Teradyne (NASDAQ:TER) Shares Gap Up – Time to Buy?

Shares of Teradyne, Inc. (NASDAQ:TER) 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.

Analyst Ratings Changes

TER has been the topic of several recent analyst reports. Stifel Nicolaus decreased their price objective on shares of Teradyne from $140.00 to $125.00 and set a “hold” rating on the stock in a report on Friday, October 25th. Craig Hallum decreased their price objective 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. StockNews.com upgraded shares of Teradyne from a “sell” rating to a “hold” rating in a report on Sunday, October 27th. JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $145.00 to $158.00 in a research note on Monday. Finally, Northland Securities cut their target price on shares of Teradyne from $126.00 to $117.00 and set a “market perform” rating on the stock in a research note on Friday, October 25th. Five research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $147.25.

Teradyne Stock Performance

The stock’s 50-day simple moving average is $115.18 and its 200 day simple moving average is $129.55. The company has a market capitalization of $21.01 billion, a PE ratio of 39.12, a P/E/G ratio of 2.66 and a beta of 1.51.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data 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 company had revenue of $737.30 million for the quarter, compared to the consensus estimate of $716.40 million. During the same period in the prior year, the firm posted $0.80 EPS. The company’s quarterly revenue was up 4.8% compared to the same quarter last year. On average, analysts expect that Teradyne, Inc. will post 3.17 earnings per share for the current year.

Teradyne Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Monday, November 25th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.37%. The ex-dividend date of this dividend is Monday, November 25th. Teradyne’s payout ratio is 15.24%.

Teradyne declared that its Board of Directors has initiated a stock repurchase plan on Monday, November 11th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to buy up to 0.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Insider Activity

In related news, CEO Gregory Stephen Smith sold 3,080 shares of the stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $132.80, for a total transaction of $409,024.00. Following the completion of the sale, the chief executive officer now owns 80,736 shares in the company, valued at $10,721,740.80. This represents a 3.67 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mercedes Johnson sold 625 shares of the stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $132.80, for a total transaction of $83,000.00. Following the sale, the director now owns 15,893 shares of the company’s stock, valued at approximately $2,110,590.40. This represents a 3.78 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 4,494 shares of company stock worth $596,803. Corporate insiders own 0.36% of the company’s stock.

Institutional Trading of Teradyne

A number of large investors have recently bought and sold shares of the business. Retirement Systems of Alabama boosted its stake in Teradyne by 4.1% during the 3rd quarter. Retirement Systems of Alabama now owns 35,836 shares of the company’s stock worth $4,800,000 after purchasing an additional 1,399 shares during the period. Franklin Resources Inc. lifted its stake in shares of Teradyne by 30.5% in the 3rd quarter. Franklin Resources Inc. now owns 88,879 shares of the company’s stock worth $11,878,000 after acquiring an additional 20,762 shares during the period. Tidal Investments LLC lifted its stake in shares of Teradyne by 61.6% in the 3rd quarter. Tidal Investments LLC now owns 18,197 shares of the company’s stock worth $2,437,000 after acquiring an additional 6,933 shares during the period. Wilmington Savings Fund Society FSB acquired a new stake in shares of Teradyne in the 3rd quarter worth $81,000. Finally, Anchor Investment Management LLC acquired a new stake in shares of Teradyne in the 3rd quarter worth $95,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

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.