Teradyne (NASDAQ:TER) Shares Gap Up - Still a Buy?

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

Analyst Ratings Changes

Several equities analysts have issued reports on TER shares. Northland Securities decreased their price target on shares of Teradyne from $126.00 to $117.00 and set a "market perform" rating for the company in a research report on Friday, October 25th. Craig Hallum lowered their target price on Teradyne from $124.00 to $111.00 and set a "hold" rating for the company in a research report on Friday, October 25th. Evercore ISI upped their target price on Teradyne from $130.00 to $145.00 and gave the company an "overweight" rating in a report on Wednesday, October 9th. Robert W. Baird dropped their price target 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. Finally, Stifel Nicolaus decreased their target price on Teradyne from $140.00 to $125.00 and set a "hold" rating for the company in a research note on Friday, October 25th. Five investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $147.25.

Teradyne Price Performance

The business has a 50 day moving average of $115.18 and a 200 day moving average of $129.55. The company has a market cap of $21.09 billion, a PE ratio of 39.12, a price-to-earnings-growth ratio of 2.66 and a beta of 1.51.

Teradyne (NASDAQ:TER - Get Free Report) last released its earnings results 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 return on equity of 18.56% and a net margin of 18.75%. The company had revenue of $737.30 million during the quarter, compared to analysts' expectations of $716.40 million. During the same quarter last year, the business posted $0.80 EPS. The firm's revenue for the quarter was up 4.8% compared to the same quarter last year. Sell-side analysts forecast that Teradyne, Inc. will post 3.17 EPS for the current fiscal year.

Teradyne Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Monday, November 25th will be paid a $0.12 dividend. The ex-dividend date is Monday, November 25th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.37%. Teradyne's dividend payout ratio (DPR) is currently 15.24%.

Teradyne announced that its board has approved a share repurchase program on Monday, November 11th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 0.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company's management believes its shares are undervalued.

Insider Activity

In other Teradyne news, Director Mercedes Johnson sold 625 shares of the business's stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $132.80, for a total transaction of $83,000.00. Following the transaction, the director now owns 15,893 shares in the company, valued at $2,110,590.40. The trade was a 3.78 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Richard John Burns sold 789 shares of the company's stock in a transaction that occurred on Tuesday, October 1st. The shares were sold at an average price of $132.80, for a total value of $104,779.20. Following the transaction, the insider now directly owns 21,864 shares in the company, valued at approximately $2,903,539.20. This represents a 3.48 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 4,494 shares of company stock worth $596,803 in the last three months. Company insiders own 0.36% of the company's stock.

Hedge Funds Weigh In On Teradyne

A number of large investors have recently added to or reduced their stakes in the company. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Teradyne during the second quarter worth about $27,000. Capital Performance Advisors LLP acquired a new stake in Teradyne during the 3rd quarter valued at approximately $29,000. Rothschild Investment LLC purchased a new stake in shares of Teradyne in the 2nd quarter valued at $33,000. Quarry LP increased its stake in shares of Teradyne by 256.1% in the second quarter. Quarry LP now owns 235 shares of the company's stock worth $35,000 after acquiring an additional 169 shares during the period. Finally, Tortoise Investment Management LLC raised its holdings in shares of Teradyne by 76.1% during the second quarter. Tortoise Investment Management LLC now owns 273 shares of the company's stock worth $40,000 after purchasing an additional 118 shares during the last quarter. 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.