Teradyne (NASDAQ:TER) Shares Gap Down - What's Next?

Teradyne, Inc. (NASDAQ:TER - Get Free Report)'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.

Analyst Ratings Changes

Several equities research analysts recently commented on TER shares. StockNews.com upgraded shares of Teradyne from a "sell" rating to a "hold" rating in a research report on Sunday, October 27th. Evercore ISI lifted their target price on shares of Teradyne from $130.00 to $145.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 9th. Robert W. Baird cut their target price on shares of Teradyne from $140.00 to $133.00 and set an "outperform" rating on the stock in a research report on Friday, October 25th. Stifel Nicolaus cut their target price on shares of Teradyne from $140.00 to $125.00 and set a "hold" rating on the stock in a research report on Friday, October 25th. Finally, Northland Capmk upgraded shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research report on Monday, January 6th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $147.77.

Teradyne Trading Down 4.4 %

The stock's 50-day moving average is $121.85 and its 200-day moving average is $126.85. The company has a market cap of $21.55 billion, a price-to-earnings ratio of 42.00, a P/E/G ratio of 2.30 and a beta of 1.46.

Teradyne (NASDAQ:TER - Get Free Report) last released its earnings results on Wednesday, October 23rd. The company reported $0.90 earnings per share (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 quarter in the previous year, the company earned $0.80 EPS. Teradyne's quarterly revenue was up 4.8% compared to the same quarter last year. As a group, analysts predict that Teradyne, Inc. will post 3.17 EPS for the current year.

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Shareholders 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 dividend on an annualized basis and a yield of 0.36%. Teradyne's dividend payout ratio (DPR) is presently 15.24%.

Teradyne announced that its Board of Directors has approved a share buyback plan on Monday, November 11th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to reacquire up to 0.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 3,080 shares of the business'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 owns 74,660 shares in the company, valued at approximately $9,705,800. The trade was a 3.96 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.18% of the stock is currently owned by company insiders.

Institutional Trading of Teradyne

Several institutional investors have recently made changes to their positions in TER. Dimensional Fund Advisors LP grew its stake in shares of Teradyne by 1.9% in the 2nd quarter. Dimensional Fund Advisors LP now owns 861,030 shares of the company's stock worth $127,684,000 after acquiring an additional 15,907 shares in the last quarter. Benjamin F. Edwards & Company Inc. grew its position in Teradyne by 206.8% during the second quarter. Benjamin F. Edwards & Company Inc. now owns 8,934 shares of the company's stock valued at $1,325,000 after buying an additional 6,022 shares during the period. Profund Advisors LLC grew its position in Teradyne by 15.6% during the second quarter. Profund Advisors LLC now owns 14,095 shares of the company's stock valued at $2,090,000 after buying an additional 1,897 shares during the period. ProShare Advisors LLC grew its position in Teradyne by 12.5% during the second quarter. ProShare Advisors LLC now owns 50,339 shares of the company's stock valued at $7,465,000 after buying an additional 5,608 shares during the period. Finally, Frank Rimerman Advisors LLC bought a new position in Teradyne during the second quarter valued at about $294,000. Institutional investors 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.