Teradyne (NASDAQ:TER) Shares Gap Down – Time to Sell?

Teradyne, Inc. (NASDAQ:TER) gapped down prior to trading on Wednesday. The stock had previously closed at $323.68, but opened at $302.68. Teradyne shares last traded at $307.5310, with a volume of 991,672 shares changing hands.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported third-quarter revenue of approximately $1.31 billion, up nearly 70% year over year, while EPS of $2.29 exceeded the $2.09 consensus estimate. AI-related demand drove record revenue in memory and integrated-systems testing, supporting the company’s expectations for continued growth. Teradyne Q3 Earnings Beat Estimates, Revenues Increase Year over Year
• Positive Sentiment: Management highlighted expanding AI compute programs, capacity investments and a targeted compute ramp in mid-2027. The company’s AI-driven growth outlook and record memory-test activity could support Teradyne’s longer-term earnings trajectory. Teradyne Q3 Earnings Call Highlights AI Demand and 2027 Growth Plans
• Neutral Sentiment: Northland Securities made mixed estimate changes: its FY2026 EPS forecast increased to $9.40 from $9.34 and its Q2 2027 forecast rose to $2.63, but its Q1 2027 estimate fell to $2.27 from $2.59 and its Q4 2026 estimate edged down to $2.10. The FY2026 forecast remains above the $9.17 consensus. Teradyne analyst estimates
• Negative Sentiment: Shares fell after the earnings release because fourth-quarter revenue guidance of $1.25 billion to $1.35 billion and commentary about margin pressure did not fully match the market’s elevated expectations, despite the earnings beat. Teradyne stock falls despite Q3 earnings beat
• Negative Sentiment: UBS lowered its price target to $430 from $485 while maintaining a Buy rating. Analysts and investors are also questioning whether Teradyne’s substantial prior gains and premium valuation already reflect much of its AI growth potential. Teradyne stock may be above fair value despite record AI demand

Analyst Upgrades and Downgrades

TER has been the topic of a number of research reports. UBS Group reduced their target price on shares of Teradyne from $485.00 to $430.00 and set a “buy” rating on the stock in a report on Thursday. Morgan Stanley lifted their price target on shares of Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Evercore reissued an “outperform” rating and issued a $420.00 price objective on shares of Teradyne in a research note on Thursday, July 30th. Weiss Ratings upgraded Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, September 29th. Finally, The Goldman Sachs Group set a $440.00 target price on Teradyne in a research report on Wednesday. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Teradyne currently has a consensus rating of “Moderate Buy” and an average price target of $405.86.

Teradyne Trading Down 5.4%

The stock has a market cap of $46.31 billion, a price-to-earnings ratio of 34.01, a P/E/G ratio of 0.63 and a beta of 1.75. The stock’s 50-day moving average price is $366.38 and its 200-day moving average price is $348.15.

Teradyne (NASDAQ:TER) last released its earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.20. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the previous year, the business earned $0.85 earnings per share. Teradyne’s revenue for the quarter was up 69.8% on a year-over-year basis. As a group, analysts predict that Teradyne, Inc. will post 9.17 earnings per share for the current year.

Teradyne Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a dividend of $0.13 per share. The ex-dividend date was Friday, September 4th. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. Teradyne’s dividend payout ratio is presently 7.13%.

Insider Buying and Selling

In related news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the completion of the sale, the chief executive officer owned 104,495 shares of the company’s stock, valued at $35,662,053.60. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,000 shares of company stock worth $4,416,440 over the last ninety days. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Teradyne

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Teradyne in the 2nd quarter worth $9,404,408,000. Andar Capital Management HK Ltd purchased a new stake in shares of Teradyne in the second quarter valued at about $37,800,000. State Street Corp lifted its position in shares of Teradyne by 4.6% during the second quarter. State Street Corp now owns 7,290,460 shares of the company’s stock valued at $3,527,416,000 after purchasing an additional 320,034 shares in the last quarter. Van ECK Associates Corp lifted its position in shares of Teradyne by 5.0% during the second quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company’s stock valued at $1,261,813,000 after purchasing an additional 123,549 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Teradyne by 0.6% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company’s stock valued at $957,096,000 after purchasing an additional 12,659 shares in the last quarter. 99.77% of the stock is currently owned by institutional investors.

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company’s product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.