradyne, Inc. (NASDAQ:TER) during the second quarter, HoldingsChannel reports. The fund bought 485,840 shares of the company’s stock, valued at approximately $235,069,000.

Several other hedge funds also recently bought and sold shares of the stock. Community Financial Services Group LLC acquired a new stake in shares of Teradyne during the second quarter valued at $29,000. Elevation Wealth Partners LLC raised its stake in Teradyne by 1,320.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after purchasing an additional 66 shares during the last quarter. Mcdonald Partners LLC purchased a new position in Teradyne in the 2nd quarter valued at about $36,000. Hilltop National Bank purchased a new position in Teradyne in the 2nd quarter valued at about $41,000. Finally, McIlrath & Eck LLC acquired a new stake in shares of Teradyne during the 1st quarter worth about $30,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.

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 Analyst Weigh In

TER has been the subject of several recent analyst reports. Stifel Nicolaus lifted their target price on shares of Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a research note on Tuesday, April 28th. Citigroup increased their price target on Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Evercore restated an “outperform” rating and set a $420.00 price objective on shares of Teradyne in a report on Thursday, July 30th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $465.00 price objective on shares of Teradyne in a research report on Tuesday, July 28th. Finally, Susquehanna upped their target price on Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Trading Up 0.4%

Shares of Teradyne stock opened at $366.43 on Wednesday. Teradyne, Inc. has a twelve month low of $109.56 and a twelve month high of $487.91. The stock has a market cap of $57.29 billion, a price-to-earnings ratio of 50.26, a price-to-earnings-growth ratio of 0.74 and a beta of 1.78. The company has a fifty day moving average price of $384.25 and a 200 day moving average price of $355.78.

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

Teradyne Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Friday, September 4th. Teradyne’s dividend payout ratio is 7.13%.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the sale, the chief executive officer owned 112,495 shares in the company, valued at $47,810,375. This represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.19% of the company’s stock.

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.