Amkor Technology (NASDAQ:AMKR) Trading Up 4.5% - Should You Buy?

Key Points

• Amkor Technology shares rose 4.5% on Wednesday, trading as high as $68.93 after closing at $65.54 the prior day, with volume below its recent average.
• Recent earnings topped expectations: Amkor reported $0.33 EPS versus the $0.23 consensus and revenue of $1.68 billion, up 27.5% year over year.
• Analyst sentiment remains mixed, with several firms raising price targets, but the overall consensus rating is still Hold with an average target price of $62.75.

Shares of Amkor Technology, Inc. (NASDAQ:AMKR - Get Free Report) were up 4.5% on Wednesday . The stock traded as high as $68.93 and last traded at $68.49. Approximately 3,032,518 shares changed hands during trading, a decline of 33% from the average daily volume of 4,515,852 shares. The stock had previously closed at $65.54.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on AMKR shares. Needham & Company LLC increased their price target on Amkor Technology from $65.00 to $90.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Morgan Stanley raised their target price on Amkor Technology from $45.00 to $69.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 28th. UBS Group set a $43.00 target price on Amkor Technology in a research note on Tuesday, February 10th. The Goldman Sachs Group raised their target price on Amkor Technology from $43.00 to $65.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 28th. Finally, Melius Research upgraded Amkor Technology from a "hold" rating to a "buy" rating and set a $60.00 target price for the company in a research note on Monday, April 6th. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $62.75.

Amkor Technology Trading Up 4.5%

The firm has a fifty day simple moving average of $58.66 and a two-hundred day simple moving average of $48.76. The stock has a market cap of $16.98 billion, a PE ratio of 39.14 and a beta of 2.29. The company has a current ratio of 2.01, a quick ratio of 1.74 and a debt-to-equity ratio of 0.28.

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

Amkor Technology Dividend Announcement

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

Insider Transactions at Amkor Technology

In other Amkor Technology news, Director Gil C. Tily sold 15,000 shares of the firm's stock in a transaction dated 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 sale, the director owned 108,806 shares of the company's stock, valued at $8,410,703.80. This trade represents a 12.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Douglas A. Alexander sold 5,000 shares of the firm's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $76.58, for a total value of $382,900.00. Following the completion of the sale, the director directly owned 29,109 shares in the company, valued at approximately $2,229,167.22. The trade was a 14.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 145,500 shares of company stock worth $9,844,325. 26.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Amkor Technology

A number of large investors have recently modified their holdings of the company. Bessemer Group Inc. raised its holdings in shares of Amkor Technology by 12.5% during the 1st quarter. Bessemer Group Inc. now owns 1,216 shares of the semiconductor company's stock valued at $55,000 after buying an additional 135 shares in the last quarter. O Shaughnessy Asset Management LLC raised its holdings in shares of Amkor Technology by 2.1% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 9,799 shares of the semiconductor company's stock valued at $387,000 after buying an additional 202 shares in the last quarter. Vanguard Personalized Indexing Management LLC raised its holdings in shares of Amkor Technology by 0.6% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 36,221 shares of the semiconductor company's stock valued at $1,430,000 after buying an additional 218 shares in the last quarter. Evolve Private Wealth LLC raised its holdings in shares of Amkor Technology by 3.0% during the 1st quarter. Evolve Private Wealth LLC now owns 7,615 shares of the semiconductor company's stock valued at $343,000 after buying an additional 222 shares in the last quarter. Finally, Strs Ohio raised its holdings in shares of Amkor Technology by 8.6% during the 1st quarter. Strs Ohio now owns 2,971 shares of the semiconductor company's stock valued at $134,000 after buying an additional 235 shares in the last quarter. 42.76% of the stock is owned by hedge funds and other institutional investors.

Amkor Technology Company Profile

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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