Amkor Technology (NASDAQ:AMKR) Stock Price Target Cut by B. Riley Financial

Key Points

• B. Riley Financial cut Amkor Technology’s price target from $46 to $41 and maintained a “neutral” rating, implying about 5.8% upside from the stock’s $38.75 price. Analysts overall rate the stock “Moderate Buy,” with an average target of $60.
• Amkor’s latest quarter fell slightly short of expectations, reporting $0.76 in EPS versus $0.78 expected and $1.99 billion in revenue versus $2.04 billion forecast. Profitability improved year over year, supported by stronger computing and automotive demand, but communications weakness and below-estimate guidance remain concerns.
• Shares rose 5.3% on the day, while management pointed to AI-related computing growth, advanced packaging and a planned $12 billion Arizona expansion as longer-term growth drivers. Recent insider selling and mixed analyst target revisions signal continued caution despite institutional buying.

Amkor Technology (NASDAQ:AMKR - Get Free Report) had its target price reduced by equities researchers at B. Riley Financial from $46.00 to $41.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has a "neutral" rating on the semiconductor company's stock. B. Riley Financial's target price would suggest a potential upside of 5.81% from the company's current price.

A number of other research firms also recently commented on AMKR. Weiss Ratings raised shares of Amkor Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. UBS Group raised shares of Amkor Technology from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $80.00 to $90.00 in a research note on Friday, July 24th. Bank of America assumed coverage on Amkor Technology in a research note on Thursday, August 27th. They set a "buy" rating and a $70.00 target price for the company. Needham & Company LLC lowered their price target on Amkor Technology from $90.00 to $55.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, The Goldman Sachs Group set a $56.00 price objective on Amkor Technology in a research report on Tuesday. Six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $60.00.

Amkor Technology Stock Up 5.3%

Shares of AMKR stock traded up $1.94 on Tuesday, hitting $38.75. The stock had a trading volume of 2,141,674 shares, compared to its average volume of 4,859,713. The company has a market cap of $9.63 billion, a PE ratio of 17.31, a P/E/G ratio of 0.48 and a beta of 2.21. The company has a quick ratio of 1.91, a current ratio of 2.17 and a debt-to-equity ratio of 0.50. Amkor Technology has a one year low of $29.50 and a one year high of $96.68. The business has a 50 day moving average price of $49.07 and a 200 day moving average price of $57.29.

Amkor Technology (NASDAQ:AMKR - Get Free Report) last announced its earnings results on Monday, October 26th. The semiconductor company reported $0.76 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.02). Amkor Technology had a return on equity of 12.27% and a net margin of 7.45%. The firm had revenue of $1.99 billion during the quarter, compared to the consensus estimate of $2.04 billion. The business's revenue for the quarter was up .2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.51 earnings per share. Research analysts anticipate that Amkor Technology will post 2.60 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Giel Rutten sold 25,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $55.35, for a total transaction of $1,383,750.00. Following the completion of the transaction, the director directly owned 486,732 shares of the company's stock, valued at $26,940,616.20. This trade represents a 4.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Megan Faust sold 1,000 shares of the stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $46.92, for a total transaction of $46,920.00. Following the sale, the chief financial officer directly owned 133,105 shares of the company's stock, valued at $6,245,286.60. This represents a 0.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 46,221 shares of company stock valued at $2,538,507. Insiders own 26.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in Amkor Technology in the second quarter valued at $1,060,005,000. Jefferies Financial Group Inc. bought a new stake in Amkor Technology during the second quarter worth $13,491,000. Public Employees Retirement System of Ohio purchased a new position in Amkor Technology during the second quarter worth about $3,575,000. Corient Private Wealth LP grew its stake in Amkor Technology by 142.7% in the 2nd quarter. Corient Private Wealth LP now owns 158,037 shares of the semiconductor company's stock valued at $13,628,000 after purchasing an additional 92,929 shares during the period. Finally, The Manufacturers Life Insurance Company bought a new stake in Amkor Technology in the second quarter worth about $8,524,000. 42.76% of the stock is owned by institutional investors and hedge funds.

More Amkor Technology News

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

• Positive Sentiment: Improved profitability and computing demand: Third-quarter revenue was $1.99 billion and EPS was $0.76, below estimates of approximately $2.04 billion and $0.78. However, gross margin expanded to 18.3%, operating margin reached 11.3% and net income increased to $191 million from $128 million a year earlier. Computing and automotive revenue reached records, helping offset weaker communications demand. Amkor Technology Stock Is Gaining Tuesday: What's Going On?
• Positive Sentiment: AI expansion supports the growth outlook: Management highlighted AI-driven computing growth, advanced-packaging momentum and a planned $12 billion Arizona expansion. Amkor’s reported relationships with NVIDIA and TSMC, along with a separate $3 billion AI packaging opportunity, are reinforcing the longer-term investment case. Amkor Q3 Earnings Call Highlights AI Growth and Capacity Expansion
• Positive Sentiment: Analysts still see substantial potential: Needham maintained a “buy” rating with a $55 target, while Morgan Stanley retained an “equal weight” rating and a $63 target. Although both targets were reduced, they remain well above the recent share price. Needham analyst recommendation
• Neutral Sentiment: Mixed near-term outlook: Advanced packaging and computing demand are improving, but smartphone and broader communications weakness could pressure near-term results and guidance.
• Negative Sentiment: Results missed expectations: The quarterly EPS and revenue shortfalls, together with reports that guidance fell below estimates, remain significant risks for investors. Amkor Technology slips as Q3 results and guidance miss estimates
• Negative Sentiment: Bearish positioning signals caution: Reported insider activity showed selling without purchases during the past six months, while put-option volume was substantially above average ahead of earnings.

Amkor Technology Company Profile

Amkor Technology, Inc is a provider of outsourced semiconductor packaging and test services. The company helps semiconductor manufacturers and electronics companies assemble, package and test integrated circuits before they are incorporated into finished electronic products.

Amkor's services include wafer bumping, wafer-level packaging, flip-chip packaging, system-in-package solutions, fan-out packaging, leadframe and laminate-based packaging, and semiconductor testing. Its products and services support applications including mobile and consumer electronics, communications, automotive, computing, industrial equipment, and memory devices.

Founded in 1968, Amkor has grown into a global semiconductor supply-chain partner with manufacturing and testing operations across regions including Asia, Europe and the United States.

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