Chipmos Technologies (NASDAQ:IMOS) Shares Gap Down After Earnings Miss

Key Points

• Chipmos Technologies saw its shares gap down to $16.94, following a disappointing quarterly earnings report that revealed a loss of ($0.51) per share, significantly missing expectations of $0.29.
• The company has announced a stock repurchase program, indicating that its leadership believes its stock may be undervalued, amidst a current market cap of $606.39 million.
• Analysts have reacted by downgrading Chipmos from a "hold" to a "sell" rating, reflecting a cautious outlook following its revenue decline of 1.3% year-over-year.

Chipmos Technologies (NASDAQ:IMOS - Get Free Report) shares gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $17.52, but opened at $16.94. Chipmos Technologies shares last traded at $16.91, with a volume of 2,416 shares trading hands.

The semiconductor company reported ($0.51) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.80). Chipmos Technologies had a return on equity of 0.47% and a net margin of 0.50%. The firm had revenue of $188.55 million during the quarter, compared to the consensus estimate of $5.82 billion. During the same quarter in the previous year, the company posted $0.38 EPS. The firm'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 issued a $0.6132 dividend. The ex-dividend date 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 of Directors has initiated a share buyback program on Tuesday, May 13th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the semiconductor company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen cut shares of Chipmos Technologies from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th.

Hedge Funds Weigh In On Chipmos Technologies

A number of large investors have recently made changes to their positions in the stock. Wealthquest Corp bought a new stake in Chipmos Technologies during the first quarter valued at $52,000. JPMorgan Chase & Co. grew its holdings in shares of Chipmos Technologies by 761.4% during the fourth 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 in the last quarter. Tower Research Capital LLC TRC increased its position in shares of Chipmos Technologies by 1,000.0% in the fourth 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 last quarter. Bank of America Corp DE raised its stake in Chipmos Technologies by 8.6% in the fourth quarter. Bank of America Corp DE now owns 8,613 shares of the semiconductor company's stock valued at $162,000 after purchasing an additional 679 shares in the last quarter. Finally, Signaturefd LLC lifted its position in Chipmos Technologies by 27.0% during the second quarter. Signaturefd LLC now owns 22,180 shares of the semiconductor company's stock valued at $402,000 after purchasing an additional 4,716 shares during the last quarter. 7.39% of the stock is owned by institutional investors.

Chipmos Technologies Trading Down 0.6%

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 firm has a market capitalization of $571.61 million, a P/E ratio of 177.11 and a beta of 0.95. The firm's 50-day simple moving average is $18.28 and its 200-day simple moving average is $18.06.

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.