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Teradyne Inc. (NASDAQ:TER): The Fundamentals Have Changed

Teradyne Inc. (NASDAQ:TER) shares fell to a low of $123.53 before closing at $124.86. Intraday shares traded counted 2.73 million, which was -76.0% lower than its 30-day average trading volume of 1.55M. TER’s previous close was $129.59 while the outstanding shares total 166.49M. The firm has a beta of 1.28, a 12-month trailing P/E ratio of 28.36, and a growth ratio of 2.05. The stock’s Relative Strength Index (RSI) is 45.48, with weekly volatility at 3.26% and ATR at 4.26. The TER stock’s 52-week price range has touched low of $74.07 and a $147.90 high. The stock traded lower over the last trading session, losing -3.65% on 06/18/21.

Investors have identified the Semiconductor Equipment & Materials company Teradyne Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $21.55 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Teradyne Inc. (TER) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TER, the company has in raw cash 831.15 million on their books with 11.06 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.5 billion total, with 686.84 million as their total liabilities.

TER were able to record -1.11 million as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by -82.97 million. In cash movements, the company had a total of 38.14 million as operating cash flow.

Potential earnings growth for Teradyne Inc. (TER)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, Teradyne Inc. recorded a total of 781.61 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.88% coming in sequential stages and their sales for the 07/27/2021 quarter increasing by 2.9%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 319.99 million trying to sell their products during the last quarter, with the result yielding a gross income of 461.62 million. This allows shareholders to hold on to 166.49M with the recently reported earning now reading 1.23 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (1.11 cents a share).

Having a look at the company’s valuation, the company is expected to record 5.65 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TER sounds very interesting.

Is the stock of TER attractive?

In related news, VP and Chief Financial Officer, Mehta Sanjay sold 5,212 shares of the company’s stock in a transaction that recorded on Jun 16. The sale was performed at an average price of 131.37, for a total value of 684,700. As the sale deal closes, the VP, General Counsel, Secretary, Gray Charles Jeffrey now sold 7,000 shares of the company’s stock, valued at 884,240. Also, President and CEO, JAGIELA MARK E sold 90,545 shares of the company’s stock in a deal that was recorded on Mar 18. The shares were price at an average price of 114.38 per share, with a total market value of 10,356,428. Following this completion of acquisition, the Director, GILLIS EDWIN J now holds 19,015 shares of the company’s stock, valued at 2,116,179. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.

10 out of 19 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Teradyne Inc.. 1 analysts has assigned a Sell rating on the TER stock. The 12-month mean consensus price target for the company’s shares has been set at $145.35.

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