Amkor Technology (NASDAQ:AMKR) Trading Down 7.3% - Time to Sell?

Key Points

• Amkor Technology shares fell 7.3% on Friday, trading as low as $78.83 on lighter-than-usual volume before ending around $79.39.
• Analysts remain cautious overall: recent price targets were mostly raised, but the stock still carries an average “Hold” rating and an average price target of about $69.88.
• The company recently beat quarterly expectations with EPS of $0.33 on revenue of $1.68 billion, while also paying a small quarterly dividend and seeing some insider selling over the past 90 days.

Amkor Technology, Inc. (NASDAQ:AMKR - Get Free Report)'s stock price was down 7.3% during trading on Friday . The stock traded as low as $78.83 and last traded at $79.3920. Approximately 978,446 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 4,854,543 shares. The stock had previously closed at $85.62.

Wall Street Analysts Forecast Growth

AMKR has been the topic of several research analyst reports. B. Riley Financial boosted their price target on shares of Amkor Technology from $70.00 to $90.00 and gave the company a "neutral" rating in a research report on Thursday. UBS Group restated a "neutral" rating and issued a $80.00 price objective on shares of Amkor Technology in a report on Tuesday, May 26th. The Goldman Sachs Group lifted their price objective on Amkor Technology from $43.00 to $65.00 and gave the company a "neutral" rating in a research report on Tuesday, April 28th. Melius Research raised Amkor Technology from a "hold" rating to a "buy" rating and set a $60.00 target price for the company in a research report on Monday, April 6th. Finally, Morgan Stanley raised their target price on Amkor Technology from $45.00 to $69.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 28th. Four equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $69.88.

Amkor Technology Stock Down 7.4%

The company has a market capitalization of $19.66 billion, a PE ratio of 45.40 and a beta of 2.25. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.74 and a current ratio of 2.01. The company's 50-day moving average is $74.21 and its 200 day moving average is $56.65.

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

Amkor Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Wednesday, June 3rd were paid a $0.0835 dividend. The ex-dividend date was Wednesday, June 3rd. This represents a $0.33 annualized dividend and a dividend yield of 0.4%. Amkor Technology's payout ratio is currently 18.86%.

Insider Activity

In other Amkor Technology news, EVP Mark N. Rogers sold 5,000 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $71.63, for a total transaction of $358,150.00. Following the transaction, the executive vice president owned 38,904 shares in the company, valued at approximately $2,786,693.52. This represents a 11.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Roger Anthony Carolin sold 20,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $76.24, for a total transaction of $1,524,800.00. Following the transaction, the director owned 94,409 shares in the company, valued at approximately $7,197,742.16. This trade represents a 17.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 119,000 shares of company stock valued at $8,928,600. Corporate insiders own 26.40% of the company's stock.

Hedge Funds Weigh In On Amkor Technology

Several hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada grew its holdings in shares of Amkor Technology by 100.6% in the first quarter. Royal Bank of Canada now owns 19,345 shares of the semiconductor company's stock worth $349,000 after acquiring an additional 3,454,012 shares during the period. Fisher Asset Management LLC grew its stake in shares of Amkor Technology by 204.5% during the 4th quarter. Fisher Asset Management LLC now owns 2,095,027 shares of the semiconductor company's stock valued at $82,712,000 after purchasing an additional 1,407,109 shares during the period. Norges Bank purchased a new stake in shares of Amkor Technology during the 4th quarter valued at about $53,702,000. Arrowstreet Capital Limited Partnership increased its position in shares of Amkor Technology by 305.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,574,607 shares of the semiconductor company's stock valued at $44,719,000 after purchasing an additional 1,186,313 shares during the last quarter. Finally, AQR Capital Management LLC lifted its stake in shares of Amkor Technology by 38.3% in 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. 42.76% of the stock is 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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