Chipmos Technologies (NASDAQ:IMOS) Shares Gap Up - Time to 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 prior to trading 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.

Analyst Ratings Changes

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

Chipmos Technologies Trading Up 2.2%

The company has a debt-to-equity ratio of 0.39, a current ratio of 2.29 and a quick ratio of 1.97. The stock's 50-day moving average is $17.22 and its two-hundred day moving average is $17.64. The company has a market cap of $641.18 million, a P/E ratio of 199.39 and a beta of 1.03.

Chipmos Technologies (NASDAQ:IMOS - Get Free Report) last released its quarterly earnings results on Tuesday, August 12th. The semiconductor company reported ($0.51) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $5.82 billion. During the same quarter last year, the business earned $0.38 earnings per share. The business's quarterly revenue was down 1.3% on a year-over-year basis.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of IMOS. Wealthquest Corp purchased a new position in Chipmos Technologies during the first quarter valued at $52,000. Bank of America Corp DE raised its position in shares of 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 valued at $162,000 after purchasing an additional 679 shares during the period. Signaturefd LLC lifted 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 valued at $402,000 after buying an additional 4,716 shares in the last quarter. Ballentine Partners LLC boosted its holdings in Chipmos Technologies by 110.7% in the 2nd quarter. Ballentine Partners LLC now owns 31,793 shares of the semiconductor company's stock worth $576,000 after buying an additional 16,707 shares during the period. Finally, Rhumbline Advisers increased its stake in Chipmos Technologies by 51.4% in the 2nd quarter. Rhumbline Advisers now owns 37,595 shares of the semiconductor company's stock worth $681,000 after buying an additional 12,759 shares in the last quarter. Hedge funds and other institutional investors own 7.39% of the company's stock.

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.