Key insights
- Teradyne's CEO sold $2.9M in shares under a 10b5-1 plan amidst a recent stock decline, while also exercising stock options. JPMorgan upgraded Teradyne to Overweight. The company declared a quarterly dividend of $0.13/share. Overall, the insider selling and 'overvalued' signal slightly outweigh the positive analyst action, suggesting mild bearish pressure.
Gregory Stephen Smith, President and CEO of Teradyne, Inc. (NASDAQ:TER), reported insider transactions on May 15, 2026, including the sale of company stock valued at approximately $2.91 million. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission.
Mr. Smith disposed of 8,597 shares of Teradyne common stock at a price of $338.98 per share, resulting in a total value of $2,914,211. The sale came as Teradyne stock has declined 10% over the past week, though shares remain up nearly 296% over the past year with a market capitalization of $50.3 billion.
Concurrently, Mr. Smith acquired 4,597 shares of common stock through the exercise of stock options. These shares were acquired at an exercise price of $72.10 per share, totaling $331,443. The options were granted under the company’s 2006 Equity and Cash Compensation Incentive Plan and became exercisable at a rate of 25% per year beginning on January 24, 2021.
All reported transactions were executed pursuant to a Rule 10b5-1 trading plan, which Mr. Smith adopted on February 12, 2026. Following these transactions, Mr. Smith directly holds 124,469.5729 shares of Teradyne common stock. According to InvestingPro analysis, Teradyne currently appears overvalued relative to its Fair Value estimate. Investors can access comprehensive Pro Research Reports and additional insights on Teradyne alongside 1,400+ other US equities.
In other recent news, Teradyne Inc. announced a quarterly cash dividend of $0.13 per share, payable on June 12, 2026, to shareholders of record by May 21, 2026. The company also held its 2026 annual meeting, where shareholders elected all nominated directors and approved key proposals. The elected board members include Drew Henry, Peter Herweck, and Mercedes Johnson, among others, with vote totals exceeding 110 million in favor.
In the realm of analyst activity, JPMorgan upgraded Teradyne to Overweight from Neutral, citing long-term growth drivers and setting a price target of $400.00. The upgrade follows a significant post-earnings stock decline, with JPMorgan noting the revenue trajectory remains largely unchanged. Meanwhile, Northland reiterated a Market Perform rating with a $270.00 price target, expressing concerns over AI spending potentially slowing in 2027 due to increased financial discipline among AI labs.
Additionally, Aletheia highlighted growth opportunities for Teradyne, focusing on the company’s expansion in merchant GPU and co-packaged optics technology. Despite a decline in Taiwan’s tester shipments from the previous month’s peak, the three-month moving average indicates sustained demand in the sector.
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