Chipmos Technologies (NASDAQ:IMOS) Shares Gap Up - Still a Buy?

Key Points

• Chipmos Technologies' shares gapped up from $15.19 to $16.48 before trading at $16.66, indicating market interest despite a recent downgrade from a "hold" to a "sell" rating by Wall Street Zen.
• The company reported significant earnings miss with an EPS of ($0.51), falling short of the consensus estimate of $0.29, alongside a revenue decline of 1.3% year-over-year.
• Chipmos Technologies has initiated a share buyback program, signaling that its board believes the stock may be undervalued despite 7.39% institutional ownership.

Shares of Chipmos Technologies (NASDAQ:IMOS - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $15.19, but opened at $16.48. Chipmos Technologies shares last traded at $16.66, with a volume of 21,635 shares changing hands.

Analyst Ratings Changes

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

Chipmos Technologies Stock Performance

The company has a debt-to-equity ratio of 0.42, a current ratio of 2.71 and a quick ratio of 2.40. The firm has a fifty day simple moving average of $17.34 and a 200 day simple moving average of $17.73. The company has a market capitalization of $595.99 million, a price-to-earnings ratio of 185.06 and a beta of 1.02.

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

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 outstanding shares. This repurchase authorization permits the semiconductor company to purchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its stock is undervalued.

Institutional Trading of Chipmos Technologies

A number of institutional investors have recently made changes to their positions in the company. Acadian Asset Management LLC boosted its stake in shares of Chipmos Technologies by 5.9% in the second quarter. Acadian Asset Management LLC now owns 265,392 shares of the semiconductor company's stock worth $4,795,000 after acquiring an additional 14,697 shares during the last quarter. Vanguard Personalized Indexing Management LLC boosted its stake in shares of Chipmos Technologies by 66.4% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 69,191 shares of the semiconductor company's stock worth $1,253,000 after acquiring an additional 27,617 shares during the last quarter. Envestnet Asset Management Inc. boosted its stake in shares of Chipmos Technologies by 2.2% in the second quarter. Envestnet Asset Management Inc. now owns 57,091 shares of the semiconductor company's stock worth $1,034,000 after acquiring an additional 1,205 shares during the last quarter. Creative Planning boosted its stake in shares of Chipmos Technologies by 50.3% in the second quarter. Creative Planning now owns 45,283 shares of the semiconductor company's stock worth $820,000 after acquiring an additional 15,150 shares during the last quarter. Finally, Rhumbline Advisers boosted its stake in shares of Chipmos Technologies by 51.4% in the second quarter. Rhumbline Advisers now owns 37,595 shares of the semiconductor company's stock worth $681,000 after acquiring an additional 12,759 shares during the last quarter. 7.39% of the stock is owned by institutional investors and hedge funds.

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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