Cohu (NASDAQ:COHU) Hits New 52-Week High - Still a Buy?

Key Points

• Cohu shares hit a new 52-week high, reaching as much as $70.92 in intraday trading, though the stock closed near $70.07. The move came alongside elevated volume and continued momentum in the shares.
• Analysts remain generally constructive on the stock, with several firms recently raising price targets and issuing buy or outperform ratings. MarketBeat’s compiled view shows an average rating of Moderate Buy and an average target price of $52.33.
• Cohu’s latest earnings showed mixed results: revenue beat estimates and rose 29.3% year over year, but EPS missed expectations. The company also saw recent insider selling, including sales by a director and the CEO.

Cohu, Inc. (NASDAQ:COHU - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $70.92 and last traded at $70.07, with a volume of 897286 shares. The stock had previously closed at $69.40.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Stifel Nicolaus upped their price target on shares of Cohu from $32.00 to $34.00 and gave the company a "buy" rating in a report on Wednesday, March 18th. Needham & Company LLC lifted their price objective on shares of Cohu from $33.00 to $54.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Evercore reissued an "outperform" rating and set a $53.00 target price on shares of Cohu in a research note on Tuesday, April 28th. Weiss Ratings restated a "sell (d-)" rating on shares of Cohu in a report on Monday, April 20th. Finally, Jefferies Financial Group set a $60.00 price target on shares of Cohu and gave the stock a "buy" rating in a research report on Friday, May 1st. Six equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $52.33.

Cohu Stock Up 1.0%

The company has a quick ratio of 5.31, a current ratio of 6.43 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $3.31 billion, a PE ratio of -58.88 and a beta of 1.62. The business's 50 day simple moving average is $50.43 and its 200 day simple moving average is $36.13.

Cohu (NASDAQ:COHU - Get Free Report) last announced its earnings results on Thursday, April 30th. The semiconductor company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.03 by ($0.02). Cohu had a negative return on equity of 3.50% and a negative net margin of 11.54%.The firm had revenue of $125.12 million during the quarter, compared to analyst estimates of $122.14 million. During the same quarter in the previous year, the business earned ($0.02) earnings per share. The business's quarterly revenue was up 29.3% compared to the same quarter last year. As a group, analysts forecast that Cohu, Inc. will post 0.17 EPS for the current year.

Insider Activity

In other news, Director William Bendush sold 7,500 shares of the firm's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $49.14, for a total value of $368,550.00. Following the completion of the sale, the director owned 24,780 shares of the company's stock, valued at $1,217,689.20. This trade represents a 23.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Luis A. Muller sold 45,154 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $46.62, for a total value of $2,105,079.48. Following the transaction, the chief executive officer directly owned 927,619 shares in the company, valued at $43,245,597.78. The trade was a 4.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 90,668 shares of company stock worth $4,248,016. 3.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cohu

A number of institutional investors have recently bought and sold shares of COHU. Stanley Laman Group Ltd. raised its position in Cohu by 27.8% during the fourth quarter. Stanley Laman Group Ltd. now owns 195,536 shares of the semiconductor company's stock valued at $4,550,000 after acquiring an additional 42,593 shares in the last quarter. Dean Capital Management raised its holdings in shares of Cohu by 41.5% during the 3rd quarter. Dean Capital Management now owns 127,324 shares of the semiconductor company's stock valued at $2,588,000 after purchasing an additional 37,345 shares in the last quarter. First Eagle Investment Management LLC lifted its stake in shares of Cohu by 20.9% in the 3rd quarter. First Eagle Investment Management LLC now owns 248,146 shares of the semiconductor company's stock valued at $5,045,000 after purchasing an additional 42,819 shares during the last quarter. Divisadero Street Capital Management LP bought a new stake in Cohu in the third quarter worth $3,036,000. Finally, Vanguard Group Inc. raised its holdings in Cohu by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 4,361,164 shares of the semiconductor company's stock valued at $101,484,000 after buying an additional 57,618 shares in the last quarter. 94.67% of the stock is currently owned by institutional investors and hedge funds.

About Cohu

Cohu, Inc is a global provider of semiconductor test and inspection solutions, offering a broad portfolio of products designed to support chip manufacturers, outsourced semiconductor assembly and test (OSAT) providers, and electronics original equipment manufacturers (OEMs). The company's product lineup includes automatic test handlers, wafer probers, test sockets, thermal subassembly systems and burn-in boards, all engineered to optimize throughput, accuracy and reliability in semiconductor production and final test.

Founded in 1947 and headquartered in Poway, California, Cohu has grown through both organic development and targeted acquisitions to become a recognized leader in test handling and interconnect technologies.

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