Teradyne (NASDAQ:TER) Reaches New 1-Year High – Here’s Why

Teradyne, Inc. (NASDAQ:TER)’s stock price hit a new 52-week high on Monday . The company traded as high as $425.89 and last traded at $431.1210, with a volume of 35388 shares. The stock had previously closed at $403.20.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on TER shares. Weiss Ratings upgraded Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, May 4th. UBS Group boosted their target price on Teradyne from $325.00 to $440.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Evercore set a $370.00 target price on Teradyne in a research note on Thursday, April 30th. Stifel Nicolaus boosted their target price on Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a research note on Tuesday, April 28th. Finally, Cantor Fitzgerald boosted 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 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’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $339.80.

Teradyne Stock Up 6.3%

The company has a 50-day moving average price of $364.24 and a two-hundred day moving average price of $292.13. The stock has a market capitalization of $67.07 billion, a P/E ratio of 79.38, a PEG ratio of 1.66 and a beta of 1.79.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results 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 firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.20 billion. During the same period in the prior year, the business posted $0.75 earnings per share. The company’s revenue was up 87.0% on a year-over-year basis. On average, sell-side analysts expect that Teradyne, Inc. will post 7.09 earnings per share for the current year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were given a dividend of $0.13 per share. This is a boost from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Thursday, May 21st. Teradyne’s dividend payout ratio (DPR) is currently 9.63%.

Insider Buying and Selling

In related news, VP Ryan Driscoll sold 680 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the transaction, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. The trade was a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 8,597 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was 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 approximately $42,192,840.60. The trade was a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 10,941 shares of company stock worth $3,751,992 over the last ninety days. 0.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Teradyne

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. ARK Investment Management LLC increased its holdings in shares of Teradyne by 25.2% in the 3rd quarter. ARK Investment Management LLC now owns 2,722,327 shares of the company’s stock worth $374,701,000 after purchasing an additional 548,140 shares in the last quarter. Nordea Investment Management AB increased its holdings in shares of Teradyne by 656.4% in the 4th quarter. Nordea Investment Management AB now owns 125,312 shares of the company’s stock worth $24,554,000 after purchasing an additional 108,745 shares in the last quarter. Gouws Capital LLC increased its holdings in shares of Teradyne by 96.0% in the 4th quarter. Gouws Capital LLC now owns 15,323 shares of the company’s stock worth $2,966,000 after purchasing an additional 7,505 shares in the last quarter. Aspen Wealth Strategies LLC bought a new stake in shares of Teradyne in the 3rd quarter worth $577,000. Finally, Assenagon Asset Management S.A. increased its holdings in shares of Teradyne by 3,233.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 910,023 shares of the company’s stock worth $176,144,000 after purchasing an additional 882,723 shares in the last quarter. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

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.