TER Teradyne Inc

Zacks Research has downgraded Teradyne (NASDAQ:TER) from a "strong-buy" to a "hold" rating, despite the company exceeding quarterly earnings estimates. The stock currently trades around $196 with a "Moderate Buy" consensus price target of $185.75, but insiders, including the CEO, have been selling shares.

Pacer Advisors Inc. significantly reduced its stake in Teradyne, Inc. by 95.5% in the third quarter, retaining 24,175 shares valued at approximately $3.33 million. This comes as CEO Gregory Stephen Smith also sold shares, decreasing his position by 1.17%, while overall insider selling totaled 3,324 shares last quarter. Teradyne, trading near $196.63, has a market cap of $30.79 billion, a P/E of 71.5, and an average analyst rating of "Moderate Buy" with a target price of $185.75.

Allspring Global Investments Holdings LLC increased its stake in Teradyne, Inc. (NASDAQ:TER) by 11.4% in the third quarter, purchasing an additional 354,876 shares and bringing its total holdings to 3,473,173 shares valued at approximately $490.1 million. This makes Teradyne the firm's 11th largest position, representing about 0.8% of its portfolio. The company has also received several positive analyst price target revisions, with a consensus target of $185.75, and recently surpassed quarterly EPS and revenue estimates.

Teradyne (TER) is experiencing significant growth due to the increasing demand for AI infrastructure, with its Semiconductor Test business and new products like the Titan HP system contributing to strong revenues. While facing stiff competition from companies like Advantest and ABB, Teradyne anticipates AI-related demand to continue driving growth into 2026. Despite trading at a premium valuation, the company expects positive year-over-year earnings growth for fiscal 2025.

This article analyzes Teradyne's (TER) average brokerage recommendation (ABR) and contrasts it with the Zacks Rank. While TER has a positive ABR, the article cautions against relying solely on brokerage recommendations due to their inherent bias, suggesting the Zacks Rank provides a more reliable indicator for investment decisions. It concludes that due to stable earnings estimates, Teradyne currently holds a Zacks Rank #3 (Hold), advising caution despite its positive ABR.

World Investment Advisors recently acquired a new stake of 7,362 shares in Teradyne, Inc. (NASDAQ:TER) valued at approximately $1.01 million. This comes as institutional investors now collectively own 99.77% of the company, and analysts have become more bullish, with Goldman Sachs upgrading TER to a "buy" rating. Despite a CEO insider sale, the company recently beat earnings and revenue estimates and declared a quarterly dividend.