Teradyne (NASDAQ:TER) Stock Falls 4.3% – Should You Sell?
by Kim Johansen · The Markets DailyTeradyne, Inc. (NASDAQ:TER – Get Free Report)’s share price was down 4.3% on Wednesday. The company traded as low as $404.80 and last traded at $411.78. Approximately 2,375,150 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 3,547,054 shares. The stock had previously closed at $430.32.
Analyst Ratings Changes
A number of research firms recently issued reports on TER. Susquehanna raised their target price on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Morgan Stanley lifted their price objective on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Cantor Fitzgerald reissued an “overweight” rating and set a $550.00 price objective on shares of Teradyne in a research report on Wednesday, July 29th. Weiss Ratings upgraded Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, September 29th. Finally, Robert W. Baird reaffirmed a “neutral” rating and issued a $420.00 target price on shares of Teradyne in a report on Friday, August 21st. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Teradyne currently has a consensus rating of “Moderate Buy” and an average target price of $396.80.
Teradyne Trading Up 1.2%
The firm’s fifty day moving average price is $381.97 and its 200-day moving average price is $371.87. The company has a market cap of $63.06 billion, a P/E ratio of 55.36, a P/E/G ratio of 0.83 and a beta of 1.75.
Teradyne (NASDAQ:TER – Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.38. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The business had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter last year, the company earned $0.57 earnings per share. The firm’s revenue was up 103.9% on a year-over-year basis. As a group, research analysts forecast that Teradyne, Inc. will post 9.11 earnings per share for the current fiscal year.
Teradyne Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend was Friday, September 4th. Teradyne’s dividend payout ratio (DPR) is presently 7.13%.
Insider Activity
In related news, CEO Gregory Smith sold 4,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total value of $1,351,320.00. Following the completion of the transaction, the chief executive officer directly owned 108,495 shares in the company, valued at approximately $36,652,865.85. This represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.19% of the company’s stock.
Institutional Investors Weigh In On Teradyne
Institutional investors have recently bought and sold shares of the business. Community Financial Services Group LLC bought a new stake in Teradyne in the second quarter valued at about $29,000. McIlrath & Eck LLC bought a new position in Teradyne during the first quarter worth about $30,000. Elevation Wealth Partners LLC lifted its stake in Teradyne by 1,320.0% during the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock worth $34,000 after purchasing an additional 66 shares during the period. Mcdonald Partners LLC acquired a new stake in Teradyne during the second quarter valued at approximately $36,000. Finally, University of Texas Texas AM Investment Management Co. bought a new stake in shares of Teradyne in the 4th quarter valued at approximately $41,000. Institutional investors and hedge funds own 99.77% of the company’s stock.
Teradyne Company Profile
Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.
Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.
Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.