Teradyne (NASDAQ:TER) Shares Gap Up – Should You Buy?

Teradyne, Inc. (NASDAQ:TER) gapped up prior to trading on Thursday . The stock had previously closed at $351.57, but opened at $379.24. Teradyne shares last traded at $376.8070, with a volume of 566,661 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on TER shares. Evercore set a $370.00 price objective on shares of Teradyne in a report on Thursday, April 30th. Weiss Ratings upgraded shares of Teradyne from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, May 4th. Cantor Fitzgerald raised their target price on shares of Teradyne from $400.00 to $550.00 and gave the stock an “overweight” rating in a research report on Monday, June 29th. Stifel Nicolaus lifted their price target on shares of Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a research note on Tuesday, April 28th. Finally, Citigroup boosted their price target on Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Teradyne has a consensus rating of “Moderate Buy” and a consensus target price of $390.53.

Teradyne Price Performance

The business has a 50-day moving average of $384.37 and a two-hundred day moving average of $322.35. The company has a market cap of $56.29 billion, a P/E ratio of 66.59, a P/E/G ratio of 1.05 and a beta of 1.74.

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

Teradyne Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.1%. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. Teradyne’s payout ratio is 9.63%.

Insiders Place Their Bets

In other news, VP Ryan Driscoll sold 680 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the transaction, the vice president directly owned 7,665 shares of the company’s stock, valued at approximately $2,894,304. This represents a 8.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible 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 stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total value of $348,132.96. Following the sale, the insider owned 15,066 shares of the company’s stock, valued at approximately $5,203,344.42. This represents a 6.27% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last three months, insiders have sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Teradyne

Institutional investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC raised its position 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 valued at $342,000 after purchasing an additional 468 shares during the last quarter. Caxton Associates LLP acquired a new position in Teradyne during the 1st quarter valued at approximately $297,000. Cresset Asset Management LLC increased its stake in Teradyne by 11.6% during 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 in the last quarter. NewEdge Advisors LLC raised its holdings in shares of Teradyne by 467.1% in the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company’s stock worth $306,000 after buying an additional 2,807 shares during the last quarter. Finally, Treasurer of the State of North Carolina raised its holdings in shares of Teradyne by 5.1% in the second quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company’s stock worth $6,755,000 after buying an additional 3,651 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company’s stock.

Teradyne Company Profile

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.