Teradyne (NASDAQ:TER) Shares Down 9.7% – Time to Sell?

Teradyne, Inc. (NASDAQ:TER) shares dropped 9.7% on Thursday. The company traded as low as $312.95 and last traded at $312.0320. 746,210 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 3,509,714 shares. The stock had previously closed at $345.49.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Analysts remain constructive on Teradyne ahead of earnings, citing strong AI-driven demand, expanding semiconductor-test opportunities, a favorable Q3 outlook and a history of earnings beats. Should You Buy, Sell, or Hold TER Stock Before Q3 Earnings Release?
• Positive Sentiment: Teradyne is being positioned as a potentially stronger AI-component investment than AMD because of its diversified AI exposure, semiconductor-test demand and expected growth potential. TER vs. AMD: Which AI Component Supplier Stock Is the Better Buy?
• Positive Sentiment: Teradyne Robotics and Sereact are expanding their partnership to combine Sereact’s physical-AI software with Universal Robots’ collaborative arms for warehouse tasks, including automated returns handling. The deployment of hundreds of systems could improve Teradyne’s exposure to logistics and industrial automation. How Teradyne, NVIDIA & Sereact Automate Retail Returns
• Neutral Sentiment: October 27 earnings are the next major catalyst. Investors will look for confirmation that AI-related semiconductor testing is offsetting broader industry risks and supporting the company’s upbeat outlook. Teradyne stock: Results date arrives October 27
• Negative Sentiment: TER sold off alongside chip and AI stocks as investors questioned whether the sector can sustain its rebound. Reports also cited component shortages and cleanroom capacity constraints that could limit semiconductor-equipment makers’ ability to meet demand through 2027. Teradyne slumps as tech sector falls

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. The Goldman Sachs Group reiterated a “buy” rating and set a $465.00 price target on shares of Teradyne in a research report on Tuesday, July 28th. Zacks Research lowered Teradyne from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Morgan Stanley raised their target price on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $550.00 target price on shares of Teradyne in a report on Wednesday, July 29th. Finally, Susquehanna boosted 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. Eleven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $396.80.

Teradyne Stock Up 0.0%

The company has a market capitalization of $48.29 billion, a price-to-earnings ratio of 42.37, a price-to-earnings-growth ratio of 0.62 and a beta of 1.75. The business has a 50-day moving average price of $373.22 and a 200-day moving average price of $374.76.

Teradyne (NASDAQ:TER) last released its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%. Teradyne’s revenue for the quarter was up 103.9% on a year-over-year basis. During the same quarter last year, the company posted $0.57 EPS. As a group, sell-side analysts predict that Teradyne, Inc. will post 9.11 EPS for the current year.

Teradyne Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were issued 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 dividend payout ratio (DPR) is presently 7.13%.

Insider Buying and Selling at Teradyne

In other news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total value of $1,365,120.00. Following the transaction, the chief executive officer directly owned 104,495 shares of the company’s stock, valued at $35,662,053.60. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,000 shares of company stock valued at $4,416,440 over the last quarter. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Teradyne

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Teradyne during the second quarter worth approximately $9,404,408,000. Andar Capital Management HK Ltd acquired a new position in Teradyne during the second quarter valued at approximately $37,800,000. Bank of America Corp DE bought a new position in shares of Teradyne in the second quarter valued at approximately $842,822,000. Legal & General Group Plc bought a new position in shares of Teradyne in the second quarter valued at approximately $656,058,000. Finally, Assenagon Asset Management S.A. raised its position in shares of Teradyne by 2,171.0% in the third quarter. Assenagon Asset Management S.A. now owns 1,074,459 shares of the company’s stock valued at $430,761,000 after purchasing an additional 1,027,146 shares during the period. Institutional investors and hedge funds own 99.77% of the company’s stock.

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.