In a recent transaction, Richard John Burns, President of Semiconductor Test at Teradyne, Inc. (NYSE:NASDAQ:TER), sold shares of the company's stock. On October 1 and October 2, Burns sold a total of 980 shares of Teradyne stock, at prices ranging from $129.68 to $132.80 per share, resulting in a total value of $129,548.
This sale was part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a trading plan for selling stocks they own in accordance with the guidelines set to prevent insider trading. The transactions were carried out automatically according to the plan set up on February 15, 2024.
In addition to the sales, Burns also acquired 789 shares of Teradyne common stock through the exercise of options on October 1, at a price of $81.30 per share, totaling $64,145. These options were granted under Teradyne's 2006 Equity and Cash Compensation Incentive Plan and became exercisable in increments since the first anniversary of the grant on October 1, 2021.
Furthermore, on the same day, Burns had 358 shares withheld by the company valued at $128.99 per share, amounting to $46,178, to satisfy tax withholding obligations connected with the vesting of restricted stock units.
After these transactions, the updated holdings of Burns in Teradyne stock were reported to be 21,506.161 shares. It is noted that the transactions did not affect Burns's direct ownership stake in the company, as all shares were held directly by him.
Investors and followers of Teradyne's stock activity often monitor insider sales and purchases as they provide insight into how executives perceive the value of the company's stock. However, it is important to consider that selling shares does not necessarily indicate a lack of confidence in the company by the executive; it may be part of personal financial planning or diversification strategies.
For more detailed information regarding the transactions, interested parties can refer to the Form 4 filed with the Securities and Exchange Commission.
In other recent news, Teradyne Inc . has been making significant strides in both its financial and operational endeavors. The company declared a quarterly cash dividend of $0.12 per share, continuing its practice of returning value to shareholders. For Q2 2024, Teradyne reported earnings with revenue of $730 million and a non-GAAP EPS of $0.86, with the Robotics business witnessing a 26% year-over-year increase in revenue.
In the realm of strategic partnerships, Teradyne Robotics has teamed up with Siemens to develop a robotics showcase at the MxD innovation center in Chicago. This collaboration aims to push the boundaries of industrial automation, with demonstrations mimicking real factory line setups across various industries.
Analysts have also been active in evaluating Teradyne. Cantor Fitzgerald upgraded the company to Overweight from Neutral, citing strong positioning in high-growth sectors and a potential EPS of $7.00+ by 2026. Baird raised its price target for Teradyne, reflecting a strong second quarter and potential growth from artificial intelligence-related drivers. Conversely, Citi reduced its price target for Teradyne while maintaining a Buy rating, due to updated system-on-chip total addressable market assumptions. These are among the recent developments surrounding Teradyne.
InvestingPro Insights
To provide additional context to Richard John Burns' recent stock transactions at Teradyne, Inc. (NYSE:TER), let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Teradyne boasts a market capitalization of $21.02 billion, reflecting its significant presence in the semiconductor test equipment industry. The company's P/E ratio stands at 40.01, indicating that investors are willing to pay a premium for Teradyne's earnings. This aligns with an InvestingPro Tip noting that Teradyne is "Trading at a high earnings multiple."
Teradyne's financial health appears robust, with an InvestingPro Tip highlighting that "Cash flows can sufficiently cover interest payments." This suggests that the company maintains a strong liquidity position, which is crucial in the capital-intensive semiconductor industry.
Another noteworthy InvestingPro Tip reveals that Teradyne "Has maintained dividend payments for 11 consecutive years." This consistent dividend history may be attractive to income-focused investors and could partly explain why executives like Burns might retain a significant portion of their holdings despite occasional sales.
For readers interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for Teradyne, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.