Teradyne, Inc. (NASDAQ:TER) to Issue $0.12 Quarterly Dividend

Teradyne, Inc. (NASDAQ:TER) announced a quarterly dividend on Monday, November 11th,RTT News reports. Investors of record on Monday, November 25th will be paid a dividend of 0.12 per share on Wednesday, December 18th. This represents a $0.48 dividend on an annualized basis and a yield of 0.44%. The ex-dividend date of this dividend is Monday, November 25th.

Teradyne has raised its dividend by an average of 3.2% per year over the last three years. Teradyne has a dividend payout ratio of 11.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Teradyne to earn $4.10 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 11.7%.

Teradyne Price Performance

Shares of NASDAQ:TER opened at $108.21 on Friday. Teradyne has a 1-year low of $90.24 and a 1-year high of $163.21. The firm has a fifty day moving average price of $120.00 and a 200 day moving average price of $131.63. The stock has a market cap of $17.62 billion, a P/E ratio of 34.35, a P/E/G ratio of 2.28 and a beta of 1.52.

Teradyne (NASDAQ:TER) last released its earnings results on Wednesday, October 23rd. The company reported $0.90 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analysts’ expectations of $716.40 million. During the same quarter in the previous year, the firm posted $0.80 EPS. The firm’s quarterly revenue was up 4.8% on a year-over-year basis. Sell-side analysts expect that Teradyne will post 3.17 EPS for the current fiscal year.

Wall Street Analyst Weigh In

TER has been the subject of a number of analyst reports. Cantor Fitzgerald raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $160.00 price objective for the company in a research report on Friday, August 16th. Northland Securities cut their price objective on Teradyne from $126.00 to $117.00 and set a “market perform” rating on the stock in a report on Friday, October 25th. Craig Hallum reduced their target price on shares of Teradyne from $124.00 to $111.00 and set a “hold” rating on the stock in a report on Friday, October 25th. Evercore ISI upped their price target on Teradyne from $130.00 to $145.00 and gave the stock an “overweight” rating in a report on Wednesday, October 9th. Finally, StockNews.com raised shares of Teradyne from a “sell” rating to a “hold” rating in a research report on Sunday, October 27th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $142.62.

Teradyne announced that its board has approved a stock repurchase plan on Monday, November 11th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 0.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other Teradyne news, CEO Gregory Stephen Smith sold 3,080 shares of Teradyne stock in a transaction on Wednesday, September 11th. The stock was sold at an average price of $130.00, for a total value of $400,400.00. Following the completion of the transaction, the chief executive officer now owns 83,816 shares in the company, valued at approximately $10,896,080. The trade was a 3.54 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Mercedes Johnson sold 625 shares of the company’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $133.49, for a total transaction of $83,431.25. Following the transaction, the director now owns 16,518 shares in the company, valued at $2,204,987.82. The trade was a 3.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 8,199 shares of company stock valued at $1,080,634. 0.36% of the stock is owned by company insiders.

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.