In a recent transaction, Johnson Mercedes, a director at Teradyne, Inc. (NASDAQ:TER), sold 625 shares of the company's common stock. The shares were sold at a price of $111.42 each, totaling approximately $69,637. Following this sale, Mercedes retains ownership of 15,268 shares. The sale was conducted under a pre-established 10b5-1 trading plan, which was adopted on February 1, 2024.
In other recent news, Teradyne Incorporated has been the subject of various analyst reports. Craig-Hallum reduced its price target on Teradyne shares to $111.00, maintaining a Hold rating, citing mixed performance across its business segments. Meanwhile, Evercore ISI lowered its price target to $135 but kept an Outperform rating, following the company's better-than-expected September quarter earnings.
Teradyne's Q3 revenues surpassed its guidance, reaching $737 million, with non-GAAP earnings per share at $0.90. The company's Semi Test segment, particularly the Memory Test business, contributed significantly to this robust performance. Fourth quarter sales projections stand between $710 million and $760 million, with non-GAAP earnings per share between $0.80 and $0.97.
These are recent developments for Teradyne, which has seen record revenue in the Memory Test business due to high demand for High Bandwidth (NASDAQ:BAND) Memory DRAM. Evercore ISI revised its 2024 revenue growth outlook for Teradyne to 5% year-over-year, driven by the strength in AI-driven HBM and networking testers. The firm also increased its 2024 System-on-Chip Total (EPA:TTEF) Addressable Market estimate for Teradyne to $4.2 billion, reflecting anticipated growth across several segments.
InvestingPro Insights
As we delve deeper into Teradyne's financial landscape, recent data from InvestingPro sheds light on the company's current position. Teradyne boasts a market capitalization of $17.62 billion, reflecting its substantial presence in the semiconductor equipment industry. The company's P/E ratio stands at 33.03, indicating that investors are willing to pay a premium for Teradyne's earnings, which aligns with the InvestingPro Tip that the stock is "trading at a high earnings multiple."
Despite the recent insider sale, Teradyne's financial health appears robust. The company's revenue for the last twelve months as of Q3 2024 was $2.74 billion, with a gross profit margin of 57.89%. This strong profitability is underscored by an InvestingPro Tip noting that Teradyne has been "profitable over the last twelve months."
It's worth noting that while the stock has experienced some volatility, with a 17.51% decline in the past month, Teradyne has maintained its dividend payments for 11 consecutive years. This commitment to shareholder returns, coupled with the fact that "cash flows can sufficiently cover interest payments," as highlighted by another InvestingPro Tip, suggests a level of financial stability that may be reassuring to long-term investors.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips on Teradyne, providing a deeper understanding of the company's financial position and market performance.
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