Teradyne (NASDAQ:TER) Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of Teradyne (NASDAQ:TER – Free Report) from a buy rating to a hold rating in a research report released on Monday morning,Wall Street Zen reports.

Several other equities research analysts have also recently issued reports on the company. UBS Group lifted their target price on Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Robert W. Baird reissued a “neutral” rating and set a $420.00 price target on shares of Teradyne in a research note on Friday, August 21st. The Goldman Sachs Group restated a “buy” rating and set a $465.00 price target on shares of Teradyne in a report on Tuesday, July 28th. Morgan Stanley lifted their price objective on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Finally, Weiss Ratings cut Teradyne from a “buy (b)” rating to a “hold (c+)” rating in a report on Thursday, September 3rd. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $396.80.

Get Our Latest Report on Teradyne

Teradyne Stock Performance

Shares of NASDAQ:TER opened at $400.91 on Monday. The firm has a market cap of $62.68 billion, a price-to-earnings ratio of 54.99, a P/E/G ratio of 0.81 and a beta of 1.78. The firm has a fifty day moving average price of $372.26 and a 200 day moving average price of $366.43. Teradyne has a fifty-two week low of $131.75 and a fifty-two week high of $487.91.

Teradyne (NASDAQ:TER – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. Teradyne’s revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.57 EPS. As a group, research analysts predict that Teradyne will post 9.11 earnings per share for the current year.

Teradyne Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a dividend of $0.13 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. Teradyne’s payout ratio is currently 7.13%.

Insiders Place Their Bets

In other news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $337.83, for a total value of $1,351,320.00. Following the sale, the chief executive officer owned 108,495 shares of the company’s stock, valued at approximately $36,652,865.85. This represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On Teradyne

A number of institutional investors and hedge funds have recently modified their holdings of the business. Carolina Wealth Advisors LLC lifted its position in shares of Teradyne by 42.5% during the second quarter. Carolina Wealth Advisors LLC now owns 114 shares of the company’s stock worth $55,000 after purchasing an additional 34 shares during the last quarter. Vestor Capital LLC lifted its holdings in shares of Teradyne by 15.4% in the 1st quarter. Vestor Capital LLC now owns 285 shares of the company’s stock worth $85,000 after buying an additional 38 shares during the period. Ashton Thomas Private Wealth LLC lifted its stake in Teradyne by 5.8% in the second quarter. Ashton Thomas Private Wealth LLC now owns 727 shares of the company’s stock worth $352,000 after acquiring an additional 40 shares during the period. Whittier Trust Co. lifted its position in shares of Teradyne by 5.5% in the 1st quarter. Whittier Trust Co. now owns 827 shares of the company’s stock worth $261,000 after purchasing an additional 43 shares during the period. Finally, Contravisory Investment Management Inc. boosted its position in Teradyne by 1.0% during the 2nd quarter. Contravisory Investment Management Inc. now owns 4,661 shares of the company’s stock valued at $2,255,000 after acquiring an additional 44 shares in the last quarter. 99.77% of the stock is owned by institutional investors.

Key Teradyne News

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 used in AI data centers. Its higher interface speeds and greater parallelism could help the company benefit from growing AI and high-performance-computing test requirements. Teradyne Debuts Magnum E2 for AI Memory Testing
  • Positive Sentiment: Wall Street’s average brokerage recommendation remains equivalent to Buy, indicating broadly constructive sentiment toward Teradyne’s semiconductor-testing, robotics and AI exposure. However, the coverage also notes that optimistic sell-side recommendations may be less reliable when analyst ratings are heavily skewed positive. Is Teradyne a Buy as Wall Street Analysts Look Optimistic?
  • Neutral Sentiment: Recent strategic moves—including an AI-focused semiconductor test center with GS Microelectronics U.S., the Iris 100 microLED optical test platform and an India expansion—support Teradyne’s longer-term growth narrative, but the near-term earnings impact remains uncertain. Teradyne AI-Optical Test Push and India Expansion
  • Negative Sentiment: Zacks Research downgraded Teradyne from “strong buy” to “hold,” potentially reducing momentum around the stock after its sharp advance and reinforcing concerns that expectations may already be high. Zacks Downgrade and Analyst Ratings
  • Negative Sentiment: A Teradyne director sold 400 shares following a gain of more than 200% over the past year. Although the transaction is small relative to the company’s size, insider selling can add to near-term profit-taking concerns. Teradyne Director Sells Shares

About Teradyne

(Get Free Report)

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.

Further Reading

Analyst Recommendations for Teradyne (NASDAQ:TER)

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