Cohu (NASDAQ:COHU) Shares Gap Up on Strong Earnings

Key Points

• Cohu, Inc. shares saw a significant increase, opening at $19.18 after beating quarterly earnings estimates with an EPS of $0.02, surpassing expectations of ($0.02).
• For the quarter, Cohu reported $107.68 million in revenue, which is up 2.9% year-over-year and higher than the consensus estimate of $106 million.
• After recent evaluations, brokerages have adjusted their target prices for Cohu, with TD Cowen lowering theirs to $22.00 while maintaining a "buy" rating, and Stifel Nicolaus reducing theirs to $28.00.

Cohu, Inc. (NASDAQ:COHU - Get Free Report) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $17.86, but opened at $19.18. Cohu shares last traded at $18.30, with a volume of 90,814 shares traded.

The semiconductor company reported $0.02 EPS for the quarter, topping analysts' consensus estimates of ($0.02) by $0.04. Cohu had a negative return on equity of 3.74% and a negative net margin of 22.11%. The company had revenue of $107.68 million during the quarter, compared to analyst estimates of $106.00 million. During the same quarter last year, the firm posted ($0.01) earnings per share. The firm's revenue was up 2.9% on a year-over-year basis.

Analysts Set New Price Targets

Several equities analysts have commented on COHU shares. Stifel Nicolaus lowered their price objective on Cohu from $35.00 to $28.00 and set a "buy" rating for the company in a research report on Friday, May 2nd. TD Cowen lowered their price objective on shares of Cohu from $27.00 to $22.00 and set a "buy" rating on the stock in a research report on Friday, May 2nd. Needham & Company LLC restated a "hold" rating on shares of Cohu in a research note on Friday, May 2nd. Finally, Wall Street Zen downgraded Cohu from a "hold" rating to a "sell" rating in a research note on Tuesday, May 13th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $27.17.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Victory Capital Management Inc. lifted its holdings in Cohu by 18.6% in the 1st quarter. Victory Capital Management Inc. now owns 3,731,981 shares of the semiconductor company's stock worth $54,897,000 after purchasing an additional 585,234 shares in the last quarter. Royce & Associates LP raised its holdings in shares of Cohu by 16.4% during the 1st quarter. Royce & Associates LP now owns 1,679,478 shares of the semiconductor company's stock worth $24,705,000 after acquiring an additional 237,084 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Cohu by 15.5% during the 4th quarter. Ameriprise Financial Inc. now owns 1,148,977 shares of the semiconductor company's stock worth $30,678,000 after acquiring an additional 154,550 shares in the last quarter. Frontier Capital Management Co. LLC raised its holdings in shares of Cohu by 52.2% during the 4th quarter. Frontier Capital Management Co. LLC now owns 1,139,325 shares of the semiconductor company's stock worth $30,420,000 after acquiring an additional 390,558 shares in the last quarter. Finally, Paradigm Capital Management Inc. NY raised its holdings in shares of Cohu by 101.7% during the 1st quarter. Paradigm Capital Management Inc. NY now owns 967,549 shares of the semiconductor company's stock worth $14,233,000 after acquiring an additional 487,800 shares in the last quarter. 94.67% of the stock is owned by hedge funds and other institutional investors.

Cohu Stock Down 2.0%

The firm has a market capitalization of $859.55 million, a PE ratio of -9.88 and a beta of 1.25. The company has a fifty day moving average price of $19.08 and a 200-day moving average price of $18.39. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.51 and a current ratio of 4.88.

Cohu Company Profile

Cohu, Inc, through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors.