Teradyne (NASDAQ:TER) Shares Gap Down – What’s Next?

Teradyne, Inc. (NASDAQ:TER)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $138.40, but opened at $135.00. Teradyne shares last traded at $130.96, with a volume of 598,834 shares changing hands.

Wall Street Analyst Weigh In

Several brokerages have commented on TER. Stifel Nicolaus dropped their price target on shares of Teradyne from $140.00 to $125.00 and set a “hold” rating on the stock in a research note on Friday, October 25th. Robert W. Baird decreased their price target on Teradyne from $140.00 to $133.00 and set an “outperform” rating for the company in a research note on Friday, October 25th. Northland Capmk upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 6th. Craig Hallum decreased their target price on shares of Teradyne from $124.00 to $111.00 and set a “hold” rating for the company in a research report on Friday, October 25th. Finally, StockNews.com upgraded shares of Teradyne from a “sell” rating to a “hold” rating in a research report on Sunday, October 27th. One research analyst has rated the stock with a sell rating, three have given a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $147.77.

Teradyne Price Performance

The firm’s fifty day moving average is $121.85 and its 200 day moving average is $126.85. The firm has a market capitalization of $21.68 billion, a price-to-earnings ratio of 42.36, a PEG ratio of 2.30 and a beta of 1.46.

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

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Stockholders of record on Monday, November 25th were paid a dividend of $0.12 per share. The ex-dividend date was Monday, November 25th. This represents a $0.48 annualized dividend and a dividend yield of 0.36%. Teradyne’s dividend payout ratio (DPR) is 15.24%.

Teradyne announced that its Board of Directors has initiated a share buyback program on Monday, November 11th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to repurchase up to 0.6% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, CEO Gregory Stephen Smith sold 3,080 shares of the company’s stock in a transaction on Friday, January 3rd. The shares were sold at an average price of $130.00, for a total transaction of $400,400.00. Following the completion of the sale, the chief executive officer now directly owns 74,660 shares of the company’s stock, valued at approximately $9,705,800. This represents a 3.96 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.18% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Whittier Trust Co. increased its holdings in shares of Teradyne by 10.2% during the 3rd quarter. Whittier Trust Co. now owns 950 shares of the company’s stock worth $127,000 after purchasing an additional 88 shares during the period. Whittier Trust Co. of Nevada Inc. increased its stake in Teradyne by 10.2% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 1,115 shares of the company’s stock valued at $149,000 after acquiring an additional 103 shares during the period. Thrivent Financial for Lutherans lifted its position in shares of Teradyne by 1.7% in the 3rd quarter. Thrivent Financial for Lutherans now owns 6,403 shares of the company’s stock worth $858,000 after acquiring an additional 104 shares during the period. GAMMA Investing LLC lifted its position in shares of Teradyne by 3.1% in the 4th quarter. GAMMA Investing LLC now owns 3,445 shares of the company’s stock worth $434,000 after acquiring an additional 105 shares during the period. Finally, TD Private Client Wealth LLC increased its position in shares of Teradyne by 0.5% during the third quarter. TD Private Client Wealth LLC now owns 19,904 shares of the company’s stock valued at $2,666,000 after purchasing an additional 108 shares during the period. Institutional investors and hedge funds own 99.77% of the company’s stock.

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.