Chipmos Technologies (NASDAQ:IMOS) Trading Down 6.4% - Should You Sell?

Key Points

• Chipmos Technologies' shares dropped 6.4% to $16.40, with trading volume falling significantly below average.
• Wall Street analysts have downgraded Chipmos from a "hold" to a "sell" rating, reflecting concerns about the company's recent performance.
• In its latest quarterly earnings, the company reported a loss of ($0.51) EPS, missing expectations and indicating a 1.3% revenue decline year-over-year.

Chipmos Technologies (NASDAQ:IMOS - Get Free Report) shares traded down 6.4% during mid-day trading on Thursday . The stock traded as low as $16.65 and last traded at $16.40. 14,605 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 20,784 shares. The stock had previously closed at $17.52.

Wall Street Analyst Weigh In

Separately, Wall Street Zen lowered Chipmos Technologies from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th.

Chipmos Technologies Trading Down 0.7%

The company has a quick ratio of 2.40, a current ratio of 2.71 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $571.07 million, a PE ratio of 176.94 and a beta of 0.95. The firm has a 50 day moving average price of $18.28 and a 200 day moving average price of $18.06.

Chipmos Technologies (NASDAQ:IMOS - Get Free Report) last released its earnings results on Tuesday, August 12th. The semiconductor company reported ($0.51) earnings per share for the quarter, missing analysts' consensus estimates of $0.29 by ($0.80). Chipmos Technologies had a net margin of 0.50% and a return on equity of 0.47%. The company had revenue of $188.55 million during the quarter, compared to the consensus estimate of $5.82 billion. During the same period last year, the firm posted $0.38 EPS. The company's revenue was down 1.3% on a year-over-year basis.

Chipmos Technologies Cuts Dividend

The company also recently announced an annual dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, June 27th were given a $0.6132 dividend. The ex-dividend date of this dividend was Friday, June 27th. This represents a dividend yield of 450.0%. Chipmos Technologies's dividend payout ratio is currently 711.11%.

Chipmos Technologies announced that its board has approved a share buyback program on Tuesday, May 13th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the semiconductor company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Chipmos Technologies

A number of hedge funds have recently made changes to their positions in IMOS. Bank of America Corp DE grew its position in shares of Chipmos Technologies by 71.8% during the 2nd quarter. Bank of America Corp DE now owns 11,852 shares of the semiconductor company's stock valued at $215,000 after acquiring an additional 4,952 shares during the period. Rhumbline Advisers grew its position in shares of Chipmos Technologies by 51.4% during the 2nd quarter. Rhumbline Advisers now owns 37,595 shares of the semiconductor company's stock valued at $681,000 after acquiring an additional 12,759 shares during the period. Creative Planning grew its position in shares of Chipmos Technologies by 50.3% during the 2nd quarter. Creative Planning now owns 45,283 shares of the semiconductor company's stock valued at $820,000 after acquiring an additional 15,150 shares during the period. Acadian Asset Management LLC grew its position in shares of Chipmos Technologies by 5.9% during the 2nd quarter. Acadian Asset Management LLC now owns 265,392 shares of the semiconductor company's stock valued at $4,795,000 after acquiring an additional 14,697 shares during the period. Finally, Envestnet Asset Management Inc. grew its position in shares of Chipmos Technologies by 2.2% during the 2nd quarter. Envestnet Asset Management Inc. now owns 57,091 shares of the semiconductor company's stock valued at $1,034,000 after acquiring an additional 1,205 shares during the period. 7.39% of the stock is currently owned by hedge funds and other institutional investors.

Chipmos Technologies Company Profile

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.