Investors following Teradyne, Inc. (NYSE:NASDAQ:TER) may be interested to learn that the company's President and CEO, Gregory Stephen Smith, recently sold shares of the company's stock. The transaction, which took place on September 11, 2024, involved the sale of 3,080 shares at a price of $130.00 per share, resulting in a total value of $400,400.
The sale was conducted in accordance with a pre-arranged sales plan adopted by Smith on June 7, 2024, which is intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934. This rule allows insiders to set up a predetermined plan to sell company stocks in a way that avoids accusations of insider trading.
Following the transaction, Smith still owns a substantial number of Teradyne shares. According to the filing, he retains 83,815.6368 shares of common stock in the company. It is noted that this figure includes 84.2919 shares that were acquired under Teradyne's Employee Stock Purchase Plan on June 28, 2024.
Teradyne, based in North Reading, Massachusetts, specializes in the design and manufacture of automatic test equipment. It is known for its work in the field of instruments for measuring and testing of electricity and electronic signals.
Investors and analysts often monitor insider sales as they can provide insights into an executive’s perspective on the company's current valuation and future prospects. However, it's important to note that there can be various reasons for an insider to sell shares, and such transactions do not necessarily indicate a lack of confidence in the company.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Teradyne has declared a quarterly cash dividend of $0.12 per share, continuing its practice of returning value to shareholders. The company's Q2 2024 revenue was reported at $730 million, with its Robotics business witnessing a 26% year-over-year increase in revenue. Meanwhile, Cantor Fitzgerald has upgraded Teradyne to Overweight from Neutral, citing strong positioning across various high-growth sectors. The firm also projected a potential earnings per share (EPS) of $7.00+ by 2026. In contrast, Citi trimmed its price target for Teradyne while maintaining a Buy rating, due to updated system-on-chip total addressable market assumptions. Nevertheless, Citi expects a significant recovery in Teradyne's semiconductor test sales, projecting a robust 24% year-over-year increase next year. Baird also adjusted its price target for Teradyne, citing a strong second quarter and the potential of artificial intelligence-related drivers. These are just some of the recent developments surrounding Teradyne.
InvestingPro Insights
As Teradyne, Inc. (NYSE:TER) navigates the market, investors are evaluating the recent insider sale by the company's President and CEO with an eye on the company's financial health and market performance. Here's what the latest data from InvestingPro tells us:
Teradyne's market capitalization stands at $21.5 billion, reflecting its significant presence in the automatic test equipment industry. Despite a challenging environment, as indicated by a revenue decline of 5.48% over the last twelve months as of Q2 2024, the company has managed to maintain a gross profit margin of 57.06%, showcasing the strength of its core operations.
One of the InvestingPro Tips highlights that Teradyne is trading at a high earnings multiple, with a P/E ratio of 40.89, which is above the industry average, suggesting that investors are expecting higher earnings growth in the future. Additionally, the company's ability to cover its interest payments with its cash flows is a positive sign of financial stability.
InvestingPro also notes that Teradyne has a track record of maintaining dividend payments, having done so for 11 consecutive years, which could be attractive to income-seeking investors. The dividend yield currently stands at 0.37%, with a recent dividend growth of 9.09%.
For those interested in a deeper dive into Teradyne's financials and market performance, InvestingPro offers additional tips and insights. There are currently 13 more InvestingPro Tips available for TER at https://www.investing.com/pro/TER, providing a comprehensive analysis for informed investment decisions.
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