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

Key Points

• Cohu shares jumped 6.2%, opening at $61.90 versus a prior close of $59.30, as the semiconductor test-equipment maker continued trading above its 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with an average rating of “Buy” and a consensus price target of $68.75; recent targets range from $53 to $80.
• Cohu exceeded quarterly expectations, reporting $0.26 in adjusted earnings per share versus $0.14 expected and $149 million in revenue, up 38.3% year over year. However, insiders sold shares recently, while institutional investors own 94.67% of the stock.

Cohu, Inc. (NASDAQ:COHU - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $59.30, but opened at $61.90. Cohu shares last traded at $61.89, with a volume of 77,102 shares traded.

Analysts Set New Price Targets

COHU has been the subject of a number of research reports. Jefferies Financial Group restated a "buy" rating and issued a $74.00 price objective on shares of Cohu in a report on Friday, July 31st. Evercore restated an "outperform" rating and issued a $53.00 price target on shares of Cohu in a research note on Tuesday, April 28th. Robert W. Baird began coverage on Cohu in a research note on Wednesday, July 8th. They issued an "outperform" rating and a $65.00 price objective on the stock. TD Cowen boosted their target price on Cohu from $60.00 to $80.00 and gave the stock a "buy" rating in a research note on Tuesday, June 16th. Finally, Stifel Nicolaus upped their price target on Cohu from $50.00 to $70.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $68.75.

Cohu Trading Up 6.2%

The company has a current ratio of 5.74, a quick ratio of 4.72 and a debt-to-equity ratio of 0.37. The firm has a market cap of $2.98 billion, a PE ratio of -75.86 and a beta of 1.59. The business has a fifty day moving average price of $56.75 and a 200 day moving average price of $44.27.

Cohu (NASDAQ:COHU - Get Free Report) last posted its earnings results on Thursday, July 30th. The semiconductor company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.12. The firm had revenue of $149.00 million during the quarter, compared to analysts' expectations of $144.20 million. Cohu had a negative return on equity of 1.96% and a negative net margin of 7.43%.The firm's revenue was up 38.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.02 earnings per share. Analysts forecast that Cohu, Inc. will post 0.47 EPS for the current year.

Insider Buying and Selling at Cohu

In related news, CEO Luis A. Muller sold 45,154 shares of the 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 of the company's stock, valued at $43,245,597.78. This trade represents a 4.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 Cohu stock in a transaction 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 in the company, valued at $167,343.06. This represents a 74.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 97,975 shares of company stock worth $4,664,219. 3.05% of the stock is owned by insiders.

Hedge Funds Weigh In On Cohu

Several large investors have recently bought and sold shares of the stock. Bank of America Corp DE purchased a new position in shares of Cohu during the second quarter worth about $17,744,000. Freestone Grove Partners LP purchased a new stake in shares of Cohu in the 2nd quarter valued at about $829,000. Man Group plc purchased a new stake in shares of Cohu in the 2nd quarter valued at about $8,468,000. Jupiter Topco LLC acquired a new stake in shares of Cohu in the 2nd quarter valued at about $4,074,000. Finally, Meros Investment Management LP acquired a new stake in shares of Cohu in the 2nd quarter valued at about $14,093,602,000. Institutional investors and hedge funds 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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