Stock Traders Purchase High Volume of Call Options on Teradyne (NASDAQ:TER)

Teradyne, Inc. (NASDAQ:TER) was the target of unusually large options trading on Monday. Stock traders acquired 19,317 call options on the company. This represents an increase of approximately 295% compared to the typical daily volume of 4,886 call options.

Insiders Place Their Bets

In related news, CEO Gregory Stephen Smith sold 1,108 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $201.31, for a total value of $223,051.48. Following the completion of the transaction, the chief executive officer directly owned 93,409 shares of the company’s stock, valued at $18,804,165.79. This trade represents a 1.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.16% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Teradyne by 2.1% during the third quarter. Vanguard Group Inc. now owns 21,417,717 shares of the company’s stock worth $2,947,935,000 after acquiring an additional 444,940 shares during the last quarter. State Street Corp grew its stake in Teradyne by 0.3% during the 3rd quarter. State Street Corp now owns 7,017,649 shares of the company’s stock valued at $965,909,000 after purchasing an additional 24,154 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in Teradyne by 6.8% during the 3rd quarter. Ameriprise Financial Inc. now owns 5,256,857 shares of the company’s stock worth $723,600,000 after purchasing an additional 336,757 shares during the last quarter. Federated Hermes Inc. raised its position in shares of Teradyne by 79.7% in the 2nd quarter. Federated Hermes Inc. now owns 3,785,067 shares of the company’s stock valued at $340,353,000 after purchasing an additional 1,679,215 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in shares of Teradyne by 11.4% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 3,473,173 shares of the company’s stock valued at $490,134,000 after buying an additional 354,876 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company’s stock.

Teradyne Price Performance

NASDAQ:TER traded up $8.66 during mid-day trading on Monday, reaching $249.71. The company’s stock had a trading volume of 4,607,069 shares, compared to its average volume of 2,935,101. The stock has a market cap of $39.11 billion, a P/E ratio of 90.80, a P/E/G ratio of 1.73 and a beta of 1.83. The company’s fifty day simple moving average is $207.62 and its two-hundred day simple moving average is $158.02. Teradyne has a twelve month low of $65.77 and a twelve month high of $255.20.

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 13th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, February 13th. This represents a $0.48 dividend on an annualized basis and a yield of 0.2%. Teradyne’s dividend payout ratio (DPR) is currently 17.45%.

Wall Street Analyst Weigh In

TER has been the subject of several research reports. Robert W. Baird set a $195.00 price target on Teradyne in a research note on Friday, October 31st. TD Cowen restated a “buy” rating on shares of Teradyne in a report on Thursday, January 22nd. JPMorgan Chase & Co. lifted their target price on shares of Teradyne from $122.00 to $190.00 and gave the stock a “neutral” rating in a research report on Thursday, October 30th. Zacks Research lowered shares of Teradyne from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 29th. Finally, UBS Group raised their price objective on shares of Teradyne from $200.00 to $275.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Ten research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $218.06.

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.