NYSTRS Lowers Stake in Teradyne, by 4.9% in Q1
July 20, 2023
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Teradyne ($NASDAQ:TER), Inc. is a leading provider of advanced robotic automation solutions for the manufacturing industry. The company’s stock has seen a steady increase in value in recent years, making it a popular choice among investors.
However, this latest filing from the NYSTRS indicates that they may be beginning to pull back their involvement in the company. The SEC’s most recent filing shows that the New York State Teachers Retirement System had significantly reduced its stake in Teradyne by 4.9% in the 1st quarter of the year. This may be an indication that the pension system believes that the stock is now overvalued and is therefore looking to reduce its exposure to the company. It is also possible that the NYSTRS had other financial motivations for divesting its stake in the company. Whatever the reason, it is certainly a major change in their involvement with Teradyne. This news may be concerning for current shareholders of Teradyne as the NYSTRS’ decision may have an impact on the stock’s performance in the near future. Investors will be keeping a close eye on the company’s stock in the coming months to assess whether this change will have a significant effect on its value.
Analysis
As part of our financial analysis of TERADYNE, we used our Star Chart to evaluate the company’s fundamentals. The results showed that TERADYNE was strong in terms of assets, dividend, and profitability, and medium in terms of growth. We also gave TERADYNE a health score of 10/10 due to its strong cashflows and low debt, indicating that it is capable to pay off debt and fund future operations. Based on these findings, we classified TERADYNE as a ‘cow’, which is a type of company that has the track record of paying out consistent and sustainable dividends. Investors who are looking for stable income that is not affected by market volatility may be interested in such a company. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Teradyne. More…
| Total Revenues | Net Income | Net Margin |
| 3.02k | 637.1 | 21.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Teradyne. More…
| Operations | Investing | Financing |
| 589.8 | 31.6 | -767.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Teradyne. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.38k | 933.95 | 15.76 |
Key Ratios Snapshot
Some of the financial key ratios for Teradyne are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.4% | 5.0% | 25.2% |
| FCF Margin | ROE | ROA |
| 14.2% | 19.4% | 14.1% |
Peers
The competition between Teradyne Inc and its competitors is fierce. Lam Research Corp, Taiwan Semiconductor Manufacturing Co Ltd, and Apple Inc are all major players in the market. Teradyne Inc has been able to stay ahead of the competition by innovating and developing new products.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is an American company that manufactures semiconductor processing equipment used in the fabrication of integrated circuits. The company was founded in 1980 and is headquartered in Fremont, California. Lam Research has a market capitalization of $51.81 billion as of March 2021 and a return on equity of 54.63%. The company’s products are used in a variety of applications, including memory chips, microprocessors, and graphics processors.
– Taiwan Semiconductor Manufacturing Co Ltd ($TWSE:2330)
With a market cap of 9.75T as of 2022, Taiwan Semiconductor Manufacturing Co Ltd is one of the largest companies in the world. The company’s return on equity is 22.34%, meaning that it generates a significant amount of profit for shareholders. Taiwan Semiconductor Manufacturing Co Ltd is a leading provider of semiconductor manufacturing services and one of the largest manufacturers of semiconductors in the world. The company’s products are used in a wide range of electronic devices, including computers, mobile phones, and consumer electronics.
– Apple Inc ($NASDAQ:AAPL)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iCloud, and iTunes. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple was incorporated as Apple Computer, Inc., in 1977. The word “Computer” was removed from the company’s name in 2007, as its traditional focus on personal computers shifted towards consumer electronics.
Summary
This suggests a lack of confidence in the company’s future and warrants further analysis. Investors should research past financial performance and evaluate potential risks such as technological disruption or economic downturns. They should also consider factors such as potential opportunities for growth, competitive advantage, and the positioning of the company in the market. Evaluating management’s track record and strategy for success is also important in making an informed decision before investing in TERADYNE, Inc.
