Amkor Technology (NASDAQ:AMKR) Shares Gap Up - Here's Why

Key Points

• Amkor Technology's shares gapped up from a previous close of $25.68 to an opening price of $27.92, with the last traded price at $26.66.
• Wall Street analysts have raised their target prices for Amkor Technology, with ratings varying from "buy" to "neutral," indicating a consensus target price of $26.44.
• The company reported a Q2 earnings per share (EPS) of $0.22, exceeding expectations, and has also declared a quarterly dividend of $0.0827, representing an annual yield of 1.2%.

Shares of Amkor Technology, Inc. (NASDAQ:AMKR - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $25.68, but opened at $27.92. Amkor Technology shares last traded at $26.66, with a volume of 949,693 shares.

Analyst Upgrades and Downgrades

AMKR has been the topic of a number of recent analyst reports. B. Riley upped their price target on Amkor Technology from $18.00 to $24.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 29th. JPMorgan Chase & Co. upped their price target on Amkor Technology from $25.00 to $27.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. UBS Group upped their price target on Amkor Technology from $23.00 to $25.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Needham & Company LLC upped their price target on Amkor Technology from $22.00 to $28.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Finally, Wall Street Zen raised Amkor Technology from a "hold" rating to a "buy" rating in a research report on Friday, September 5th. Four analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Amkor Technology currently has an average rating of "Hold" and an average target price of $26.44.

Amkor Technology Stock Performance

The company has a market cap of $7.00 billion, a price-to-earnings ratio of 23.02 and a beta of 1.96. The company has a current ratio of 1.89, a quick ratio of 1.70 and a debt-to-equity ratio of 0.28. The stock's fifty day simple moving average is $23.71 and its 200 day simple moving average is $20.58.

Amkor Technology (NASDAQ:AMKR - Get Free Report) last released its quarterly earnings data on Monday, July 28th. The semiconductor company reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.06. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.42 billion. Amkor Technology had a net margin of 4.80% and a return on equity of 7.23%. Amkor Technology's quarterly revenue was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.27 EPS. Amkor Technology has set its Q3 2025 guidance at 0.340-0.480 EPS. As a group, analysts anticipate that Amkor Technology, Inc. will post 1.47 earnings per share for the current year.

Amkor Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Wednesday, September 3rd will be issued a dividend of $0.0827 per share. The ex-dividend date is Wednesday, September 3rd. This represents a $0.33 dividend on an annualized basis and a dividend yield of 1.2%. Amkor Technology's dividend payout ratio (DPR) is currently 26.83%.

Insider Activity

In other news, major shareholder John T. Kim purchased 441,589 shares of the business's stock in a transaction dated Friday, August 1st. The stock was acquired at an average price of $21.85 per share, for a total transaction of $9,648,719.65. Following the acquisition, the insider directly owned 3,789,479 shares of the company's stock, valued at approximately $82,800,116.15. This represents a 13.19% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Mark N. Rogers sold 15,000 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $23.58, for a total transaction of $353,700.00. Following the sale, the executive vice president owned 23,862 shares of the company's stock, valued at $562,665.96. This represents a 38.60% decrease in their position. The disclosure for this sale can be found here. Insiders own 26.90% of the company's stock.

Hedge Funds Weigh In On Amkor Technology

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of Amkor Technology by 2.3% during the 1st quarter. Vanguard Group Inc. now owns 16,025,236 shares of the semiconductor company's stock worth $289,416,000 after purchasing an additional 361,010 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of Amkor Technology by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 13,398,430 shares of the semiconductor company's stock worth $241,980,000 after purchasing an additional 365,975 shares during the period. American Century Companies Inc. boosted its position in shares of Amkor Technology by 30.0% during the 2nd quarter. American Century Companies Inc. now owns 3,818,331 shares of the semiconductor company's stock worth $80,147,000 after purchasing an additional 880,738 shares during the period. AQR Capital Management LLC boosted its position in shares of Amkor Technology by 38.3% during the 2nd quarter. AQR Capital Management LLC now owns 3,558,040 shares of the semiconductor company's stock worth $74,541,000 after purchasing an additional 985,727 shares during the period. Finally, SW Investment Management LLC boosted its position in shares of Amkor Technology by 89.3% during the 1st quarter. SW Investment Management LLC now owns 2,650,000 shares of the semiconductor company's stock worth $47,859,000 after purchasing an additional 1,250,000 shares during the period. Hedge funds and other institutional investors own 42.76% of the company's stock.

About Amkor Technology

Amkor Technology, Inc provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage.