Teradyne (NASDAQ:TER) Shares Gap Down – Should You Sell?

Posted by Brian Himes on Jul 7th, 2026

Teradyne, Inc. (NASDAQ:TER – Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $379.52, but opened at $354.06. Teradyne shares last traded at $345.55, with a volume of 874,612 shares.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on TER shares. Morgan Stanley set a $387.00 price objective on shares of Teradyne in a research report on Thursday, April 30th. Susquehanna lifted their target price on Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Weiss Ratings upgraded Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a research report on Monday, May 4th. Citigroup increased their price target on Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Finally, UBS Group raised their price target on Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $390.53.

Check Out Our Latest Stock Analysis on TER

Teradyne Trading Down 10.9%

The firm has a 50-day moving average price of $386.16 and a 200-day moving average price of $318.66. The company has a market capitalization of $52.95 billion, a price-to-earnings ratio of 62.61, a PEG ratio of 1.07 and a beta of 1.74.

Teradyne (NASDAQ:TER – Get Free Report) last announced 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. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.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 prior year, the firm posted $0.75 earnings per share. The company’s revenue was up 87.0% on a year-over-year basis. Equities research analysts predict 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. Shareholders of record on Thursday, May 21st were issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio is currently 9.63%.

Insider Activity

In other news, CEO Gregory Stephen Smith sold 8,597 shares of Teradyne stock in a transaction that occurred 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 owned 124,470 shares of the company’s stock, valued at $42,192,840.60. The trade was a 6.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the sale, the insider owned 15,066 shares in the company, 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 quarter, insiders sold 14,941 shares of company stock worth $5,444,112. Corporate insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TER. Integrated Wealth Concepts LLC grew its holdings in shares of Teradyne by 12.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 4,136 shares of the company’s stock worth $342,000 after acquiring an additional 468 shares during the last quarter. Caxton Associates LLP purchased a new stake in shares of Teradyne during the first quarter valued at $297,000. Cresset Asset Management LLC boosted its position in shares of Teradyne by 11.6% in the 2nd quarter. Cresset Asset Management LLC now owns 6,759 shares of the company’s stock valued at $608,000 after purchasing an additional 702 shares during the period. NewEdge Advisors LLC boosted its position in shares of Teradyne by 467.1% in the 2nd quarter. NewEdge Advisors LLC now owns 3,408 shares of the company’s stock valued at $306,000 after purchasing an additional 2,807 shares during the period. Finally, Treasurer of the State of North Carolina increased its stake in Teradyne by 5.1% in the 2nd quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company’s stock worth $6,755,000 after purchasing an additional 3,651 shares in the last quarter. Institutional investors own 99.77% of the company’s stock.

Teradyne Company Profile

(Get Free Report)

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.