A Favorite Among Institutions: Teradyne, Inc. (NYSE:TER)

Teradyne, Inc. (NYSE:TER)’s shares are under review with key ownership changing hands of late.

Investors may be diving into the latest company earnings reports trying to scope out some quality stocks to add to the portfolio. Nobody knows for sure which way overall market momentum will sway as we near the close of the calendar year. Investors may be getting ready to do a portfolio review to see which stocks are worthy to hold, and which ones have underperformed a may need to be unloaded. Regularly monitoring stock investments may keep the investor ready for any big market changes that may occur.

Teradyne, Inc. (NYSE:TER)’s stock has been a favorite of “smart money” aka institutions, as of late.  Institutions are currently holders of 98.50% of the shares.  On the other hand, company insiders are holding 0.70%.  Teradyne, Inc.’s stock price currently sits at $83.01.

Active traders are often looking for the next great move to secure profits in the stock market. Traders might be tracking stocks that are primed for a breakout. When a stock suddenly breaks to the upside, it has the potential to bring the optimistic crowd along with it. The breakout may bring in traders who missed out on the beginning of a run trying to capitalize on the back end. The professional trader is typically one who is able to stand out from the crowd. Being able to separate fantasy from reality can mean big profits for the dedicated trader. Impulse buying or selling on good or bad news is common in the stock market. Being able to come to a reasonable conclusion about why stock prices are headed one way and not the other can be a tough proposition. Paying attention to all the headlines may lead some traders down the path of no return if trades are being made strictly on daily news or even perception or that news. Discerning between what is actually driving a stock and what is perceived to be driving a stock may end up being a large factor between future gains and losses in the equity market.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Teradyne, Inc. (NYSE:TER)’s stock was 21.47%.  Over the last week of the month, it was -1.22%, 49.95% over the last quarter, and  19.80% for the past six months. 

Over the past 50 days, Teradyne, Inc. stock was -2.82% off of the high and 47.13% removed from the low.  Their 52-Week High and Low are noted here.  -2.82% (High), 93.63%, (Low). 

Technical Analysis

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Teradyne, Inc. (NYSE:TER)’s RSI (Relative Strength Index) is 65.05.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Many investors may have noticed that when the stock market has been running bullishly hot for quite some time, market tops can be a very busy place. Trading interest may be noticeably higher when the good times are rolling. This can be tricky because often times, prices may become inflated and somewhat overvalued. Traders will need to pay much more attention to what is going on at the tops of these bull runs. When interest is heightened, traders who got in at much better prices may be looking to unload the winners for quick profits. Doing the proper research can help clear out some of the fog that comes with an oversaturated market. Chartists will most likely be paying attention to price moves and trying to spot the next series of trends that develop. Spotting a trend earlier than the crowd may help the trader sell before the big drop or buy before the big rise. Learning how opportunities unfold and present themselves in the stock market may take a lot of time and effort to master. Professional traders are typically a few moves ahead of the novice and relatively naive trader. Getting to that next level should be on the mind of any dedicated trader or investor. Learning from past mistakes can make a huge difference in the future of the trader’s profits and psyche.

Another important element to consider is the price target and recommendations from brokerage firm analysts.  On a consensus basis the Street sees the stock heading to 72.12 in the near term.  Based on a 1 to 5 integer scale, analysts have a 2.50 recommendation on the name.

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