Stock Analysis | Teradyne Outlook - Mixed Signals Amid Rising Price and Analyst Neutrality

Market Snapshot

Takeaway: Teradyne (TER) is trading higher by 4.25% in the last 5 days, with analysts divided on the outlook—though the technical signal is neutral, bullish indicators outweigh bearish ones.

News Highlights

Recent developments in the semiconductor sector are shaping the backdrop for Teradyne:

• McKinsey on Tariffs and Chip Supply Chains: The consulting firm’s latest analysis suggests that U.S. tariffs may persist, which could influence global semiconductor manufacturing dynamics, including Teradyne’s operations.
• Japan-U.S. Cooperation Plans: The Japanese government is reportedly planning to propose enhanced collaboration with the U.S. on rare earth materials and semiconductor production. This could indirectly boost demand for Teradyne's testing and measurement tools.
• Semiconductor ETF Outflows: The US Semiconductors ETF (SOXX) saw a $750 million net outflow in May 2025. While this reflects broader sector jitters, it may also highlight investor caution that could temporarily weigh on stocks like Teradyne.

Analyst Views & Fundamentals

Analyst sentiment for Teradyne is mixed. The simple average rating is 3.80, while the performance-weighted rating is 4.62. These scores suggest optimism, though the ratings themselves are not entirely aligned—out of the five recent analyst ratings, three were “Neutral” and two were “Strong Buy.”

This lack of consensus contrasts with the current 4.25% price rise, which suggests the market is already factoring in some level of positive momentum. Notably, the weighted rating of 4.62 is higher than the average, implying that stronger-performing analyst teams have a more bullish stance.

Fundamental Factors

• Net Cash Flow from Operating Activities per Share (YoY Growth Rate %): -95.06% — this metric scored 1.00 in our internal diagnostic model (0-10), suggesting a significant drop in operating cash flow per share.
• Net Profit Attributable to Parent Company Shareholders / Net Profit (%): 100.00% — the score for this was 1.00, indicating the parent company retained all net profit.
• EV/EBIT: 91.39 — this factor scored 3.00 internally, showing a moderate valuation.
• Total Profit (YoY Growth Rate %): -30.18% — the score was 3.00, indicating a slowdown in total profit.
• Net Cash Flow from Operating Activities (YoY Growth Rate %): 53.89% — scored 3.00, signaling moderate improvement in cash generation.
• Cash-UP: 6.31% — received a 3.00 score, showing a modest positive trend in cash flow.
• Interest Coverage Ratio (EBIT / Interest Expense) (%): -89.36% — scored 3.00, indicating pressure on debt servicing.
• Total Assets Turnover Ratio: 35.81% — the internal score is 4.00, implying reasonable efficiency in asset use.
• Net Profit Attributable to Parent Company Shareholders (YoY Growth Rate %): -29.23% — scored 3.00, suggesting a decline in profit to shareholders.
• Cash-MV: -0.71 — scored 0.00, indicating weak cash flow relative to market value.

Money-Flow Trends

Money flow for Teradyne shows a nuanced picture. The overall fund-flow score is 7.56, which we consider “good.”

• Small investors have shown a positive trend, with an inflow ratio of 52.76%.
• Medium-sized flows are also positive at 51.21%.
• Large investors are slightly positive too, with 51.41% inflow.
• Extra-large institutional investors, however, are negative with a 44.05% inflow ratio, suggesting some caution at the top end of the market.

Interestingly, block flows (large institutional trades) are negative at 44.77%, showing a divergence between smaller and larger investors. This mix suggests that while retail and mid-sized investors are bullish, major institutions may be taking a more measured approach.

Key Technical Signals

Technically, Teradyne is in a state of neutrality with a score of 6.08. Three bullish indicators are currently active, while only one is bearish.

Internal Diagnostic Scores for Indicators

• WR Overbought: Score 1.00 — a bearish signal, suggesting overbought conditions.
• Ex-Dividend Date: Score 7.60 — a strong bullish signal related to dividend timing.
• Dividend Record Date: Score 7.60 — another strong bullish signal tied to the dividend calendar.
• Bullish Engulfing: Score 8.12 — a very strong bullish candlestick pattern.

Recent Chart Activity

• 2025-09-05: Ex-Dividend Date and Dividend Record Date activated simultaneously.
• 2025-09-02: Bullish Engulfing and WR Overbought both flagged.
• 2025-08-29: WR Overbought triggered again.

This mix suggests that dividend-related optimism is countering a minor overbought warning from the Williams %R. Overall, the technical signal suggests that while the trend is not yet clear, the bullish indicators (3) significantly outweigh the bearish one (1).

Conclusion

Teradyne appears to be in a mixed but potentially constructive position. The stock is rising, with strong dividend-related signals and positive fundamental performance in some areas, though others show weakness. Analysts are divided, and while technical indicators are in a neutral range, the bullish bias is strong.

Actionable takeaway: Investors might consider watching the upcoming earnings report to assess if the recent price rise is justified. Meanwhile, the presence of high internal diagnostic scores around bullish candlestick patterns and dividend dates makes a case for keeping the stock on radar, especially if the short-term volatility clears up.