Cohu (NASDAQ:COHU) Upgraded to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Cohu to “strong buy” from “hold,” while other analysts raised price targets; the stock has a consensus “buy” rating and an average target of $68.75.
• Cohu exceeded second-quarter expectations, reporting adjusted EPS of $0.26 versus $0.14 expected and revenue of $149 million, up 38.3% year over year. Management also issued a stronger-than-expected third-quarter revenue outlook of $163 million to $177 million.
• Despite improving sales and adjusted earnings, GAAP profitability remains a concern: Cohu posted a quarterly loss, negative net margin and negative return on equity, while insiders have sold about $4.2 million of stock over the past 90 days.

Cohu (NASDAQ:COHU - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Thursday,Zacks.com reports.

Several other research analysts also recently issued reports on COHU. Stifel Nicolaus lifted their price objective on Cohu from $50.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Needham & Company LLC increased their target price on Cohu from $54.00 to $65.00 and gave the company a "buy" rating in a report on Friday. Robert W. Baird started coverage on Cohu in a research report on Wednesday, July 8th. They set an "outperform" rating and a $65.00 price target for the company. Evercore reissued an "outperform" rating and issued a $53.00 price target on shares of Cohu in a report on Tuesday, April 28th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $74.00 price objective on shares of Cohu in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $68.75.

Cohu Stock Performance

NASDAQ:COHU opened at $47.99 on Thursday. Cohu has a 1-year low of $17.80 and a 1-year high of $74.60. The firm has a market cap of $2.26 billion, a price-to-earnings ratio of -57.82 and a beta of 1.55. The company has a debt-to-equity ratio of 0.37, a current ratio of 6.43 and a quick ratio of 5.31. The firm's fifty day moving average price is $56.71 and its 200 day moving average price is $42.43.

Cohu (NASDAQ:COHU - Get Free Report) last released its earnings results on Thursday, July 30th. The semiconductor company reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.12. Cohu had a negative return on equity of 1.95% and a negative net margin of 7.43%.The company had revenue of $149.00 million during the quarter, compared to the consensus estimate of $144.20 million. During the same quarter last year, the company earned $0.02 earnings per share. Cohu's quarterly revenue was up 38.3% compared to the same quarter last year. On average, sell-side analysts expect that Cohu will post 0.17 EPS for the current year.

Insider Activity

In other Cohu news, Director Steven J. Bilodeau sold 10,257 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $44.85, for a total value of $460,026.45. Following the completion of the transaction, the director directly owned 52,272 shares in the company, valued at approximately $2,344,399.20. The trade was a 16.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Christopher Bohrson sold 1,000 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $63.88, for a total value of $63,880.00. Following the transaction, the senior vice president directly owned 171,702 shares in the company, valued at approximately $10,968,323.76. This represents a 0.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 89,668 shares of company stock valued at $4,210,016 in the last 90 days. Insiders own 3.05% of the company's stock.

Hedge Funds Weigh In On Cohu

Several institutional investors have recently added to or reduced their stakes in the business. Hollencrest Capital Management purchased a new position in Cohu during the first quarter worth about $31,000. Farther Finance Advisors LLC grew its holdings in Cohu by 45.0% in the 4th quarter. Farther Finance Advisors LLC now owns 1,456 shares of the semiconductor company's stock valued at $34,000 after buying an additional 452 shares during the period. Kestra Advisory Services LLC purchased a new stake in Cohu in the 4th quarter valued at about $34,000. Los Angeles Capital Management LLC acquired a new position in shares of Cohu during the 4th quarter valued at about $37,000. Finally, Smartleaf Asset Management LLC increased its stake 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 acquiring an additional 1,415 shares during the last quarter. 94.67% of the stock is currently owned by institutional investors and hedge funds.

Key Cohu News

Here are the key news stories impacting Cohu this week:

• Positive Sentiment: Second-quarter results exceeded expectations: Cohu reported adjusted earnings of $0.26 per share versus the $0.14 consensus estimate, while revenue rose 38.3% year over year to $149.0 million, ahead of the $144.2 million forecast. Results benefited from AI-compute demand, higher tester and recurring-service sales, and a favorable product mix. COHU Q2 Earnings Beat Estimates on AI Compute and Favorable Mix
• Positive Sentiment: Strong third-quarter outlook: Management forecast revenue of $163 million to $177 million, well above the $146.6 million analyst consensus. The outlook suggests continued momentum from high-performance computing and semiconductor test demand. Cohu jumps on strong Q2 results, guidance
• Positive Sentiment: Analysts raised their valuations: B. Riley lifted its price target from $65 to $69 and assigned a Buy rating. Needham analyst Charles Shi also reiterated a Buy rating and raised his target to $65, citing accelerating growth and HPC tailwinds. B. Riley analyst action Needham analyst action
• Negative Sentiment: GAAP profitability remains a concern: Although adjusted earnings were positive, Cohu posted a GAAP loss of approximately $0.2 million for the quarter, alongside a negative net margin and negative return on equity. Investors may therefore focus on whether improving revenue and mix can translate into sustainable GAAP profits. Cohu Reports Second Quarter 2026 Results

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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