Gains May Be On The Menu For Teradyne Inc. (NASDAQ: TER)


Baillie Gifford & Co. recently announced the acquisition of new stake in Teradyne Inc. (NASDAQ:TER). The institutional investor has increased its shareholding in the Technology company by 0.01% to 8.18 million shares with purchase of 843.0 shares. This fresh investment now brings its stake to 4.94% valued currently at $691.7 million. In addition, Columbia Management Investment Ad. raised its holdings by 0.51 million to 8.11 million shares. And Wellington Management Co. LLP has lifted its position by 19.43% or 1.13 million shares – to 6.96 million shares.

With over 2.23 million Teradyne Inc. (TER) shares trading Wednesday and a closing price of $88.77 on the day, the dollar volume was approximately $197.85 million. The shares have shown a negative weekly performance of -3.03% and its price on 07/28/20 gained nearly 2.03%. Currently, there are 166.59M common shares owned by the public and among those 164.78M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for TER have a consensus price objective of $87.26. The analysts have set the share’s price value over the next 12 months at a high of $110.00 and a low of $60.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Teradyne Inc. stock is 2.60 for the next 12 months. The average price target is -3.37% below its last price level and a downside to the estimated low will see the stock lose -47.95% over that period. But an upside of 19.3% will see the stock hit the forecast high price target while mean target price for the stock is $90.00.

Insiders at the company have transacted a total of 91 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 37 of these insider trades were purchases, accounting for 326,024 shares. Insider sales of the common stock occurred on 54 occasions, with total insider shares sold totaling 376,635 shares.

The top 3 mutual fund holders in Teradyne Inc. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 4.73 million shares of the company’s stock, all valued at over $399.43 million. The company sold -0.1 million shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.19 million shares to bring its total holdings to over 4.15 million shares at a value of $350.76 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.50% of the shares outstanding.

Shares of Teradyne Inc. (NASDAQ: TER) opened at $87.34, up $0.34 from a prior closing price of $87.00. However, the script later closed the day at $88.77, up 2.03%. The company’s stock has a 5-day price change of -3.03% and 37.68% over the past three months. TER shares are trading 27.58% year to date (YTD), with the 12-month market performance up to 51.07% higher. It has a 12-month low price of $42.87 and touched a high of $90.70 over the same period. Currently, 2.23 million shares have been traded, compared to an average intraday trading volume of 2.24 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.24%, 12.98%, and 32.47% respectively.

Institutional ownership of Teradyne Inc. (NASDAQ: TER) shares accounts for 97.60% of the company’s 166.59M shares outstanding. Mutual fund holders own 39.64%, while other institutional holders and individual stakeholders account for 57.79% and 1.19% respectively.

It has a market capitalization of $14.87B and a beta (3y monthly) value of 1.34. The stock’s trailing 12-month PE ratio is 25.10, while the earnings-per-share (ttm) stands at $3.47. The company has a PEG of 1.51 and a Quick Ratio of 3.00 with the debt-to-equity ratio at 0.26. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.39% over the week and 3.32% over the month.

Analysts forecast that Teradyne Inc. (TER) will achieve an EPS of $1.12 for the current quarter, $0.46 for the next quarter and $4.05 for 2021. The lowest estimate earnings-per-share for the quarter is $1.09 while analysts give the company a high EPS estimate of $1.23. Comparatively, EPS for the current quarter was $0.77 a year ago. Earnings per share for the fiscal year are expected to increase by 24.70%, and 4.70% over the next financial year. EPS should shrink at an annualized rate of 16.66% over the next five years, compared to 48.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Teradyne Inc. (TER) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 9 of the 17 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the TER, a number of firms have released research notes about the stock. Craig Hallum stated their Hold rating for the stock in a research note on July 14, 2020, with the firm’s price target at $76. Craig Hallum coverage for the Teradyne Inc. (TER) stock in a research note released on April 23, 2020 offered a Buy rating with a price target of $76. UBS was of a view on April 23, 2020 that the stock is Sell, while Deutsche Bank gave the stock Buy rating on March 27, 2020, issuing a price target of $68. Northland Capital on their part issued Outperform rating on March 13, 2020.


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