Zacks Investment Research Lowers Teradyne (TER) to Hold

Zacks Investment Research lowered shares of Teradyne (NYSE:TER) from a strong-buy rating to a hold rating in a research note released on Wednesday.

According to Zacks, “Teradyne continues to benefit from strengthening Semiconductor and System Test Businesses. Moreover, a recovery in the core semiconductor business (processors, MCUs and power management) will continue to boost total revenues. We believe that the company has signficant growth opportunities in the high-growth wireless test market in the long-haul. Notably, the stock has outperformed the industry it belongs to. 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. Further, the slowdown of PC market remains a concern for the company’s HDD business.”

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A number of other analysts also recently issued reports on TER. Stifel Nicolaus lifted their price target on Teradyne from $46.00 to $54.00 and gave the stock a buy rating in a report on Wednesday, January 24th. Bank of America initiated coverage on Teradyne in a research report on Wednesday, March 21st. They set a buy rating and a $58.00 target price on the stock. DA Davidson lifted their target price on Teradyne to $55.00 and gave the stock a buy rating in a research report on Friday, January 26th. ValuEngine cut Teradyne from a buy rating to a hold rating in a research report on Friday, December 1st. Finally, Citigroup lifted their target price on Teradyne from $48.00 to $54.00 and gave the stock a buy rating in a research report on Tuesday, January 30th. Four research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. The company presently has a consensus rating of Buy and an average target price of $48.83.

Shares of NYSE TER opened at $45.71 on Wednesday. The stock has a market cap of $8,932.79, a price-to-earnings ratio of 19.53, a price-to-earnings-growth ratio of 1.30 and a beta of 1.11. The company has a quick ratio of 4.76, a current ratio of 5.00 and a debt-to-equity ratio of 0.19. Teradyne has a 1 year low of $29.68 and a 1 year high of $50.68.

Teradyne (NYSE:TER) last announced its quarterly earnings results on Wednesday, January 24th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.34 by $0.12. The company had revenue of $479.00 million during the quarter, compared to the consensus estimate of $438.85 million. Teradyne had a return on equity of 23.37% and a net margin of 12.06%. Teradyne’s revenue for the quarter was up 26.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.32 EPS. equities research analysts expect that Teradyne will post 2.53 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, March 23rd. Stockholders of record on Friday, February 23rd were given a dividend of $0.09 per share. The ex-dividend date was Thursday, February 22nd. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.79%. This is a boost from Teradyne’s previous quarterly dividend of $0.07. Teradyne’s payout ratio is 15.38%.

Teradyne announced that its board has approved a share buyback program on Wednesday, January 24th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the semiconductor company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

In related news, VP Charles Jeffrey Gray sold 5,040 shares of the business’s stock in a transaction dated Friday, January 26th. The stock was sold at an average price of $47.25, for a total value of $238,140.00. Following the transaction, the vice president now owns 31,593 shares in the company, valued at approximately $1,492,769.25. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Gregory R. Beecher sold 71,300 shares of the business’s stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $46.57, for a total value of $3,320,441.00. Following the completion of the transaction, the chief financial officer now owns 77,676 shares in the company, valued at approximately $3,617,371.32. The disclosure for this sale can be found here. Insiders sold a total of 146,009 shares of company stock worth $6,731,077 in the last 90 days. 0.62% of the stock is currently owned by insiders.

Hedge funds have recently modified their holdings of the stock. Cornerstone Capital Management Holdings LLC. acquired a new position in Teradyne in the 4th quarter valued at about $156,000. Focused Wealth Management Inc acquired a new position in Teradyne in the 4th quarter valued at about $163,000. We Are One Seven LLC acquired a new position in Teradyne in the 4th quarter valued at about $179,000. Krilogy Financial LLC acquired a new position in Teradyne in the 3rd quarter valued at about $179,000. Finally, Fiduciary Trust Co. acquired a new position in Teradyne in the 4th quarter valued at about $205,000. Hedge funds and other institutional investors own 98.58% of the company’s stock.

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About Teradyne

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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