Teradyne, Inc. (NASDAQ:TER) has been downgraded by BofA/Merrill on November 20 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at Craig Hallum, shed their negative views on October 25 by lifting it fromHold to Buy. The stock lost favor of Goldman analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on October 18. Needham, reiterated their call for Buy, on July 26. On the other hand, they had set new target price to $48 versus $45.
Teradyne, Inc. (TER) hit an intraday high Thursday at $33.82. The shares finished at $33.81, after trading as low as $32.83 earlier in the session. It dropped -1.97% in recent trade and currently has a stock-market value of $6.28B. Trading activity significantly improved as the volume at ready counter increased to 3,357,977 shares versus 2,352,060 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,859,195 shares. The stock is now 11.88% above against its bear-market low of $30.22 on October 24, 2018. It has retreated -49.9% since it’s 52-week high of $50.68 reached in March. Now the market price is down -14.77% on the year and down -19.25% YTD.
TER’s 50 day simple moving average (SMA 50) price is $34.87 and its 200-day simple moving average (SMA 200) price is $39.44. The company’s stock currently has a total float of 178.44M shares. Its weekly volatility is hovering around 3.63% and felt 3.36% volatility in price over a month. On the upside, the share price will test short term resistance at around $34.14. On a downside, the stock is likely to find some support, which begins at $33.15. The failure to get near-term support could push it to $32.5.
Separately, it has been reported that multiple insider activity took place at Teradyne, Inc. (TER). President, Semiconductor Test Smith Gregory Stephen sold 7,431 shares for $7,982 in transaction occurred on 2018/02/05. After making this transaction, the President, Semiconductor Test owns a direct stake of 330,754 shares, worth $269,871, as per the last closing price. On 2018/02/02 Jagiela Mark E, President and CEO at TER, dumped 30,000 shares at an average price of $44.96 per share. The selling total is valued at $8,267,086.
VP,General Counsel & Secretary, Gray Charles Jeffrey had divested 32,238 shares for $29,100 through a trade on 2018/01/31. Following this activity, the insider holds 1,492,942 shares worth $983,871 as of recent close. Wall Street’s most bullish Teradyne, Inc. (NASDAQ:TER) analysts are predicting the share price to blow past $47 per share during the next 12 months. The current median share price forecast by them is $39, suggesting that the stock could increase 15.35% in that time frame. The average price target of $40 calls for a nearly 18.31% increase in the stock price.
When looking at valuations, Teradyne, Inc. (TER) has a cheap P/E of 17.04x as compared to industry average of 22.41x. Moreover, it trades for 13.79 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.77x price/book and 3.05x price/sales. Compared to others, Teradyne, Inc. is in a different league with regards to profitability, having net margins of 9.8%. To put some perspective around this, the industry’s average net margin is 15.54%. TER’s ROE is 11.1%, which is also considerably worse than the industry’s ROE of 21.77%. It’s also very liquid in the near term, with a current ratio of 4.1. The stock has a debt/capital of 0.23.
Shares of Teradyne, Inc. (TER) have gained 7.1% since the company’s last earnings report. Over the past 12 fiscal quarters, Teradyne, Inc. (NASDAQ:TER) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. TER last reported earnings on October 23, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.71 per share, -94.27% change on the same period last year. That was better than consensus for $0.63. Revenue for the recent quarter stood at $566.85 million, up 13% on last year and above the $556.89 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $483 million to $498.9 million, which should be compared with $465.44 million generated last year. EPS is seen in a range of $0.5 to $0.52, against the $0.4 reported a year ago.