Zacks Research Downgrades Teradyne (NASDAQ:TER) to Hold

Teradyne (NASDAQ:TER) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, Zacks reports.

Other equities analysts also recently issued reports about the stock. The Goldman Sachs Group restated a “buy” rating and issued a $465.00 price target on shares of Teradyne in a research note on Tuesday, July 28th. Morgan Stanley boosted their price objective on shares of Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Cantor Fitzgerald restated an “overweight” rating and set a $550.00 target price on shares of Teradyne in a research report on Wednesday, July 29th. UBS Group raised their target price on shares of Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Finally, Robert W. Baird reaffirmed a “neutral” rating and set a $420.00 target price on shares of Teradyne in a report on Friday, August 21st. Ten investment 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 presently has an average rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Price Performance

TER opened at $403.02 on Monday. The business has a fifty day simple moving average of $371.63 and a 200 day simple moving average of $365.62. The company has a market capitalization of $63.01 billion, a PE ratio of 55.28, a price-to-earnings-growth ratio of 0.81 and a beta of 1.78. Teradyne has a 1 year low of $131.75 and a 1 year high of $487.91.

Teradyne (NASDAQ:TER) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter last year, the business earned $0.57 EPS. The company’s quarterly revenue was up 103.9% compared to the same quarter last year. Equities analysts anticipate that Teradyne will post 9.11 earnings per share for the current fiscal year.

Insider Buying and Selling at Teradyne

In other news, CEO Gregory Smith sold 4,000 shares of Teradyne 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 transaction, the chief executive officer owned 108,495 shares in the company, valued at approximately $36,652,865.85. This trade represents a 3.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 Trading of Teradyne

Large investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in Teradyne during the second quarter worth about $9,404,408,000. Andar Capital Management HK Ltd acquired a new stake in Teradyne in the second quarter valued at approximately $37,800,000. Bank of America Corp DE acquired a new stake in Teradyne in the second quarter valued at approximately $842,822,000. Legal & General Group Plc bought a new stake in shares of Teradyne during the second quarter worth $656,058,000. Finally, Aspex Management HK Ltd bought a new stake in shares of Teradyne during the fourth quarter worth $199,723,000. 99.77% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne introduced the Magnum E2, a high-speed memory test system designed for next-generation DRAM and flash devices used in AI data centers. Its support for faster interfaces and greater parallelism could create growth opportunities as memory-test complexity increases. Teradyne Announces Magnum E2 to Address Next-Generation Memory Test Demands Driven by AI and High-Performance Computing
• Positive Sentiment: The Magnum E2 launch adds to Teradyne’s recent AI-related product momentum, including new UltraFLEXplus instruments for data-center semiconductor testing, the Iris 100 microLED optical tester, and a semiconductor testing partnership and expansion in India. Teradyne Debuts Magnum E2 for AI Memory Testing
• Positive Sentiment: Investors are also carrying forward the impact of Teradyne’s strong second-quarter results, when revenue reached $1.33 billion and earnings per share of $2.47 exceeded consensus by $0.38. Revenue more than doubled year over year, supporting optimism about the company’s earnings trajectory. Teradyne Stock Gained After a Q2 Beat
• Neutral Sentiment: After a substantial rally, valuation remains a key consideration. Analysts and commentators question whether Teradyne’s record results and AI expansion are fully reflected in the share price, which could limit further gains unless execution and growth remain strong. Is Teradyne Fully Valued on Its Latest Semiconductor and Robotics Expansion?
• Negative Sentiment: A Teradyne director sold 400 shares after the stock had risen more than 200% over the past year. The transaction is relatively small and does not necessarily indicate a change in the company’s outlook, but it may add modest pressure after the sharp run-up. A Teradyne Director Sells 400 Shares

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.