Teradyne (NASDAQ:TER) Shares Gap Down – Here’s What Happened

Teradyne, Inc. (NASDAQ:TER) gapped down before the market opened on Tuesday . The stock had previously closed at $138.40, but opened at $135.00. Teradyne shares last traded at $130.96, with a volume of 598,834 shares.

Wall Street Analysts Forecast Growth

TER has been the topic of several recent analyst reports. Northland Securities upgraded shares of Teradyne from a “market perform” rating to an “outperform” rating and increased their price target for the company from $117.00 to $154.00 in a research note on Monday, January 6th. Morgan Stanley lowered shares of Teradyne from an “equal weight” rating to an “underweight” rating and lowered their price objective for the company from $121.00 to $117.00 in a research report on Tuesday. Stifel Nicolaus reduced their target price on shares of Teradyne from $140.00 to $125.00 and set a “hold” rating for the company in a research note on Friday, October 25th. StockNews.com upgraded shares of Teradyne from a “sell” rating to a “hold” rating in a report on Sunday, October 27th. Finally, Northland Capmk raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 6th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $147.77.

Teradyne Stock Performance

The company has a market capitalization of $21.68 billion, a PE ratio of 42.36, a P/E/G ratio of 2.30 and a beta of 1.46. The business has a fifty day moving average price of $121.85 and a 200 day moving average price of $126.85.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, October 23rd. The company reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.78 by $0.12. Teradyne had a net margin of 18.75% and a return on equity of 18.56%. The business had revenue of $737.30 million for the quarter, compared to the consensus estimate of $716.40 million. During the same quarter last year, the firm posted $0.80 EPS. The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. Research analysts forecast that Teradyne, Inc. will post 3.17 earnings per share for the current fiscal year.

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Shareholders of record on Monday, November 25th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 0.36%. The ex-dividend date was Monday, November 25th. Teradyne’s dividend payout ratio is presently 15.24%.

Teradyne declared that its board has approved a share repurchase 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 shares through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other news, CEO Gregory Stephen Smith sold 3,080 shares of the stock in a transaction that occurred on Friday, January 3rd. The stock was sold at an average price of $130.00, for a total transaction of $400,400.00. Following the completion of the transaction, the chief executive officer now directly owns 74,660 shares in the company, valued at approximately $9,705,800. This represents a 3.96 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.18% of the company’s stock.

Institutional Trading of Teradyne

Institutional investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP grew its stake in Teradyne by 1.9% in the second quarter. Dimensional Fund Advisors LP now owns 861,030 shares of the company’s stock worth $127,684,000 after purchasing an additional 15,907 shares in the last quarter. Benjamin F. Edwards & Company Inc. grew its position in shares of Teradyne by 206.8% in the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 8,934 shares of the company’s stock worth $1,325,000 after acquiring an additional 6,022 shares in the last quarter. Profund Advisors LLC increased its holdings in shares of Teradyne by 15.6% in the 2nd quarter. Profund Advisors LLC now owns 14,095 shares of the company’s stock valued at $2,090,000 after acquiring an additional 1,897 shares during the last quarter. ProShare Advisors LLC raised its position in shares of Teradyne by 12.5% during the 2nd quarter. ProShare Advisors LLC now owns 50,339 shares of the company’s stock valued at $7,465,000 after acquiring an additional 5,608 shares in the last quarter. Finally, Frank Rimerman Advisors LLC bought a new position in Teradyne during the second quarter worth $294,000. 99.77% of the stock is owned by institutional investors and hedge funds.

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.