Teradyne (NASDAQ:TER) Shares Gap Up – Here’s Why

Shares of Teradyne, Inc. (NASDAQ:TER) gapped up prior to trading on Monday . The stock had previously closed at $123.22, but opened at $127.92. Teradyne shares last traded at $127.03, with a volume of 360,886 shares trading hands.

Analysts Set New Price Targets

TER has been the topic of several recent analyst reports. Robert W. Baird reduced their price objective on shares of Teradyne from $140.00 to $133.00 and set an “outperform” rating on the stock in a research note on Friday, October 25th. Craig Hallum reduced their price target on shares of Teradyne from $124.00 to $111.00 and set a “hold” rating on the stock in a research report on Friday, October 25th. Northland Securities dropped their price objective on Teradyne from $126.00 to $117.00 and set a “market perform” rating on the stock in a research note on Friday, October 25th. Evercore ISI lifted their target price on Teradyne from $130.00 to $145.00 and gave the stock an “overweight” rating in a report on Wednesday, October 9th. Finally, JPMorgan Chase & Co. upgraded Teradyne from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $145.00 to $158.00 in a report on Monday. Five research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $147.25.

Teradyne Price Performance

The business’s 50-day moving average is $115.15 and its two-hundred day moving average is $129.38. The firm has a market cap of $20.85 billion, a P/E ratio of 40.64, a P/E/G ratio of 2.66 and a beta of 1.51.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Wednesday, October 23rd. The company reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.78 by $0.12. Teradyne had a return on equity of 18.56% and a net margin of 18.75%. The company had revenue of $737.30 million during the quarter, compared to analysts’ expectations of $716.40 million. During the same quarter last year, the company earned $0.80 EPS. Teradyne’s revenue for the quarter was up 4.8% compared to the same quarter last year. Equities research analysts predict that Teradyne, Inc. will post 3.17 EPS for the current year.

Teradyne Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Monday, November 25th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.37%. The ex-dividend date is Monday, November 25th. Teradyne’s payout ratio is presently 15.24%.

Teradyne declared that its Board of Directors has authorized a share buyback program on Monday, November 11th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 0.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Teradyne news, insider Richard John Burns sold 789 shares of the firm’s stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $132.80, for a total transaction of $104,779.20. Following the completion of the sale, the insider now owns 21,864 shares of the company’s stock, valued at $2,903,539.20. This trade represents a 3.48 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Mercedes Johnson sold 625 shares of the company’s stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $132.80, for a total transaction of $83,000.00. Following the completion of the transaction, the director now owns 15,893 shares in the company, valued at approximately $2,110,590.40. This represents a 3.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 4,494 shares of company stock valued at $596,803. 0.18% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently made changes to their positions in TER. State Street Corp boosted its position in shares of Teradyne by 5.4% in the third quarter. State Street Corp now owns 6,880,148 shares of the company’s stock valued at $921,458,000 after acquiring an additional 350,002 shares during the period. Kayne Anderson Rudnick Investment Management LLC boosted its holdings in Teradyne by 1.3% in the 2nd quarter. Kayne Anderson Rudnick Investment Management LLC now owns 4,603,123 shares of the company’s stock valued at $682,597,000 after purchasing an additional 57,989 shares during the period. Geode Capital Management LLC grew its position in shares of Teradyne by 5.5% during the 3rd quarter. Geode Capital Management LLC now owns 4,011,131 shares of the company’s stock worth $535,484,000 after purchasing an additional 209,868 shares in the last quarter. Van ECK Associates Corp raised its position in shares of Teradyne by 6.3% in the third quarter. Van ECK Associates Corp now owns 3,082,064 shares of the company’s stock valued at $383,501,000 after buying an additional 183,721 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of Teradyne by 18.2% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,432,722 shares of the company’s stock valued at $325,814,000 after buying an additional 374,522 shares during the period. Institutional investors own 99.77% of the company’s stock.

About Teradyne

Teradyne, Inc designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications.