Zacks Investment Research Lowers Teradyne (NYSE:TER) to Hold

Zacks Investment Research downgraded shares of Teradyne (NYSE:TER) from a strong-buy rating to a hold rating in a research report released on Wednesday, December 27th.

According to Zacks, “Teradyne has outperformed the industry it belongs to on a year-to-date basis. Robust performance from Semiconductor Test Business is driving top-line growth. Moreover, a recovery in the core semiconductor business (processors, MCUs and power management) will boost total revenues. We believe that the company has signficant growth opportunities in the high-growth wireless test market in the long-haul. Additionally, growing memory market exposure, strong product lineup, lean cost structure and strong balance sheet are positives. Given the popularity of its products, the Universal Robots acquisition and the continuous design win momentum; the company is optimistic long-term prospects. However, volatility in the test market could be a concern in the near term.”

Several other equities analysts have also commented on TER. Needham & Company LLC restated a buy rating and issued a $40.00 price objective on shares of Teradyne in a report on Friday, September 1st. KeyCorp restated a buy rating and issued a $40.00 price objective on shares of Teradyne in a report on Tuesday, September 5th. Susquehanna Bancshares reiterated a neutral rating and set a $41.00 target price (up from $32.00) on shares of Teradyne in a report on Monday, September 18th. Citigroup reiterated a buy rating and set a $43.00 target price on shares of Teradyne in a report on Tuesday, September 19th. Finally, Robert W. Baird reiterated a positive rating and set a $48.00 target price (up from $37.00) on shares of Teradyne in a report on Friday, October 27th. Five analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $42.55.

Shares of Teradyne (TER) opened at $44.53 on Wednesday. Teradyne has a one year low of $25.72 and a one year high of $46.48. The stock has a market cap of $8,730.00, a PE ratio of 20.81, a P/E/G ratio of 1.64 and a beta of 1.01. The company has a debt-to-equity ratio of 0.17, a quick ratio of 4.67 and a current ratio of 4.96.

Teradyne (NYSE:TER) last posted its quarterly earnings results on Wednesday, October 25th. The semiconductor company reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.11. Teradyne had a net margin of 20.55% and a return on equity of 19.95%. The business had revenue of $503.40 million during the quarter, compared to analysts’ expectations of $472.86 million. During the same quarter in the prior year, the company posted $0.31 EPS. The business’s revenue for the quarter was up 22.6% on a year-over-year basis. equities analysts expect that Teradyne will post 2.22 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, December 21st. Shareholders of record on Wednesday, November 29th were given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 0.63%. The ex-dividend date of this dividend was Tuesday, November 28th. Teradyne’s payout ratio is currently 13.08%.

In related news, insider Brad Robbins sold 12,045 shares of the firm’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $42.19, for a total value of $508,178.55. Following the completion of the sale, the insider now owns 7,126 shares in the company, valued at $300,645.94. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael A. Bradley sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, November 1st. The shares were sold at an average price of $42.80, for a total transaction of $428,000.00. Following the completion of the sale, the director now owns 145,836 shares of the company’s stock, valued at approximately $6,241,780.80. The disclosure for this sale can be found here. Insiders have sold a total of 140,206 shares of company stock worth $6,066,881 over the last three months. 0.62% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in TER. JPMorgan Chase & Co. lifted its stake in shares of Teradyne by 238.2% in the second quarter. JPMorgan Chase & Co. now owns 3,877,810 shares of the semiconductor company’s stock valued at $116,451,000 after purchasing an additional 2,731,167 shares during the period. BlackRock Inc. lifted its stake in shares of Teradyne by 13.3% in the second quarter. BlackRock Inc. now owns 20,807,353 shares of the semiconductor company’s stock valued at $624,846,000 after purchasing an additional 2,437,869 shares during the period. Wells Fargo & Company MN lifted its stake in shares of Teradyne by 71.0% in the second quarter. Wells Fargo & Company MN now owns 4,293,075 shares of the semiconductor company’s stock valued at $128,922,000 after purchasing an additional 1,781,854 shares during the period. Coatue Management LLC acquired a new position in Teradyne during the second quarter worth about $39,545,000. Finally, Argent Capital Management LLC acquired a new position in Teradyne during the third quarter worth about $47,393,000. Hedge funds and other institutional investors own 96.45% of the company’s stock.

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Teradyne Company Profile

Teradyne, Inc supplies automation equipment for test and industrial applications. The Company designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, communications, and aerospace and defense industries.

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