Teradyne (NASDAQ:TER) Shares Down 8.2% – What’s Next?

Teradyne, Inc. (NASDAQ:TER)’s stock price fell 8.2% on Friday . The stock traded as low as $279.08 and last traded at $280.59. 2,429,816 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 3,503,679 shares. The stock had previously closed at $305.58.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: AI test demand and 5G exposure underpin revenue/earnings upside — coverage notes Teradyne is benefiting from stronger test demand for AI chips and ongoing 5G buildouts, which support its recent top-line and EPS beats. Teradyne Rides AI Test Demand And 5G Growth But Valuation Questions Rise
• Positive Sentiment: Institutional interest and analyst support — multiple analyst notes call TER a “moderate buy” and filings show large ARK Invest ownership, which can provide durable demand and credibility for growth narratives. Teradyne, Inc. (TER) a Moderate Buy, Say Analysts
• Neutral Sentiment: Considered a worthwhile smaller play in the broader AI theme — sector screens and commentary highlight TER as a lesser-discussed AI-related name to watch, supporting continued investor interest but not guaranteeing outperformance. 2 Lesser Discussed AI Stocks Worth Keeping a Close Eye On
• Neutral Sentiment: Rerating tied to AI test intensity — analysis warns the next leg of multiple expansion depends on sustained, measurable increases in AI testing activity rather than hopes alone. Teradyne’s Rerating Is Real, But The Next Leg Depends On AI Test Intensity
• Negative Sentiment: Valuation concerns: some analysts question whether recent gains already price in too much optimism — pieces point to a very large run-up versus fundamentals, raising downside risk if AI test growth disappoints. Is Teradyne (TER) Pricing In Too Much Optimism After Its 191% One Year Surge?
• Negative Sentiment: Short-term relative weakness: coverage notes TER underperformed peers on Friday, signaling potential profit-taking or rotation away from high-multiple names. Teradyne Inc. stock underperforms Friday when compared to competitors

Analyst Upgrades and Downgrades

TER has been the subject of a number of recent analyst reports. TD Cowen reiterated a “buy” rating on shares of Teradyne in a research note on Thursday, January 22nd. Zacks Research upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, February 4th. UBS Group upped their target price on shares of Teradyne from $200.00 to $275.00 and gave the company a “buy” rating in a report on Monday, January 26th. Vertical Research downgraded shares of Teradyne from a “buy” rating to a “hold” rating and set a $220.00 target price for the company. in a research note on Friday, January 9th. Finally, Wall Street Zen raised Teradyne from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $256.24.

Teradyne Stock Performance

The company’s fifty day simple moving average is $265.14 and its two-hundred day simple moving average is $193.37. The stock has a market capitalization of $42.75 billion, a P/E ratio of 78.46, a PEG ratio of 1.69 and a beta of 1.76.

Teradyne (NASDAQ:TER) last issued its quarterly earnings data on Tuesday, February 3rd. The company reported $1.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.36 by $0.44. Teradyne had a return on equity of 22.68% and a net margin of 17.37%.The company had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $970.44 million. During the same quarter in the previous year, the company posted $0.95 earnings per share. The business’s revenue was up 43.9% on a year-over-year basis. On average, research analysts predict that Teradyne, Inc. will post 3.88 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Friday, February 13th will be paid a $0.12 dividend. The ex-dividend date is Friday, February 13th. This represents a $0.48 annualized dividend and a yield of 0.2%. Teradyne’s payout ratio is 14.94%.

Insider Buying and Selling

In other Teradyne news, CEO Gregory Stephen Smith sold 1,108 shares of the company’s stock in a transaction 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 transaction, the chief executive officer directly owned 93,409 shares of the company’s stock, valued at $18,804,165.79. This represents a 1.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently modified their holdings of TER. Caitong International Asset Management Co. Ltd bought a new position in Teradyne during the fourth quarter worth about $28,000. Root Financial Partners LLC acquired a new stake in Teradyne in the 3rd quarter worth about $31,000. Davidson Capital Management Inc. bought a new stake in Teradyne in the 3rd quarter valued at about $31,000. CYBER HORNET ETFs LLC bought a new stake in Teradyne in the 2nd quarter valued at about $35,000. Finally, Hemington Wealth Management grew its position in shares of Teradyne by 43.2% during the 3rd quarter. Hemington Wealth Management now owns 262 shares of the company’s stock worth $36,000 after purchasing an additional 79 shares in the last quarter. 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.