Chipmos Technologies (NASDAQ:IMOS) Shares Gap Down on Disappointing Earnings

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.

Shares of Chipmos Technologies (NASDAQ:IMOS - Get Free Report) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. 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 changing hands.

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 return on equity of 4.69% and a net margin of 5.10%. The firm had revenue of $188.55 million during the quarter, compared to analyst estimates of $5.82 billion. During the same quarter last year, the company 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 paid a dividend of $0.6132 per share. This represents a dividend yield of 450.0%. The ex-dividend date of this dividend was Friday, June 27th. Chipmos Technologies's dividend payout ratio is presently 65.31%.

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

Analysts Set New Price Targets

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

Institutional Investors Weigh In On Chipmos Technologies

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

Chipmos Technologies Stock Performance

The company has a market cap of $606.39 million, a price-to-earnings ratio of 17.26 and a beta of 0.95. 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's fifty day simple moving average is $18.44 and its 200 day simple moving average is $18.16.

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.

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