Amkor Technology (NASDAQ:AMKR) Trading 11.7% Higher - Still a Buy?

Key Points

• Amkor Technology shares rose 11.7% in Tuesday trading, with volume far above normal as the stock climbed to as high as $76.30 before closing at $73.46.
• The company reported better-than-expected Q1 results, posting $0.33 EPS versus $0.23 expected and $1.68 billion in revenue versus $1.63 billion expected, with revenue up 27.5% year over year.
• Analysts remain mixed but constructive: the stock has a consensus Hold rating and average price target of $67.38, while the company also announced a quarterly dividend of $0.0835 per share.

Amkor Technology, Inc. (NASDAQ:AMKR - Get Free Report)'s share price was up 11.7% during mid-day trading on Tuesday . The stock traded as high as $76.30 and last traded at $73.46. Approximately 8,572,703 shares traded hands during trading, an increase of 87% from the average daily volume of 4,576,503 shares. The stock had previously closed at $65.75.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on AMKR shares. UBS Group reaffirmed a "neutral" rating and set a $80.00 price objective on shares of Amkor Technology in a research report on Tuesday. JPMorgan Chase & Co. boosted their price target on Amkor Technology from $32.00 to $65.00 and gave the company an "overweight" rating in a research note on Tuesday, February 10th. Needham & Company LLC boosted their price target on Amkor Technology from $65.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, April 28th. B. Riley Financial lifted their price objective on shares of Amkor Technology from $65.00 to $70.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 28th. Finally, The Goldman Sachs Group boosted their price objective on shares of Amkor Technology from $43.00 to $65.00 and gave the company a "neutral" rating in a report on Tuesday, April 28th. Four analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $67.38.

Amkor Technology Stock Up 11.7%

The firm has a 50 day moving average of $60.53 and a two-hundred day moving average of $49.66. The firm has a market capitalization of $18.21 billion, a price-to-earnings ratio of 41.98 and a beta of 2.29. The company has a quick ratio of 1.74, a current ratio of 2.01 and a debt-to-equity ratio of 0.28.

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

Amkor Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd will be given a $0.0835 dividend. The ex-dividend date is Wednesday, June 3rd. This represents a $0.33 annualized dividend and a yield of 0.5%. Amkor Technology's dividend payout ratio (DPR) is currently 18.86%.

Insider Transactions at Amkor Technology

In other Amkor Technology news, Director Guillaume Marie Jean Rutten sold 50,000 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $74.28, for a total value of $3,714,000.00. Following the completion of the transaction, the director directly owned 502,558 shares in the company, valued at approximately $37,330,008.24. This trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Roger Anthony Carolin sold 20,000 shares of the stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $76.24, for a total value of $1,524,800.00. Following the completion of the transaction, the director owned 94,409 shares of the company's stock, valued at $7,197,742.16. This represents a 17.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 113,000 shares of company stock valued at $8,258,950. 26.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Amkor Technology

Several large investors have recently bought and sold shares of the company. Bessemer Group Inc. raised its position in shares of Amkor Technology by 72.1% during the third quarter. Bessemer Group Inc. now owns 933 shares of the semiconductor company's stock worth $26,000 after acquiring an additional 391 shares during the last quarter. IFP Advisors Inc raised its position in shares of Amkor Technology by 91.2% during the third quarter. IFP Advisors Inc now owns 937 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 447 shares during the last quarter. Smartleaf Asset Management LLC raised its position in shares of Amkor Technology by 180.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 684 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 440 shares during the last quarter. Root Financial Partners LLC raised its position in shares of Amkor Technology by 38.8% during the fourth quarter. Root Financial Partners LLC now owns 937 shares of the semiconductor company's stock worth $37,000 after acquiring an additional 262 shares during the last quarter. Finally, Advisors Asset Management Inc. raised its position in shares of Amkor Technology by 61.8% during the first quarter. Advisors Asset Management Inc. now owns 2,236 shares of the semiconductor company's stock worth $40,000 after acquiring an additional 854 shares during the last quarter. 42.76% of the stock is currently owned by institutional investors.

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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