TER slides over 5% as sellers dominate despite higher dividends and rising revenue

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Teradyne slides 5.25% today on selling

Highlights

Teradyne declared a quarterly dividend of $0.13 per share, payable September 25, with ex-dividend date on September 4.
Revenue increased 103.9% year-over-year and analysts project earnings of 9.1 per share for the current year.
Shares of Teradyne fell 5.25% to $331.48 under strong intraday selling pressure, with price action forecast to range between $310.69 and $343.53 over the next five days.

Dividend announcement and strong revenue fail to ease selling pressure

Teradyne declared a quarterly dividend of $0.13 per share, payable on September 25, 2024, with the ex-dividend date set for September 4. The latest quarterly results showed revenue rising 103.9% year-over-year and analysts have projected earnings of 9.1 per share for the current year. Recent disclosures also noted ongoing demand for semiconductor test equipment in its Q2 2026 financial report, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees the recent price drop in Teradyne as a clear sign that sellers remain in control, despite strong revenue growth and confirmed dividend payouts. He notes technical weakness, with shares stuck below short- and medium-term moving averages. Kharitonov highlights waning momentum, low conviction in trend, and an overall lack of positive sentiment even after positive quarterly news. He warns that sustained price support is tenuous, with risk of further losses if $328.1 is breached. "Investors should remain cautious — there is little evidence of a reversal and downside pressure dominates this setup."

Viktoras Karapetjanc, expert at Traders Union, believes Teradyne’s exceptional 103.9% revenue growth and consistent dividend payments signal enduring business strength. He sees ongoing demand for semiconductor test equipment as a major tailwind, reinforcing robust fundamentals. Karapetjanc notes the longer-term bullish alignment remains intact, with the 50-day average still above the 200-day. He anticipates that once short-term pressure clears, the stock could resume its uptrend. "Further growth is likely as structural drivers and improving quarterly results lay the groundwork for recovery."

Jainam Mehta, market strategist, sees Teradyne facing tactical pressure but notes the broader uptrend is unbroken above the 200-day average. He suggests the sideways consolidation may create a contrarian opportunity if sellers exhaust around $328.1 support. "A potential breakout above $342.31 could trigger a retest of recent highs — traders should watch for volatility-driven entries."

Weak momentum lingers despite long-term uptrend and oversold signals

Teradyne is trading below its 20-day ($384.58) and 50-day ($380.01) moving averages, indicating short- and medium-term pressure from sellers. The price is still holding above the longer-term 200-day average at $312.86, supporting a broader uptrend. The nearest resistance is at $342.31, with support at $328.1. The 50-day average above the 200-day signals a bullish longer-term alignment. Momentum signals remain weak, with a MACD of -7.2 (neutral forecast) and an ADX of 7.42, indicating limited directional conviction. The RSI at 42.59 gives a 'Sell' reading, while the Stochastic RSI, Commodity Channel Index, and Bull/Bear Power all show oversold conditions. The Awesome Oscillator supports continued downside pressure. Intraday volatility is elevated at 4.33%, and price action has stayed under pressure following a downside gap.

Earlier, analysts noted that despite Teradyne's strong earnings and new dividend announcements, persistent selling and technical weakness kept shares under pressure. The current article reinforces this dynamic, highlighting that further volatility is likely and that a sustained move above or below the $342.31 and $328.1 levels, respectively, will define the near-term trading direction.

Source of Data: TER Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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