Teradyne (NASDAQ:TER) Shares Gap Up – Should You Buy?

Teradyne, Inc. (NASDAQ:TER)’s share price 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.

Wall Street Analysts Forecast Growth

TER has been the subject of a number of research reports. StockNews.com raised shares of Teradyne from a “sell” rating to a “hold” rating in a research note on Sunday, October 27th. Robert W. Baird lowered their target price on Teradyne from $140.00 to $133.00 and set an “outperform” rating on the stock in a research note on Friday, October 25th. Northland Securities cut their price target on Teradyne from $126.00 to $117.00 and set a “market perform” rating for the company in a research note on Friday, October 25th. Stifel Nicolaus reduced their price target on Teradyne from $140.00 to $125.00 and set a “hold” rating for the company in a report on Friday, October 25th. Finally, JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $145.00 to $158.00 in a research report on Monday. Five research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $147.25.

Teradyne Stock Down 1.1 %

The business has a 50-day moving average price of $115.15 and a 200-day moving average price of $129.38. The firm has a market capitalization of $20.85 billion, a P/E ratio of 40.64, a PEG ratio of 2.66 and a beta of 1.51.

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

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Shareholders of record on Monday, November 25th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 0.37%. The ex-dividend date of this dividend is Monday, November 25th. Teradyne’s dividend payout ratio is 15.24%.

Teradyne announced that its board has authorized a stock repurchase plan on Monday, November 11th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 0.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Teradyne

In related 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 directly 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Gregory Stephen Smith sold 3,080 shares of the business’s stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $132.80, for a total value of $409,024.00. Following the completion of the transaction, the chief executive officer now directly owns 80,736 shares in the company, valued at approximately $10,721,740.80. This represents a 3.67 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 4,494 shares of company stock valued at $596,803. Corporate insiders own 0.18% of the company’s stock.

Institutional Trading of Teradyne

Hedge funds have recently modified their holdings of the stock. Alkeon Capital Management LLC lifted its position in Teradyne by 189.6% during the 3rd quarter. Alkeon Capital Management LLC now owns 1,144,017 shares of the company’s stock valued at $153,218,000 after purchasing an additional 749,003 shares during the period. Holocene Advisors LP acquired a new position in Teradyne in the third quarter valued at approximately $91,129,000. Sumitomo Mitsui Trust Group Inc. lifted its holdings in 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. State Street Corp boosted its stake in 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 last quarter. Finally, Eagle Asset Management Inc. raised its position in shares of Teradyne by 70.8% during the 3rd quarter. Eagle Asset Management Inc. now owns 742,207 shares of the company’s stock valued at $99,404,000 after acquiring an additional 307,724 shares during the last quarter. 99.77% of the stock is owned by institutional investors.

Teradyne Company Profile

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.