Camtek (NASDAQ:CAMT) Shares Gap Up on Earnings Beat

Key Points

• Camtek exceeded quarterly expectations: The semiconductor equipment maker reported EPS of $0.78 versus the $0.76 consensus and revenue of $133.24 million versus $130.19 million. Revenue increased 8% year over year.
• Shares initially jumped on the earnings beat, opening at $169.94 compared with a prior close of $155.35, though they later traded near $153.87.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $174.67; several firms raised targets, including Jefferies to $200 and Oppenheimer to $195. Institutional investors own approximately 41.93% of the company.

Shares of Camtek Ltd. (NASDAQ:CAMT - Get Free Report) gapped up before the market opened on Monday following a stronger than expected earnings report. The stock had previously closed at $155.35, but opened at $169.94. Camtek shares last traded at $153.8660, with a volume of 200,101 shares traded.

The semiconductor company reported $0.78 EPS for the quarter, topping analysts' consensus estimates of $0.76 by $0.02. Camtek had a return on equity of 22.26% and a net margin of 9.63%.The business had revenue of $133.24 million for the quarter, compared to analysts' expectations of $130.19 million. During the same quarter in the previous year, the firm earned $0.79 earnings per share. The business's revenue was up 8.0% compared to the same quarter last year.

Analysts Set New Price Targets

A number of brokerages have weighed in on CAMT. Morgan Stanley boosted their price objective on Camtek from $163.00 to $167.00 and gave the company an "equal weight" rating in a research note on Monday, July 6th. Northland Securities set a $174.00 target price on shares of Camtek in a report on Wednesday, May 13th. Oppenheimer lifted their target price on shares of Camtek from $180.00 to $195.00 and gave the company an "outperform" rating in a report on Wednesday, May 13th. Weiss Ratings upgraded shares of Camtek from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, May 14th. Finally, Jefferies Financial Group raised their price objective on shares of Camtek from $185.00 to $200.00 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Seven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $174.67.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of CAMT. Wasatch Advisors LP grew its position in Camtek by 14.7% in the 3rd quarter. Wasatch Advisors LP now owns 4,020,683 shares of the semiconductor company's stock valued at $422,373,000 after buying an additional 513,956 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. raised its position in Camtek by 38.2% during the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 2,302,009 shares of the semiconductor company's stock worth $349,008,000 after buying an additional 636,773 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. lifted its stake in shares of Camtek by 12.0% in the 4th quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,318,396 shares of the semiconductor company's stock worth $140,205,000 after acquiring an additional 140,796 shares during the period. Vanguard Group Inc. lifted its stake in shares of Camtek by 0.7% in the 4th quarter. Vanguard Group Inc. now owns 1,086,242 shares of the semiconductor company's stock worth $116,615,000 after acquiring an additional 7,220 shares during the period. Finally, Y.D. More Investments Ltd boosted its holdings in shares of Camtek by 20.8% in the first quarter. Y.D. More Investments Ltd now owns 783,365 shares of the semiconductor company's stock valued at $114,901,000 after acquiring an additional 134,791 shares in the last quarter. Institutional investors and hedge funds own 41.93% of the company's stock.

Camtek Trading Down 1.6%

The company has a quick ratio of 7.46, a current ratio of 8.35 and a debt-to-equity ratio of 0.71. The company's fifty day moving average price is $159.00 and its two-hundred day moving average price is $163.07. The firm has a market cap of $7.14 billion, a PE ratio of 176.45, a P/E/G ratio of 3.73 and a beta of 1.58.

About Camtek

Camtek Ltd. NASDAQ: CAMT is a provider of automated inspection and metrology solutions for the semiconductor and printed circuit board (PCB) industries. The company develops, manufactures and markets a suite of inline and stand-alone systems that perform high‐resolution 2D and 3D measurements, defect review and process control. Its products are used by integrated device manufacturers, foundries, OSAT (outsourced semiconductor assembly and test) providers, and PCB fabricators to optimize yield, improve product quality and reduce production costs.

Camtek's core offerings include wafer inspection systems that detect and classify defects on patterned wafers, patterned wafer metrology tools for overlay and critical dimension measurements, and advanced packaging inspection platforms for 3D ICs and fan-out wafer-level packaging.

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