Teradyne (NASDAQ:TER) Trading Up 10.3% – Here’s What Happened

Teradyne, Inc. (NASDAQ:TER) was up 10.3% on Tuesday . The company traded as high as $409.72 and last traded at $403.56. Approximately 4,132,930 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 3,882,840 shares. The stock had previously closed at $365.80.

Key Stories Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s second-quarter earnings call highlighted record results, broad exposure to AI infrastructure and expectations for multiyear growth. Management also pointed to potential market-share gains and an expanding semiconductor test market. TER Q2 Earnings Call Centers on AI-Led Multiyear Growth
• Positive Sentiment: Analysts remain constructive: Northland Securities raised its forecast for Teradyne’s third-quarter earnings per share, adding to confidence in near-term results. Teradyne Q3 EPS Forecast Increased by Northland Securities
• Positive Sentiment: A broader rally in chip and robotics stocks is providing a favorable backdrop for Teradyne, as investors rotate toward semiconductor-equipment companies and away from some megacap technology leaders. Today’s Trade Is to Buy Chips and Sell the Magnificent 7
• Neutral Sentiment: Teradyne is trading at approximately 10.36 times sales, a premium valuation that reflects strong AI, chip-testing and robotics growth. Investors are weighing whether that growth can justify the stock’s already elevated expectations. Teradyne Is Overvalued at 10.36X PS: Should You Still Buy the Stock?
• Negative Sentiment: The valuation is a significant risk: investors are paying a substantial premium for Teradyne, leaving less room for disappointment if AI-related demand, semiconductor testing growth or robotics adoption slows. A comparison with KLA also underscores how expensive expectations have become across chip-equipment stocks. How KLA Went From Cheaper Than Teradyne to the Pricier Stock

Analyst Ratings Changes

Several research firms recently issued reports on TER. Morgan Stanley upped their price target on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Evercore reaffirmed an “outperform” rating and issued a $420.00 price objective on shares of Teradyne in a report on Thursday, July 30th. Citigroup boosted their target price on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. UBS Group increased their target price on shares of Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Finally, Susquehanna raised their price target on shares of Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, Teradyne has an average rating of “Moderate Buy” and an average target price of $396.80.

Teradyne Price Performance

The company has a market capitalization of $63.17 billion, a P/E ratio of 55.36, a price-to-earnings-growth ratio of 0.76 and a beta of 1.78. The company has a fifty day moving average price of $382.76 and a 200 day moving average price of $338.83.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results on Tuesday, July 28th. The company reported $2.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.38. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The business’s revenue was up 103.9% on a year-over-year basis. During the same quarter last year, the business posted $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. On average, equities research analysts predict that Teradyne, Inc. will post 8.86 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were given a $0.13 dividend. This is a boost from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne’s dividend payout ratio is 7.13%.

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $423.03, for a total value of $1,692,120.00. Following the sale, the chief executive officer directly owned 120,470 shares in the company, valued at approximately $50,962,424.10. This trade represents a 3.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the transaction, the insider directly owned 15,722 shares of the company’s stock, valued at approximately $5,581,310. This trade represents a 4.01% decrease in their position. 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. Insiders have sold 14,941 shares of company stock valued at $5,444,112 over the last three months. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of TER. State Street Corp increased its stake in shares of Teradyne by 0.9% in the fourth quarter. State Street Corp now owns 7,078,635 shares of the company’s stock valued at $1,370,141,000 after purchasing an additional 60,986 shares during the period. Ameriprise Financial Inc. boosted its position in shares of Teradyne by 3.0% during the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company’s stock worth $442,413,000 after buying an additional 143,058 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of Teradyne by 18.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock worth $813,640,000 after buying an additional 659,273 shares during the period. Invesco Ltd. grew its holdings in Teradyne by 3.5% in the 3rd quarter. Invesco Ltd. now owns 2,959,330 shares of the company’s stock worth $407,322,000 after buying an additional 99,864 shares in the last quarter. Finally, Morgan Stanley grew its holdings in Teradyne by 1.9% in the 4th quarter. Morgan Stanley now owns 2,442,014 shares of the company’s stock worth $472,677,000 after buying an additional 45,089 shares in the last quarter. 99.77% of the stock is owned by institutional investors and hedge funds.

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.