Should You Avoid Teradyne, Inc. (TER)?

Since Teradyne, Inc. (NYSE:TER) has faced a bearish sentiment from the entirety of the hedge funds we track, we can see that there exists a select few hedge funds who were dropping their entire stakes last quarter. At the top of the heap, Ron Gutfleish’s Elm Ridge Capital dropped the biggest position of the “upper crust” of funds monitored by Insider Monkey, totaling close to $8.2 million in stock, and Renaissance Technologies was right behind this move, as the fund cut about $7.6 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 5 funds last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Teradyne, Inc. (NYSE:TER) but similarly valued. We will take a look at Syntel, Inc. (NASDAQ:SYNT), Bank Of The Ozarks Inc (NASDAQ:OZRK), Dun & Bradstreet Corp (NYSE:DNB), and LPL Financial Holdings Inc (NASDAQ:LPLA). This group of stocks’ market values is closest to Teradyne, Inc. (NYSE:TER)’s market value.

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $431 million. That figure was $539 million in Teradyne, Inc. (NYSE:TER)’s case. Dun & Bradstreet Corp (NYSE:DNB) is the most popular stock in this table. On the other hand, Bank Of The Ozarks Inc (NASDAQ:OZRK) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks, Teradyne, Inc. (NYSE:TER) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.