Amkor Technology (NASDAQ:AMKR) Raised to "Buy" at UBS Group

Key Points

• UBS Group upgraded Amkor Technology to “buy” from “neutral” and set a $90 price target, implying roughly 37.8% upside from the prior close.
• The company’s latest earnings beat expectations, with Q1 EPS of $0.33 versus $0.23 expected and revenue of $1.68 billion topping estimates; revenue also rose 27.5% year over year.
• Amkor announced a $1.5 billion strategic partnership with NVIDIA to expand advanced semiconductor packaging and test capacity in the U.S., a deal that investors see as a major validation of its AI-focused growth prospects.

Amkor Technology (NASDAQ:AMKR - Get Free Report) was upgraded by equities researchers at UBS Group from a "neutral" rating to a "buy" rating in a research note issued on Friday. The firm currently has a $90.00 target price on the semiconductor company's stock. UBS Group's target price would suggest a potential upside of 37.76% from the stock's previous close.

Several other brokerages also recently weighed in on AMKR. Weiss Ratings restated a "hold (c)" rating on shares of Amkor Technology in a research report on Friday, July 17th. The Goldman Sachs Group raised their price target on shares of Amkor Technology from $43.00 to $65.00 and gave the company a "neutral" rating in a research note on Tuesday, April 28th. Zacks Research raised shares of Amkor Technology from a "hold" rating to a "strong-buy" rating in a report on Monday. B. Riley Financial lowered their price objective on shares of Amkor Technology from $90.00 to $75.00 and set a "neutral" rating for the company in a research report on Wednesday. Finally, Melius Research upgraded shares of Amkor Technology from a "hold" rating to a "buy" rating and set a $60.00 target price on the stock in a research report on Monday, April 6th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $69.25.

Amkor Technology Stock Performance

Shares of NASDAQ:AMKR opened at $65.33 on Friday. The company's 50 day simple moving average is $73.47 and its 200 day simple moving average is $60.64. The stock has a market capitalization of $16.19 billion, a price-to-earnings ratio of 37.33 and a beta of 2.20. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.01 and a quick ratio of 1.74. Amkor Technology has a 1 year low of $20.86 and a 1 year high of $96.68.

Amkor Technology (NASDAQ:AMKR - Get Free Report) last released its earnings results on Monday, April 27th. The semiconductor company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.10. The firm had revenue of $1.68 billion during the quarter, compared to analysts' expectations of $1.63 billion. Amkor Technology had a return on equity of 9.88% and a net margin of 6.17%.The company's quarterly revenue was up 27.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.09 earnings per share. As a group, research analysts predict that Amkor Technology will post 2.08 EPS for the current fiscal year.

Insider Activity

In related news, Director Winston J. Churchill sold 7,000 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $76.45, for a total value of $535,150.00. Following the completion of the sale, the director directly owned 18,888 shares in the company, valued at $1,443,987.60. This represents a 27.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Gil C. Tily sold 15,000 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $77.30, for a total value of $1,159,500.00. Following the transaction, the director directly owned 108,806 shares of the company's stock, valued at approximately $8,410,703.80. This represents a 12.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 114,000 shares of company stock valued at $8,631,450. 26.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Amkor Technology

A number of hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in Amkor Technology by 100.6% in the first quarter. Royal Bank of Canada now owns 19,345 shares of the semiconductor company's stock valued at $349,000 after acquiring an additional 3,454,012 shares during the last quarter. Advisors Asset Management Inc. lifted its position in shares of Amkor Technology by 61.8% in the 1st quarter. Advisors Asset Management Inc. now owns 2,236 shares of the semiconductor company's stock worth $40,000 after purchasing an additional 854 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Amkor Technology by 913.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,509 shares of the semiconductor company's stock worth $136,000 after purchasing an additional 6,768 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Amkor Technology by 73.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 524,713 shares of the semiconductor company's stock valued at $9,476,000 after purchasing an additional 222,107 shares during the last quarter. Finally, Caxton Associates LLP bought a new stake in shares of Amkor Technology in the 1st quarter valued at $271,000. 42.76% of the stock is currently owned by institutional investors.

Amkor Technology News Roundup

Here are the key news stories impacting Amkor Technology this week:

• Positive Sentiment: Amkor announced a multi-year $1.5 billion strategic partnership with NVIDIA to expand advanced semiconductor packaging and test capacity in the U.S., including support for AI infrastructure and a prepayment from NVIDIA to help fund expansion. Article Title
• Positive Sentiment: News of the NVIDIA deal sparked a sharp move higher in AMKR shares after hours, as investors view the agreement as a meaningful validation of Amkor’s role in AI-related advanced packaging. Article Title
• Positive Sentiment: Analysts and commentators noted the deal could support Amkor’s long-term growth as it expands capacity in Arizona and builds out a larger AI and high-performance computing packaging business. Article Title
• Neutral Sentiment: B. Riley Financial lowered its price target on Amkor Technology to $75 from $90 and kept a neutral rating, suggesting some caution on valuation despite the upside from current levels. Article Title
• Negative Sentiment: Before the NVIDIA announcement, AMKR had already been under pressure, with one report noting the stock had declined more than the broader market in the prior session. Article Title

About Amkor Technology

Amkor Technology, Inc NASDAQ: AMKR is a leading provider of outsourced semiconductor packaging and test (OSAT) services, supporting integrated device manufacturers and semiconductor foundries worldwide. The company offers a broad range of advanced packaging solutions, including wafer bumping, flip chip, system-in-package and ball grid array technologies, designed to meet the performance, power and form-factor demands of applications across consumer electronics, automotive, communications and industrial markets.

In addition to packaging, Amkor delivers comprehensive test services such as wafer probing, final test, system-level test and digital, analog and mixed-signal testing, enabling customers to accelerate time-to-market and reduce total costs.

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