Prepare Yourself for Liftoff: Teradyne Inc. (TER)

Teradyne Inc. (NASDAQ: TER) stock jumped 3.04% on Thursday to $97.27 against a previous-day closing price of $94.40. With 3.97 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.6 million shares. The 52-week range on TER shows that it touched its highest point at $112.06 and its lowest point at $67.81 during that stretch. It currently has a 1-year price target of $109.61. With its current market cap of 15.31 billion, TER has annualized dividend of $0.44 while the current yield stands at 0.45%. Beta for the stock currently stands at 1.52.

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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 down-trending over the past week, with a drop of -1.32%, but this was up by 4.22% over a month. Three-month performance dropped to -3.35% while six-month performance rose 4.67%. The stock lost -1.94% in the past year, while it has gained 11.36% so far this year. A look at the trailing 12-month EPS for TER yields 3.80 with Next year EPS estimates of 4.67. For the next quarter, that number is 0.65. This implies an EPS growth rate of -23.70% for this year and 67.71% for next year. EPS is expected to grow by 8.99% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.00%.

Float and Shares Shorts:

At present, 155.90 million TER shares are outstanding with a float of 154.85 million shares on hand for trading. On Apr 27, 2023, short shares totaled 3.34 million, which was 2.15% higher than short shares on Mar 30, 2023. In addition to Mr. Gregory S. Smith as the firm’s Pres, CEO & Director, Mr. Sanjay Mehta serves as its CFO, VP & Treasurer.

Institutional Ownership:

Through their ownership of 104.37% of TER’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.20% of TER, in contrast to 38.15% held by mutual funds. Shares owned by individuals account for 1.09%. As the largest shareholder in TER with 11.22% of the stake, The Vanguard Group, Inc. holds 17,512,662 shares worth 17,512,662. A second-largest stockholder of TER, Fidelity Management & Research Co, holds 10,938,580 shares, controlling over 7.01% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TER, holding 9,753,635 shares or 6.25% stake. With a 3.11% stake in TER, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,846,678 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.34% of TER stock, is the second-largest Mutual Fund holder. It holds 3,656,518 shares valued at 334.13 million. Vanguard Mid Cap Index Fund holds 2.34% of the stake in TER, owning 3,643,093 shares worth 332.91 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 01, 2023, TER reported revenue of $840.77M and operating income of $250.03M. The EBITDA in the recently reported quarter was $276.85M and diluted EPS was $1.16.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TER since 0 analysts follow the stock currently. 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 $136.00 and a low target of $80.00, the average target price over the next 12 months is $105.23. Based on these targets, TER could surge 39.82% to reach the target high and fall by -17.75% to reach the target low. Reaching the average price target will result in a growth of 8.18% 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.

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 $0.39 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 $0.45. In the past year, TER’s dividend yield has been $0.45, but when looking at the stock over the past five years, its yield has been $0.55. Accordingly, TER has a current buyback yield of $4.27. This was $4.27 for the TTM, and it was $4.95 for the past five years.

Summary of Insider Activity:

Insiders traded TER stock several times over the past three months with 6 Buys and 3 Sells. In these transactions, 3,219 shares were bought while 4,850 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 44 over the past year. The total number of shares bought during that period was 230,845 while 243,253 shares were sold.

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