Teradyne (NASDAQ:TER) Stock Sees Unusually High Put Option Buying

Teradyne, Inc. (NASDAQ:TER) was the target of some unusual options trading on Friday. Investors purchased 15,675 put options on the company. This represents an increase of approximately 101% compared to the typical volume of 7,807 put options.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently modified their holdings of TER. Leeward Financial Partners LLC acquired a new stake in Teradyne in the 2nd quarter valued at $3,735,000. Legal & General Group Plc purchased a new position in Teradyne during the second quarter valued at $656,058,000. B. Metzler seel. Sohn & Co. AG purchased a new position in Teradyne during the second quarter valued at $4,826,000. Handelsbanken Fonder AB grew its position in shares of Teradyne by 2.6% in the second quarter. Handelsbanken Fonder AB now owns 127,990 shares of the company’s stock valued at $61,927,000 after purchasing an additional 3,250 shares during the period. Finally, Baird Financial Group Inc. grew its position in shares of Teradyne by 147.2% in the second quarter. Baird Financial Group Inc. now owns 53,029 shares of the company’s stock valued at $25,658,000 after purchasing an additional 31,579 shares during the period. 99.77% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: AI demand is driving substantial growth. 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. Memory and integrated systems testing benefited from accelerating AI-chip and data-center demand. Teradyne Q3 Earnings Call Highlights AI Demand and 2027 Growth Plans
• Positive Sentiment: Management sees additional growth ahead. Teradyne highlighted expanding compute programs, record memory-test revenue and a potential compute-related ramp by mid-2027. The company expects fourth-quarter revenue of $1.25 billion to $1.35 billion and is investing in capacity to support demand. Teradyne expects Q4 2026 revenue of $1.25B-$1.35B
• Positive Sentiment: Northland raised its full-year 2026 EPS forecast to $9.40 from $9.34, above the broader consensus estimate of $9.17. It also lifted its second-quarter 2027 estimate to $2.63 from $2.50, signaling confidence in longer-term earnings growth.
• Neutral Sentiment: Analyst estimates were mixed. Northland lowered its first-quarter 2027 EPS forecast to $2.27 from $2.59 and trimmed its fourth-quarter 2026 estimate slightly to $2.10 from $2.11. These reductions partially offset the increases to full-year 2026 and second-quarter 2027 estimates.
• Negative Sentiment: Near-term guidance and margins are limiting enthusiasm. Although Teradyne delivered an earnings beat, commentary indicated margin pressure from capacity investments, while the fourth-quarter outlook did not appear strong enough to match elevated expectations. As a result, shares declined following the earnings release. Teradyne stock falls despite Q3 earnings beat
• Negative Sentiment: Valuation remains a concern. A recent analysis said Teradyne’s powerful multiyear rally and exposure to AI may already reflect substantial future cash-flow growth, increasing the risk of profit-taking if execution or guidance disappoints. UBS maintained a “Buy” rating but lowered its price target to $430 from $485. Teradyne Stock May Be Above Fair Value Despite Record AI Demand

Teradyne Stock Performance

NASDAQ:TER traded down $27.22 during mid-day trading on Friday, hitting $269.01. 1,912,117 shares of the company’s stock traded hands, compared to its average volume of 3,533,655. The company has a fifty day moving average of $366.38 and a 200 day moving average of $348.15. Teradyne has a twelve month low of $151.52 and a twelve month high of $487.91. The company has a market capitalization of $42.06 billion, a P/E ratio of 30.94, a P/E/G ratio of 0.63 and a beta of 1.75.

Teradyne (NASDAQ:TER) last posted its quarterly earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the company posted $0.85 earnings per share. The business’s quarterly revenue was up 69.8% on a year-over-year basis. On average, research analysts expect that Teradyne will post 9.17 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

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

Analyst Ratings Changes

TER has been the topic of several recent analyst reports. Robert W. Baird cut shares of Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price objective on the stock. in a research report on Friday, August 21st. Wall Street Zen raised Teradyne from a “hold” rating to a “buy” rating in a research note on Saturday, October 24th. Evercore restated an “outperform” rating and issued a $420.00 price target on shares of Teradyne in a research report on Thursday, July 30th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Finally, The Goldman Sachs Group set a $440.00 price objective on Teradyne in a research report on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Teradyne currently has a consensus rating of “Moderate Buy” and a consensus price target of $405.86.

Teradyne Company Profile

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.