Form 4: Teradyne CEO Smith's Equity Vesting and Tax Withholding

Teradyne's President and CEO, Gregory Stephen Smith, reported the vesting of performance-based restricted stock units and subsequent tax-related share disposals.

Summary

• Gregory Stephen Smith, President and CEO of Teradyne, Inc. (TER), reported transactions related to his beneficial ownership.
• On January 27, 2026, 59,475 shares of Common Stock were acquired due to the full vesting of performance-based restricted stock units (PRSUs) granted on January 27, 2023.
• Following this acquisition, Smith's beneficial ownership included 152,948.5729 shares, which also accounts for 64.5779 shares acquired under the Employee Stock Purchase Plan on December 31, 2025.
• On January 27, 2026, 30,610 shares were disposed of at a price of $238.94 per share to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs) and PRSUs.
• On January 28, 2026, an additional 486 shares were disposed of at a price of $250.48 per share to satisfy tax withholding obligations related to the vesting of RSUs.
• After all reported transactions, Smith's direct beneficial ownership stands at 121,852.5729 shares of Common Stock.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing. The vesting of performance-based units is a positive indicator of past performance achievement, while the tax-related sales are routine and expected, not signaling any negative sentiment from the insider.

Positives

• The vesting of 59,475 performance-based restricted stock units indicates the achievement of performance targets set three years prior, reflecting positively on company performance and management's execution.
• The acquisition of 64.5779 shares through the Employee Stock Purchase Plan demonstrates continued personal investment by the CEO in the company's equity.

Negatives

• No inherently negative events are reported; the disposals were for tax withholding, a standard practice upon equity vesting.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance.

Industry Context

StockSavvy.ai notes that Form 4 filings are routine disclosures of insider transactions and do not typically provide broader industry context. These transactions reflect standard executive compensation practices within the technology and semiconductor test equipment industry, where equity awards are a common component of remuneration tied to performance and retention.

Stakeholder Impact

• Shareholders: The vesting of performance-based equity awards for the CEO can be seen as a positive signal regarding the company's past performance and alignment of management incentives with shareholder interests. The subsequent tax-related sales are a common occurrence and do not typically indicate a change in management's long-term view of the company.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to equity compensation vesting and tax withholding. It does not provide new information about the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. The transactions are expected and do not suggest a significant shift in the company's outlook or the insider's confidence beyond standard compensation practices. Therefore, a 'hold' recommendation is appropriate as this filing alone does not present a compelling reason to buy or sell.

Keywords

Teradyne, TER, Form 4, Insider Transaction, Stock Vesting, Restricted Stock Units, Performance-Based RSUs, CEO, Equity Compensation, Tax Withholding