Teradyne (TER) Falls Following Insider Selling As Fair Value Debate Sharpens

Teradyne (TER) shares fell 5.1% on July 13, 2026, extending a decline of 10.1% over the past week and 15.4% over the last month, after signals of potential overvaluation and insider selling.

See our latest analysis for Teradyne.

Zooming out, Teradyne’s share price has a year to date return of 70.18% and a one year total shareholder return of 280.67%, suggesting strong long term momentum despite a 12.39% decline over the past month.

If the recent volatility around Teradyne has you looking across the sector, this could be a useful moment to scan 33 robotics and automation stocks for other robotics and automation opportunities.

After such a sharp pullback in Teradyne, some investors will be tempted to treat the drop as a chance to buy, while others may prefer to wait for a clearer reset in expectations. This raises the question: how stretched does the current valuation look?

Most Popular Narrative: 15.2% Undervalued

Compared with Teradyne's last close at $353.23, the most followed narrative points to a higher fair value of $416.65 based on detailed long term forecasts.

The analysts have a consensus price target of $416.65 for Teradyne based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $550.0, and the most bearish reporting a price target of just $270.0.

Read the complete narrative.

Want to see why this fair value sits well above today’s price? The core of the narrative rests on faster earnings growth, wider margins, and a richer future earnings multiple. Curious which specific long range revenue path and profit profile are doing the heavy lifting in that model? The full breakdown joins those moving parts with a single discount rate to reach that $416.65 figure.

Result: Fair Value of $416.65 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Teradyne’s story also leans on assumptions that could be challenged if tariffs weigh on customer demand or if robotics weakness persists longer than analysts currently model.

Find out about the key risks to this Teradyne narrative.

Another View on Teradyne’s Valuation

The analyst fair value narrative points to Teradyne trading below a $416.65 target, yet Simply Wall St’s DCF model tells a different story. On that framework, Teradyne at $353.23 sits above an estimated future cash flow value of $197.21, which suggests the stock screens as expensive rather than cheap. For an investor, that kind of gap raises a simple question: which set of assumptions feels more realistic for the next phase of the Teradyne story?

To see how that cash flow based view is built and what it assumes for Teradyne over time, Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Teradyne for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 44 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If the cross currents around Teradyne leave you unsure which way the story leans, use the data to move quickly and form your own judgment. To weigh both the concerns and the potential upside in one place, review the 2 key rewards and 1 important warning sign

Looking for more investment ideas beyond Teradyne?

If Teradyne has sharpened your focus, do not stop here. Use these screeners to quickly surface other stocks that might fit your approach before the crowd catches on.

• Target potential bargains by running the 44 high quality undervalued stocks, which filters for companies combining quality fundamentals with prices that sit below their estimated worth.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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