Teradyne (NASDAQ:TER) Shares Gap Down After Insider Selling

Teradyne, Inc. (NASDAQ:TER) gapped down prior to trading on Thursday after an insider sold shares in the company. The stock had previously closed at $122.05, but opened at $102.00. Teradyne shares last traded at $110.66, with a volume of 1,991,735 shares changing hands.

Specifically, CFO Sanjay Mehta sold 1,789 shares of the firm’s stock in a transaction on Tuesday, January 28th. The shares were sold at an average price of $120.51, for a total value of $215,592.39. Following the transaction, the chief financial officer now directly owns 33,308 shares of the company’s stock, valued at approximately $4,013,947.08. This trade represents a 5.10 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Richard John Burns sold 407 shares of the business’s stock in a transaction dated Tuesday, January 28th. The stock was sold at an average price of $120.51, for a total transaction of $49,047.57. Following the sale, the insider now directly owns 20,764 shares of the company’s stock, valued at approximately $2,502,269.64. The trade was a 1.92 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Robert W. Baird cut 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 Securities raised Teradyne from a “market perform” rating to an “outperform” rating and increased their price target for the company from $117.00 to $154.00 in a research report on Monday, January 6th. Northland Capmk upgraded Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 6th. Susquehanna upped their target price on shares of Teradyne from $145.00 to $165.00 and gave the stock a “positive” rating in a research note on Wednesday, January 22nd. Finally, Evercore ISI raised their price target on shares of Teradyne from $130.00 to $145.00 and gave the company an “overweight” rating in a research report on Wednesday, October 9th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, Teradyne has a consensus rating of “Moderate Buy” and an average target price of $149.31.

Teradyne Price Performance

The stock has a market cap of $18.00 billion, a P/E ratio of 34.97, a PEG ratio of 2.25 and a beta of 1.46. The firm’s fifty day moving average price is $125.02 and its two-hundred day moving average price is $125.71.

Teradyne (NASDAQ:TER) last posted its quarterly earnings data on Wednesday, January 29th. The company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.04. Teradyne had a net margin of 18.75% and a return on equity of 18.56%. On average, research analysts expect that Teradyne, Inc. will post 3.17 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Friday, February 14th will be issued a dividend of $0.12 per share. The ex-dividend date is Friday, February 14th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.43%. Teradyne’s dividend payout ratio is 15.24%.

Teradyne announced that its Board of Directors has initiated a stock buyback program on Monday, November 11th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to buy up to 0.6% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp lifted its stake in shares of Teradyne by 5.4% in the 3rd 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. Van ECK Associates Corp grew its position in Teradyne by 59.9% during the 4th quarter. Van ECK Associates Corp now owns 4,928,143 shares of the company’s stock worth $620,552,000 after acquiring an additional 1,846,079 shares during the last quarter. Geode Capital Management LLC increased its stake in Teradyne by 5.5% in the 3rd quarter. Geode Capital Management LLC now owns 4,011,131 shares of the company’s stock worth $535,484,000 after purchasing an additional 209,868 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its position in Teradyne by 16.2% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,825,897 shares of the company’s stock valued at $355,837,000 after purchasing an additional 393,175 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in shares of Teradyne by 7.1% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 2,390,896 shares of the company’s stock valued at $302,582,000 after purchasing an additional 157,838 shares during the period. 99.77% of the stock is currently 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.