Teradyne (NASDAQ:TER) Shares Gap Up – What’s Next?

Teradyne, Inc. (NASDAQ:TER)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $322.36, but opened at $335.22. Teradyne shares last traded at $344.1390, with a volume of 417,588 shares.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on TER. Stifel Nicolaus raised their target price on Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a research report on Tuesday, April 28th. The Goldman Sachs Group upped their price target on Teradyne from $350.00 to $465.00 and gave the company a “buy” rating in a report on Monday, July 6th. Morgan Stanley set a $387.00 price target on shares of Teradyne in a research note on Thursday, April 30th. Bank of America boosted their price objective on shares of Teradyne from $365.00 to $525.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Finally, Susquehanna increased their target price on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Teradyne has a consensus rating of “Moderate Buy” and a consensus price target of $390.53.

Teradyne Price Performance

The stock has a 50 day simple moving average of $382.06 and a two-hundred day simple moving average of $328.08. The company has a market cap of $53.36 billion, a PE ratio of 63.01, a PEG ratio of 0.93 and a beta of 1.74.

Teradyne (NASDAQ:TER) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating the consensus estimate of $2.11 by $0.45. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.20 billion. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The company’s revenue was up 87.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.75 earnings per share. As a group, equities analysts anticipate that Teradyne, Inc. will post 7.2 EPS for the current fiscal year.

Teradyne Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were paid a dividend of $0.13 per share. The ex-dividend date was Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. This is an increase from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio (DPR) is currently 9.63%.

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Stephen Smith sold 8,597 shares of Teradyne stock in a transaction on Friday, May 15th. The shares were sold at an average price of $338.98, for a total value of $2,914,211.06. Following the transaction, the chief executive officer directly owned 124,470 shares in the company, valued at approximately $42,192,840.60. The trade was a 6.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 1,008 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the sale, the insider directly owned 15,066 shares of the company’s stock, valued at $5,203,344.42. The trade was a 6.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last three months, insiders have sold 14,941 shares of company stock valued at $5,444,112. Insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Teradyne

Several institutional investors have recently added to or reduced their stakes in the stock. Regent Peak Wealth Advisors LLC acquired a new stake in Teradyne during the 2nd quarter worth approximately $268,000. Insight Wealth Strategies LLC purchased a new position in shares of Teradyne in the 2nd quarter valued at approximately $7,826,000. Tema ETFs LLC increased its holdings in shares of Teradyne by 6.9% in the second quarter. Tema ETFs LLC now owns 2,244 shares of the company’s stock valued at $1,086,000 after purchasing an additional 145 shares during the period. Generali Investments Management Co LLC increased its holdings in shares of Teradyne by 525.1% in the second quarter. Generali Investments Management Co LLC now owns 2,769 shares of the company’s stock valued at $1,340,000 after purchasing an additional 2,326 shares during the period. Finally, Handelsbanken Fonder AB raised its stake in shares of Teradyne by 2.6% during the second quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company’s stock worth $61,927,000 after purchasing an additional 3,250 shares during the last quarter. Institutional investors and hedge funds 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.