Cohu (NASDAQ:COHU) Shares Gap Up - Still a Buy?

Key Points

• Cohu shares gapped up before trading, opening at $56.49 versus the prior close of $52.12 and later trading around $57.93, a move of about 11.5%.
• Analyst sentiment remains constructive, with several firms reiterating or raising buy ratings; the consensus rating is Moderate Buy with an average target price of $54.14.
• The company recently posted mixed quarterly results, with EPS of $0.01 missing estimates but revenue of $125.12 million beating expectations and rising 29.3% year over year.

Shares of Cohu, Inc. (NASDAQ:COHU - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $52.12, but opened at $56.49. Cohu shares last traded at $57.9290, with a volume of 101,746 shares.

Analyst Ratings Changes

Several equities analysts have commented on COHU shares. Needham & Company LLC raised their target price on shares of Cohu from $33.00 to $54.00 and gave the company a "buy" rating in a research note on Friday, May 1st. TD Cowen upped their price target on shares of Cohu from $60.00 to $80.00 and gave the stock a "buy" rating in a research note on Tuesday, June 16th. Stifel Nicolaus increased their price objective on shares of Cohu from $32.00 to $34.00 and gave the company a "buy" rating in a report on Wednesday, March 18th. Zacks Research upgraded shares of Cohu from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Finally, Jefferies Financial Group set a $60.00 target price on Cohu and gave the stock a "buy" rating in a report on Friday, May 1st. Seven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $54.14.

Cohu Trading Up 11.5%

The company has a debt-to-equity ratio of 0.37, a quick ratio of 5.31 and a current ratio of 6.43. The firm has a market capitalization of $2.74 billion, a P/E ratio of -48.44 and a beta of 1.55. The firm has a 50 day moving average price of $55.34 and a two-hundred day moving average price of $39.36.

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

Insiders Place Their Bets

In other Cohu news, CFO Jeffrey D. Jones sold 13,000 shares of Cohu stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $46.84, for a total transaction of $608,920.00. Following the transaction, the chief financial officer owned 343,792 shares of the company's stock, valued at $16,103,217.28. The trade was a 3.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director James A. Donahue sold 10,257 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $46.77, for a total transaction of $479,719.89. Following the sale, the director owned 3,578 shares of the company's stock, valued at approximately $167,343.06. This represents a 74.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 90,668 shares of company stock worth $4,248,016 in the last quarter. Corporate insiders own 3.05% of the company's stock.

Institutional Investors Weigh In On Cohu

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in COHU. Hollencrest Capital Management purchased a new stake in shares of Cohu during the first quarter worth $31,000. Farther Finance Advisors LLC grew its position in Cohu by 45.0% in the fourth quarter. Farther Finance Advisors LLC now owns 1,456 shares of the semiconductor company's stock worth $34,000 after acquiring an additional 452 shares in the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Cohu during the 4th quarter worth $34,000. Los Angeles Capital Management LLC bought a new position in shares of Cohu during the 4th quarter valued at $37,000. Finally, Smartleaf Asset Management LLC raised its holdings in shares of Cohu by 202.7% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,113 shares of the semiconductor company's stock valued at $41,000 after purchasing an additional 1,415 shares in the last quarter. Hedge funds and other institutional investors own 94.67% of the company's stock.

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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