Traders Purchase High Volume of Call Options on Teradyne (NASDAQ:TER)

Teradyne, Inc. (NASDAQ:TER) saw some unusual options trading on Monday. Stock investors purchased 19,317 call options on the company. This is an increase of 295% compared to the typical volume of 4,886 call options.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Cantor Fitzgerald lifted their price objective on Teradyne from $240.00 to $270.00 and gave the company an “overweight” rating in a research note on Monday. Vertical Research cut shares of Teradyne from a “buy” rating to a “hold” rating and set a $220.00 price objective for the company. in a research report on Friday, January 9th. Bank of America boosted their price objective on shares of Teradyne from $250.00 to $260.00 and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Stifel Nicolaus upped their price target on Teradyne from $270.00 to $280.00 and gave the stock a “buy” rating in a report on Friday. Finally, Royal Bank Of Canada set a $270.00 price target on shares of Teradyne in a research note on Monday. Ten research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $218.06.

Key Stories Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q4 results topped estimates — non‑GAAP EPS $1.80 vs. $1.36 expected and revenue of $1.083B, providing the immediate earnings beat that pushed the stock higher. Teradyne Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Very bullish Q1 guidance — company guided to EPS $1.890–2.250 and revenue $1.2–1.3B, well above consensus; that outsized guide signals continued strength from large AI/data‑center customers. Teradyne forecasts upbeat quarterly revenue
• Positive Sentiment: AI-driven demand cited as the core growth driver — fourth‑quarter profit rose to $257.2M from $146.3M a year earlier as semiconductor/robotics test demand surged. This narrative supports forward revenue visibility. Teradyne Profit Rises as Sales Surge on AI-Related Demand
• Positive Sentiment: Unusually large call‑option buying ahead of/around results indicates bullish positioning from traders (large call volume can amplify near-term upside momentum).
• Neutral Sentiment: Analysts updated estimates ahead of/after the print — some top analysts raised forecasts, which partly explains elevated expectations and volatility around the release. Teradyne Earnings Are Imminent; Analysts Revise Forecasts
• Neutral Sentiment: Valuation and expectations are elevated — TER now trades with a high trailing P/E and near its 52‑week high, so future upside may depend on continued execution and how durable AI-driven orders prove to be.

Insider Buying and Selling at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 1,108 shares of the business’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $201.31, for a total value of $223,051.48. Following the completion of the transaction, the chief executive officer directly owned 93,409 shares of the company’s stock, valued at approximately $18,804,165.79. The trade was a 1.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.16% of the company’s stock.

Institutional Trading of Teradyne

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP lifted its position in shares of Teradyne by 13,949.4% during the 3rd quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock valued at $280,357,000 after buying an additional 2,022,389 shares during the last quarter. Norges Bank bought a new position in Teradyne in the second quarter worth about $152,854,000. Federated Hermes Inc. increased its stake in shares of Teradyne by 79.7% during the second quarter. Federated Hermes Inc. now owns 3,785,067 shares of the company’s stock valued at $340,353,000 after purchasing an additional 1,679,215 shares in the last quarter. Amundi grew its holdings in shares of Teradyne by 255.3% during the second quarter. Amundi now owns 1,812,001 shares of the company’s stock valued at $170,654,000 after buying an additional 1,302,025 shares during the last quarter. Finally, Primecap Management Co. CA increased its position in Teradyne by 58.6% during the second quarter. Primecap Management Co. CA now owns 3,047,558 shares of the company’s stock valued at $274,036,000 after acquiring an additional 1,125,868 shares during the last quarter. Institutional investors own 99.77% of the company’s stock.

Teradyne Price Performance

Shares of NASDAQ:TER opened at $249.53 on Tuesday. The business has a 50-day moving average of $209.29 and a two-hundred day moving average of $159.13. Teradyne has a fifty-two week low of $65.77 and a fifty-two week high of $255.20. The stock has a market capitalization of $39.08 billion, a P/E ratio of 90.74, a P/E/G ratio of 1.73 and a beta of 1.84.

Teradyne (NASDAQ:TER) last released its quarterly earnings data on Monday, February 2nd. The company reported $1.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.44. Teradyne had a return on equity of 18.04% and a net margin of 15.49%.The firm had revenue of $1.08 billion during the quarter, compared to analyst estimates of $970.44 million. During the same period in the prior year, the company posted $0.95 earnings per share. The business’s revenue for the quarter was up 43.9% compared to the same quarter last year. Teradyne has set its Q1 2026 guidance at 1.890-2.250 EPS. As a group, research analysts expect that Teradyne will post 3.88 EPS for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 13th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, February 13th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. Teradyne’s payout ratio is 18.91%.

About Teradyne

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.