Teradyne (NASDAQ:TER) Shares Gap Up – Still a Buy?

Teradyne, Inc. (NASDAQ:TER) shares gapped up prior to trading on Wednesday . The stock had previously closed at $409.35, but opened at $429.23. Teradyne shares last traded at $429.27, with a volume of 338,630 shares trading hands.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne stock has broken out above a proper buy point and is nearing a new high, with investors treating it as an AI-related winner inside a high-ranking semiconductor equipment group. Teradyne Stock Actionable Now After AI Play’s Strong Gap-Up Breakout
• Positive Sentiment: Analysts and market commentary are emphasizing Teradyne’s stronger AI exposure, faster earnings growth, and expanding test and packaging opportunities versus peers, which supports the stock’s bullish narrative. TER vs. AMAT: Which AI Semiconductor Stock Is the Better Buy?
• Positive Sentiment: Teradyne will join the Nasdaq-100 on June 22, which should increase visibility and demand from index and ETF investors. The company also announced a $139.9 million U.S. Air Force contract, adding a new source of revenue and broadening its defense exposure. Teradyne (TER) Joins The Nasdaq 100 As It Lands A $139.9 Million Air Force Deal
• Positive Sentiment: Teradyne Robotics is set to showcase “physical AI” applications at Automate 2026, underscoring momentum in its automation and robotics businesses. Teradyne (TER) to Showcase Physical AI Robotics at Automate 2026
• Neutral Sentiment: Broker coverage remains constructive overall, with the stock carrying a “Moderate Buy” consensus and several raised price targets, but valuation concerns are keeping some investors cautious. Teradyne, Inc. (NASDAQ:TER) Given Consensus Rating of “Moderate Buy” by Brokerages
• Negative Sentiment: CEO Gregory Stephen Smith sold 4,000 shares in a pre-arranged Rule 10b5-1 transaction, which can weigh on sentiment even though the sale was scheduled in advance. SEC ownership filing

Analyst Ratings Changes

TER has been the subject of a number of recent analyst reports. Robert W. Baird set a $350.00 price target on shares of Teradyne in a research note on Thursday, April 30th. Morgan Stanley set a $387.00 price objective on shares of Teradyne in a research report on Thursday, April 30th. The Goldman Sachs Group raised their price objective on shares of Teradyne from $300.00 to $350.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. UBS Group boosted their target price on Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Finally, Cantor Fitzgerald upped their target price on Teradyne from $330.00 to $400.00 and gave the company an “overweight” rating in a research note on Thursday, April 9th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $339.80.

Teradyne Trading Up 7.2%

The firm has a market cap of $68.55 billion, a PE ratio of 81.10, a P/E/G ratio of 1.68 and a beta of 1.79. The business’s 50-day simple moving average is $372.90 and its 200 day simple moving average is $299.04.

Teradyne (NASDAQ:TER) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $2.56 EPS for the quarter, beating the consensus estimate of $2.11 by $0.45. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same quarter in the previous year, the business posted $0.75 EPS. The company’s quarterly revenue was up 87.0% compared to the same quarter last year. Analysts expect that Teradyne, Inc. will post 7.09 earnings per share for the current year.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 0.1%. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne’s payout ratio is presently 9.63%.

Insiders Place Their Bets

In other Teradyne news, VP Ryan Driscoll sold 680 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the sale, the vice president owned 7,665 shares of the company’s stock, valued at approximately $2,894,304. This trade represents a 8.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the sale, the insider directly owned 15,722 shares in the company, valued at $5,581,310. This trade represents a 4.01% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 14,941 shares of company stock worth $5,444,112 over the last 90 days. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in shares of Teradyne during the fourth quarter valued at $398,777,000. Wellington Management Group LLP raised its stake in Teradyne by 13,949.4% in the 3rd quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock worth $280,357,000 after acquiring an additional 2,022,389 shares during the last quarter. Aspex Management HK Ltd purchased a new position in Teradyne in the 4th quarter worth $199,723,000. Corient Private Wealth LLC lifted its position in Teradyne by 2,189.2% during the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after acquiring an additional 1,028,916 shares during the period. Finally, Alkeon Capital Management LLC lifted its position in Teradyne by 48.6% during the 3rd quarter. Alkeon Capital Management LLC now owns 2,872,910 shares of the company’s stock worth $395,427,000 after acquiring an additional 940,000 shares during the period. 99.77% of the stock is owned by institutional investors and hedge funds.

Teradyne Company Profile

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.