Teradyne Inc. (NASDAQ: TER) stock jumped 1.18% on Wednesday to $94.03 against a previous-day closing price of $92.93. With 0.88 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.83 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $95.56 whereas the lowest price it dropped to was $92.63. The 52-week range on TER shows that it touched its highest point at $168.91 and its lowest point at $67.81 during that stretch. It currently has a 1-year price target of $103.03. With its current market cap of 14.58 billion, TER has annualized dividend of $0.44 while the current yield stands at 0.47%. Beta for the stock currently stands at 1.52.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TER was up-trending over the past week, with a rise of 2.79%, but this was up by 18.05% over a month. Three-month performance dropped to -2.39% while six-month performance fell -6.19%. The stock lost -36.93% in the past year, while it has lost -42.50% so far this year. A look at the trailing 12-month EPS for TER yields 4.44 with Next year EPS estimates of 3.91. For the next quarter, that number is 0.75. This implies an EPS growth rate of 29.00% for this year and -4.16% for next year. EPS is expected to grow by 0.23% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 94.40%.
Float and Shares Shorts:
At present, 156.36 million TER shares are outstanding with a float of 154.85 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.89 million, which was 2.48% higher than short shares on Sep 14, 2022. In addition to Mr. Mark E. Jagiela as the firm’s CEO & Director, Mr. Gregory S. Smith serves as its Pres.
Through their ownership of 104.83% of TER’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 65.45% of TER, in contrast to 36.81% held by mutual funds. Shares owned by individuals account for 1.02%. As the largest shareholder in TER with 11.00% of the stake, The Vanguard Group, Inc. holds 17,248,926 shares worth 17,248,926. A second-largest stockholder of TER, BlackRock Fund Advisors, holds 9,278,038 shares, controlling over 5.92% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in TER, holding 9,196,691 shares or 5.87% stake. With a 3.00% stake in TER, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,704,430 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.34% of TER stock, is the second-largest Mutual Fund holder. It holds 3,662,228 shares valued at 297.92 million. Vanguard 500 Index Fund holds 2.29% of the stake in TER, owning 3,587,423 shares worth 291.84 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TER since 21 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TER analysts setting a high price target of $120.00 and a low target of $84.00, the average target price over the next 12 months is $100.32. Based on these targets, TER could surge 27.62% to reach the target high and fall by -10.67% to reach the target low. Reaching the average price target will result in a growth of 6.69% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TER will report FY 2022 earnings on 01/25/2023. Analysts have provided yearly estimates in a range of $4.15 being high and $4.02 being low. For TER, this leads to a yearly average estimate of $4.07. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Teradyne Inc. surprised analysts by $0.11 when it reported $1.15 EPS against a consensus estimate of $1.04. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.82 and the low estimate is $0.70. The average estimate for the next quarter is thus $0.75.
Dividends & Yield:
In terms of dividends, TER has a current ratio of $0.44, which is $0.44 over the trailing 12-months, while a dividend of $0.37 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and TER currently yields $0.46. In the past year, TER’s dividend yield has been $0.46, but when looking at the stock over the past five years, its yield has been $0.57. Accordingly, TER has a current buyback yield of $6.52. This was $6.52 for the TTM, and it was $4.7 for the past five years.
Summary of Insider Activity:
Insiders traded TER stock several times over the past three months with 7 Buys and 2 Sells. In these transactions, 4,135 shares were bought while 3,472 shares were sold. The number of buy transactions has increased to 50 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 291,245 while 256,057 shares were sold.