Form 4: Teradyne CEO Exercises Options, Boosts Stake

Teradyne's President and CEO, Gregory Stephen Smith, exercised stock options and increased his direct beneficial ownership of common stock.

Summary

• Gregory Stephen Smith, President and CEO of Teradyne, Inc., exercised 2,072 stock options at an exercise price of $36.75 per share on November 5, 2025.
• Following the option exercise, 1,224 shares of common stock were withheld by the issuer at a price of $177.05 per share to cover the exercise price and tax withholding obligations.
• After these transactions, Smith's direct beneficial ownership of Teradyne common stock increased by 848 shares, totaling 95,624.995 shares.
• The exercised options had vested 25% annually over four years, starting January 25, 2020, and were set to expire on January 25, 2026.
• The transaction was made pursuant to a Rule 10b5-1 pre-arranged trading plan.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive as the CEO increased his direct ownership, albeit after a significant portion was withheld for taxes. This indicates a continued, though not aggressive, alignment of interests with shareholders through a routine compensation event.

Positives

• The CEO exercised stock options, indicating confidence in the company's future performance at the time the plan was established.
• The CEO increased his direct beneficial ownership of common stock by 848 shares, aligning his interests further with shareholders.

Negatives

• A significant portion of the acquired shares (1,224 out of 2,072) were immediately disposed of to cover taxes and the exercise price, which is a common practice but reduces the net increase in direct holdings.

Future Outlook

The filing does not contain any forward-looking statements or guidance.

Industry Context

This filing is a routine insider transaction and does not provide specific industry context or relate to broader industry trends. It reflects an individual executive's compensation and investment activity within the company.

Comparison to Industry Standards

• The exercise of stock options and subsequent withholding of shares for tax obligations is a standard practice for executive compensation across various industries, including the semiconductor test equipment and robotics sectors where Teradyne operates.
• The use of a Rule 10b5-1 plan for these transactions is also a common corporate governance practice, providing an affirmative defense against insider trading allegations by pre-scheduling trades.

Stakeholder Impact

• Shareholders: The CEO's increased direct ownership by 848 shares may be viewed positively as it aligns management's interests with shareholder value, though the overall impact on the company's large share base is minimal.
• Employees: No direct impact on employees is indicated by this filing.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction (option exercise and tax withholding) by the CEO under a pre-arranged plan. While the CEO's net beneficial ownership increased slightly, this event alone does not provide new fundamental information to warrant a change in investment recommendation. It's a standard compensation event rather than a strong signal of future performance or a significant shift in insider sentiment.

Keywords

Teradyne, TER, Insider Trading, Stock Option Exercise, CEO, Beneficial Ownership, Form 4, Rule 10b5-1