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Teradyne, Inc (TER) is a leading semiconductor equipment & materials business with stocks listed in the US. It opened the day at US$127.63 after a previous close of US$129.59. During the day the price has varied from a low of USD123.53 to a high of USD129.32. The latest price was USD124.86 (25 minute delay). Teradyne is listed on the NASDAQ. All prices are listed in US Dollars.
How to buy shares in Teradyne
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Teradyne. Find the share by name or ticker symbol: TER. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Teradyne reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$126.78, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Teradyne, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Teradyne. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Teradyne key stats
- Compare share trading platforms
- Is Teradyne stock a buy or sell?
- Teradyne performance over time
- Can I short Teradyne shares?
- Is Teradyne suitable for ethical investing?
- Are Teradyne shares over-valued?
- Teradyne's financials
- How volatile are Teradyne shares?
- Does Teradyne pay a dividend?
- Have Teradyne shares ever split?
- Other common questions
Teradyne share priceUse our graph to track the performance of TER stocks over time.
Teradyne shares at a glance
|52-week range||US$73.8955 - US$147.6781|
|50-day moving average||US$126.3771|
|200-day moving average||US$125.0206|
|Dividend yield||US$0.4 (0.31%)|
|Earnings per share (TTM)||US$4.398|
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Is it a good time to buy Teradyne stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Teradyne price performance over time
|1 month (2021-05-21)||-0.02%|
|3 months (2021-03-19)||8.66%|
|6 months (2020-12-18)||3.54%|
|1 year (2020-06-19)||50.89%|
|2 years (2019-06-20)||170.26%|
|3 years (2018-06-20)||218.52%|
|5 years (2016-06-20)||539.98%|
Is Teradyne under- or over-valued?
Valuing Teradyne stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Teradyne's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Teradyne's P/E ratio
Teradyne's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 29x. In other words, Teradyne shares trade at around 29x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Teradyne's PEG ratio
Teradyne's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.37. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Teradyne's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Teradyne's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1.1 billion.
The EBITDA is a measure of a Teradyne's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$3.2 billion|
|Operating margin TTM||29.04%|
|Gross profit TTM||US$1.8 billion|
|Return on assets TTM||17.75%|
|Return on equity TTM||41.98%|
|Market capitalisation||US$21.4 billion|
TTM: trailing 12 months
Shorting Teradyne shares
There are currently 4.1 million Teradyne shares held short by investors – that's known as Teradyne's "short interest". This figure is 18.3% down from 5.0 million last month.
There are a few different ways that this level of interest in shorting Teradyne shares can be evaluated.
Teradyne's "short interest ratio" (SIR)
Teradyne's "short interest ratio" (SIR) is the quantity of Teradyne shares currently shorted divided by the average quantity of Teradyne shares traded daily (recently around 1.5 million). Teradyne's SIR currently stands at 2.82. In other words for every 100,000 Teradyne shares traded daily on the market, roughly 2820 shares are currently held short.
However Teradyne's short interest can also be evaluated against the total number of Teradyne shares, or, against the total number of tradable Teradyne shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Teradyne's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Teradyne shares in existence, roughly 20 shares are currently held short) or 0.0249% of the tradable shares (for every 100,000 tradable Teradyne shares, roughly 25 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Teradyne.
Find out more about how you can short Teradyne stock.
Teradyne's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Teradyne.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Teradyne's total ESG risk score
Total ESG risk: 24.17
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Teradyne's overall score of 24.17 (as at 12/31/2018) is pretty good – landing it in it in the 28th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Teradyne is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Teradyne's environmental score
Environmental score: 11.2/100
Teradyne's environmental score of 11.2 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Teradyne is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Teradyne's social score
Social score: 10.6/100
Teradyne's social score of 10.6 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Teradyne is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Teradyne's governance score
Governance score: 10.36/100
Teradyne's governance score puts it squarely in the 7th percentile of companies rated in the same sector. That could suggest that Teradyne is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Environmental, social, and governance (ESG) summary
|Total ESG score||24.17|
|Total ESG percentile||27.95|
|Environmental score percentile||7|
|Social score percentile||7|
|Governance score percentile||7|
Teradyne share dividends
Dividend payout ratio: 8.47% of net profits
Recently Teradyne has paid out, on average, around 8.47% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.31% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Teradyne shareholders could enjoy a 0.31% return on their shares, in the form of dividend payments. In Teradyne's case, that would currently equate to about $0.4 per share.
While Teradyne's payout ratio might seem low, this can signify that Teradyne is investing more in its future growth.
Teradyne's most recent dividend payout was on 17 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 24 May 2021 (the "ex-dividend date").
Have Teradyne's shares ever split?
Teradyne's shares were split on a 2:1 basis on 31 August 1999. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Teradyne shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Teradyne shares which in turn could have impacted Teradyne's share price.
Teradyne share price volatility
Over the last 12 months, Teradyne's shares have ranged in value from as little as US$73.8955 up to US$147.6781. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Teradyne's is 1.2793. This would suggest that Teradyne's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, smartphones, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. The Industrial Automation segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and light industrial customers. The Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices and modules, smart phones, tablets, notebooks, laptops, peripherals, and Internet-of-Things devices under the LitePoint brand name. This segment also offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, LTE-A, and 5G technologies; IQcell, a multi-device cellular signaling test solution; IQgig test solution; and turnkey test software for wireless chipsets. The company was incorporated in 1960 and is headquartered in North Reading, Massachusetts.
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