Teradyne (NASDAQ:TER) Shares Gap Down – Should You Sell?

Shares of Teradyne, Inc. (NASDAQ:TER) gapped down before the market opened on Tuesday . The stock had previously closed at $379.52, but opened at $354.06. Teradyne shares last traded at $345.55, with a volume of 874,612 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on TER shares. Morgan Stanley set a $387.00 target price on shares of Teradyne in a research report on Thursday, April 30th. Citigroup upped their price target on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Bank of America raised their price objective on shares of Teradyne from $365.00 to $525.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Stifel Nicolaus lifted their price objective on shares of Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a research report on Tuesday, April 28th. Finally, Evercore set a $370.00 target price on shares of Teradyne in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, Teradyne currently has an average rating of “Moderate Buy” and an average target price of $390.53.

Teradyne Stock Performance

The company has a 50 day simple moving average of $386.16 and a two-hundred day simple moving average of $318.66. The company has a market cap of $52.95 billion, a PE ratio of 62.61, a PEG ratio of 1.07 and a beta of 1.74.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, April 29th. The company reported $2.56 earnings per share for the quarter, beating analysts’ consensus estimates of $2.11 by $0.45. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.20 billion. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The firm’s quarterly revenue was up 87.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.75 EPS. As a group, analysts expect that Teradyne, Inc. will post 7.2 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid a $0.13 dividend. The ex-dividend date was Thursday, May 21st. This represents a $0.52 annualized dividend and a yield of 0.2%. This is a boost from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio (DPR) is currently 9.63%.

Insider Buying and Selling at Teradyne

In other Teradyne news, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares of the company’s stock, valued at $2,894,304. This trade represents a 8.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the transaction, the insider owned 15,066 shares in the company, valued at approximately $5,203,344.42. This represents a 6.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last quarter, insiders have sold 14,941 shares of company stock worth $5,444,112. 0.19% of the stock is currently owned by company insiders.

Institutional Trading of Teradyne

A number of institutional investors have recently bought and sold shares of TER. Caitong International Asset Management Co. Ltd acquired a new position in Teradyne in the 4th quarter worth about $28,000. McIlrath & Eck LLC purchased a new stake in shares of Teradyne during the 1st quarter worth about $30,000. CYBER HORNET ETFs LLC acquired a new stake in shares of Teradyne during the 2nd quarter valued at about $35,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Teradyne in the 4th quarter valued at approximately $37,000. Finally, KERR FINANCIAL PLANNING Corp bought a new stake in shares of Teradyne in the 3rd quarter valued at approximately $41,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

Teradyne Company Profile

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.