Teradyne, Inc. (NYSE:NASDAQ:TER) Director Johnson Mercedes has sold a portion of her holdings in the company, according to a recent SEC filing. The transaction, which took place on July 1, 2024, involved the sale of 625 shares at a price of $148.00 per share, totaling $92,500.
The sale was executed under a prearranged trading plan, known as a 10b5-1 plan, which allows company insiders to set up a schedule for selling shares over time. Such plans are put in place to help insiders avoid accusations of trading on nonpublic information, as they establish predetermined trading actions at times when the insider is not in possession of material, nonpublic information.
Following the sale, Johnson Mercedes still retains a substantial number of shares in Teradyne, holding 17,768 shares directly. The transaction was disclosed in a legal filing with the Securities and Exchange Commission, which is available to the public.
Investors often monitor the buying and selling activities of company insiders for insights into a company's potential future performance. Insider sales and purchases can provide valuable information, although they are not necessarily indicative of future price movement.
Teradyne, headquartered in North Reading, Massachusetts, is known for its work in the field of automated test equipment. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol TER.
In other recent news, Teradyne Robotics has appointed James Davidson as its Chief Artificial Intelligence Officer, a move that is expected to advance the company's AI technologies. This change in leadership comes as Teradyne Robotics continues to solidify its position in the automation industry. In other developments, Teradyne announced a quarterly cash dividend of $0.12 per share, to be paid on June 14, 2024, to shareholders on record by May 22, 2024.
Financial firms have also adjusted their outlook on Teradyne. KeyBanc Capital Markets increased the company's price target to $149, maintaining an Overweight rating. This adjustment reflects an anticipation of a cyclical recovery and advancements in semiconductor testing. Goldman Sachs elevated Teradyne's stock rating from Neutral to Buy and increased its price target to $161. The firm anticipates a cyclical recovery in Teradyne's System-on-Chip Test and Robotics divisions, leading to positive earnings per share revisions. Baird also increased its price target for Teradyne from $110 to $120, maintaining an Outperform rating, reflecting the firm's positive outlook on the company's potential growth driven by artificial intelligence.
InvestingPro Insights
As investors digest the news of Director Johnson Mercedes' share sale in Teradyne, Inc. (NYSE:TER), it's worth noting that the company's stock price has been experiencing significant movements. According to InvestingPro, Teradyne is trading near its 52-week high, with the price at 99.41% of this peak. This could suggest a strong confidence among investors or a potential reevaluation of the stock's fair value.
Teradyne's market capitalization stands at $23.35 billion, reflecting its substantial size within the automated test equipment industry. The company's price-to-earnings (P/E) ratio is currently at 54.24, indicating that the stock is trading at a high earnings multiple, which is an InvestingPro Tip that may interest investors looking for growth potential. However, the PEG ratio, which adjusts the P/E ratio for expected earnings growth, is negative at -1.79, pointing to analysts' concerns about future earnings growth relative to the current P/E ratio.
The company's financial health seems robust, with gross profit margins at a solid 57.16% for the last twelve months as of Q1 2024. This demonstrates Teradyne's ability to maintain profitability in its operations. Additionally, another InvestingPro Tip highlights that the company's cash flows can sufficiently cover its interest payments, which is an important consideration for investors assessing financial stability and risk.
For those interested in further analysis and insights, there are 18 additional InvestingPro Tips available to help make more informed investment decisions. To access these tips and a deeper dive into Teradyne's financial metrics, investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.