Teradyne CEO Gregory Smith Sells 4,000 Shares for $1.7 Million
Key Points
The executive sold 4,000 shares for $1.7 million on August 17, 2026.
The transaction represented a 3% reduction in total direct equity holdings.
The disposal was conducted through direct ownership and did not involve any indirect entities.
The trade was executed under a Rule 10b5-1 plan established in February 2026, following a 306% one-year return for the stock as of the transaction date.
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Gregory Stephen Smith, President and CEO of Teradyne, Inc. (NASDAQ:TER), sold 4,000 shares of common stock on Aug. 17, 2026, according to a SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | $1.7 million |
| Shares sold (directly held) | 4,000 |
| Post-transaction shares (directly held) | 112,495 |
| Post-transaction value | $49.85 million |
Transaction value based on SEC Form 4 weighted average sale price ($425.00); post-transaction value based on Aug. 17, 2026 market close ($443.14).
Key questions
- Under what conditions was this sale executed?
The transaction was carried out pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on Feb. 12, 2026, providing a structured schedule for the disposal of shares. - What is the scale of the remaining equity position?
Following the sale of 4,000 shares, the executive maintains a direct position of 112,495.4075 shares, representing approximately 0.0720% of the company. - How has the stock performed leading up to this transaction?
As of the Aug. 17, 2026 market close, the stock had achieved a 306% total return over the preceding 12 months. - What is the current market value of the executive's total beneficial holdings?
The remaining shares are valued at $49.85 million based on the market close of $443.14 as of Aug. 17, 2026.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-08-17) | $443.14 |
| Market Capitalization | $69.3 billion |
| Revenue (TTM) | $4.5 billion |
| Net Income (TTM) | $1.2 billion |
Company Snapshot
- Teradyne designs, manufactures, sells, and services automated testing equipment and solutions for semiconductor manufacturers, with primary revenue derived from semiconductor test systems that validate microchips at both the wafer and finished-device stages across automotive, industrial, telecom, and consumer electronics applications.
- The company operates a diversified business model generating revenue through the sale of test equipment, software platforms, and support services, with recurring revenue streams from maintenance contracts and customer support services that provide stable cash flow and enhance customer retention.
- Teradyne serves semiconductor manufacturers, integrated device manufacturers, and fabless design companies globally, with particular strength in serving leading-edge chip producers in automotive, 5G telecommunications, and industrial computing markets.
Teradyne is a global leader in automated semiconductor testing solutions with a market capitalization of $69.3 billion and TTM revenues of $4.5 billion, demonstrating substantial scale and profitability with TTM net income of $1.2 billion.
The company has experienced significant momentum, with a one-year share price appreciation of 306%, reflecting strong demand for semiconductor test equipment driven by industrywide capacity expansion and advanced node development.
Teradyne's competitive advantage is anchored in its comprehensive portfolio of test platforms, deep customer relationships with major semiconductor manufacturers, and integrated software and services that create switching costs and generate recurring revenue.
What this transaction means for investors
This sale shouldn't concern investors. It represented a small percentage of the CEO's total stake and was a pre-planned transaction under a Rule 10b5-1 plan. This is commonly used to allow insiders to make planned sales while avoiding conflicts of interest or the appearance of acting on material non-public information.
Importantly, Teradyne is performing well, with TTM revenue soaring over the past year. This has also fueled a higher margin and earnings.
The stock is not cheap, trading at a high price-to-earnings multiple, yet analysts are also projecting strong earnings growth to continue. The current consensus estimate calls for earnings to grow at an annualized rate of 28% in the coming years.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teradyne. The Motley Fool has a disclosure policy.
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