Chipmos Technologies (NASDAQ:IMOS) Downgraded by Wall Street Zen to Sell

Key Points

• Chipmos Technologies has been downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen.
• The company reported a net margin of 5.10% and earnings per share (EPS) of $0.15, missing the consensus estimate of $0.19.
• Chipmos Technologies has authorized a stock repurchase plan, indicating management's belief that the stock is undervalued.

Wall Street Zen cut shares of Chipmos Technologies (NASDAQ:IMOS - Free Report) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Chipmos Technologies Trading Down 0.6%

IMOS stock traded down $0.11 during midday trading on Friday, hitting $17.38. 9,155 shares of the company's stock were exchanged, compared to its average volume of 18,420. The business has a 50-day simple moving average of $18.74 and a two-hundred day simple moving average of $18.27. The company has a current ratio of 2.71, a quick ratio of 2.40 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $623.25 million, a PE ratio of 17.73 and a beta of 0.94. Chipmos Technologies has a 1-year low of $12.78 and a 1-year high of $24.41.

Chipmos Technologies (NASDAQ:IMOS - Get Free Report) last posted its earnings results on Tuesday, May 13th. The semiconductor company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.04). The business had revenue of $166.70 million for the quarter, compared to analyst estimates of $5.26 billion. Chipmos Technologies had a return on equity of 4.69% and a net margin of 5.10%. Chipmos Technologies's revenue was up 2.1% compared to the same quarter last year. During the same period last year, the business earned $0.38 EPS.

Chipmos Technologies Cuts Dividend

The firm also recently announced an annual dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, June 27th were given a dividend of $0.6132 per share. The ex-dividend date of this dividend was Friday, June 27th. This represents a dividend yield of 4.5%. Chipmos Technologies's dividend payout ratio (DPR) is presently 65.31%.

Chipmos Technologies declared that its Board of Directors has initiated a share repurchase program on Tuesday, May 13th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the semiconductor company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Institutional Trading of Chipmos Technologies

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wealthquest Corp acquired a new position in Chipmos Technologies during the 1st quarter worth approximately $52,000. JPMorgan Chase & Co. increased its position in Chipmos Technologies by 761.4% during the 4th quarter. JPMorgan Chase & Co. now owns 4,083 shares of the semiconductor company's stock worth $77,000 after purchasing an additional 3,609 shares during the period. Tower Research Capital LLC TRC increased its position in Chipmos Technologies by 1,000.0% during the 4th quarter. Tower Research Capital LLC TRC now owns 5,500 shares of the semiconductor company's stock worth $104,000 after purchasing an additional 5,000 shares during the period. Bank of America Corp DE increased its position in Chipmos Technologies by 8.6% during the 4th quarter. Bank of America Corp DE now owns 8,613 shares of the semiconductor company's stock worth $162,000 after purchasing an additional 679 shares during the period. Finally, Signaturefd LLC boosted its stake in shares of Chipmos Technologies by 27.0% during the 2nd quarter. Signaturefd LLC now owns 22,180 shares of the semiconductor company's stock worth $402,000 after acquiring an additional 4,716 shares in the last quarter. 7.39% of the stock is owned by hedge funds and other institutional investors.

About Chipmos Technologies

ChipMOS TECHNOLOGIES INC. engages in the research, development, manufacture, and sale of high-integration and high-precision integrated circuits, and related assembly and testing services in the People's Republic of China, Taiwan, Japan, Singapore, and internationally. It operates through Testing; Assembly; Testing and Assembly for LCD, OLED and Other Display Panel Driver Semiconductors; Bumping; and Others segments.