Teradyne (NASDAQ:TER) Stock Price Down 6.8% – Time to Sell?

Teradyne, Inc. (NASDAQ:TER) dropped 6.8% during trading on Wednesday. The company traded as low as $245.94 and last traded at $250.99. Approximately 4,428,444 shares were traded during trading, an increase of 24% from the average session volume of 3,571,852 shares. The stock had previously closed at $269.35.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: A recent outlook highlights demand from AI infrastructure, semiconductor testing growth and robotics momentum as drivers behind Teradyne’s reported 53% one-year gain. Should You Buy, Sell, or Hold TER Stock After a 53% Rise in One Year?
• Positive Sentiment: UBS sees 61% upside even after Teradyne shares lost 17% in a week, signaling that the firm views the pullback as potentially creating an attractive entry point. Teradyne Lost 17% in a Week. UBS Still Sees 61% Upside
• Positive Sentiment: Two growth-stock assessments point to Teradyne’s business growth attributes as support for potential outperformance. Separately, an article highlights robotics profitability as broadening its AI-related growth profile. Teradyne (TER) is an Incredible Growth Stock: 3 Reasons Why Teradyne stock: Robotics profitability broadens AI growth profile
• Neutral Sentiment: A comparison of Teradyne and Flex as value stocks was published, but the available summary does not indicate which company it favors or provide a specific valuation catalyst for TER. FLEX or TER: Which Is the Better Value Stock Right Now?
• Negative Sentiment: The reported 17% weekly drop underscores near-term selling pressure and volatility, despite UBS’s bullish price view. The headlines do not specify what triggered the decline. Teradyne Lost 17% in a Week. UBS Still Sees 61% Upside

Analyst Ratings Changes

TER has been the subject of a number of research analyst reports. Weiss Ratings raised shares of Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 29th. Morgan Stanley lifted their price target on Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Evercore reissued an “outperform” rating and issued a $420.00 price target on shares of Teradyne in a research note on Thursday, July 30th. Robert W. Baird lowered Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price objective on the stock. in a report on Friday, August 21st. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price objective on shares of Teradyne in a research note on Wednesday, July 29th. One equities research 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. According to data from MarketBeat, Teradyne presently has an average rating of “Moderate Buy” and a consensus price target of $405.86.

Teradyne Stock Down 6.8%

The company has a market capitalization of $39.18 billion, a P/E ratio of 28.82, a PEG ratio of 0.51 and a beta of 1.73. The firm has a 50-day moving average price of $360.00 and a two-hundred day moving average price of $348.75.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.20. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter last year, the company earned $0.85 EPS. The company’s quarterly revenue was up 69.8% on a year-over-year basis. On average, analysts predict that Teradyne, Inc. will post 9.36 EPS for the current fiscal year.

Teradyne Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a dividend of $0.13 per share. The ex-dividend date was Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. Teradyne’s dividend payout ratio is 5.97%.

Insider Transactions at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the firm’s 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 completion of the sale, the chief executive officer 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 sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 12,000 shares of company stock worth $4,416,440. 0.19% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Community Financial Services Group LLC acquired a new position in Teradyne during the second quarter valued at approximately $29,000. Next Level Wealth Planning LLC acquired a new position in shares of Teradyne in the 3rd quarter valued at $27,000. Elevation Wealth Partners LLC grew its holdings in shares of Teradyne by 1,320.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after buying an additional 66 shares during the period. Mcdonald Partners LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at $36,000. Finally, Hilltop National Bank bought a new stake in shares of Teradyne in the 2nd quarter valued at $41,000. 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.