Cohu (NASDAQ:COHU) Posts Earnings Results

Key Points

• Cohu exceeded quarterly expectations, reporting adjusted earnings of $0.43 per share versus the $0.35 consensus estimate, while revenue reached $172.96 million against expectations of $170.25 million.
• Shares rose $2.16 to $53.14, though the company continued to report a negative net margin of 7.43% and negative return on equity of 1.96%.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $68.75 target price; however, insiders sold approximately $8.32 million of stock over the past three months.

Cohu (NASDAQ:COHU - Get Free Report) issued its earnings results on Wednesday. The semiconductor company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.08, FiscalAI reports. The firm had revenue of $172.96 million for the quarter, compared to analysts' expectations of $170.25 million. Cohu had a negative return on equity of 1.96% and a negative net margin of 7.43%.

Cohu Price Performance

Shares of COHU traded up $2.16 on Wednesday, hitting $53.14. The company's stock had a trading volume of 1,503,077 shares, compared to its average volume of 1,117,454. The company has a debt-to-equity ratio of 0.37, a current ratio of 5.74 and a quick ratio of 4.72. The company has a market capitalization of $2.52 billion, a PE ratio of -64.02 and a beta of 1.51. Cohu has a fifty-two week low of $21.10 and a fifty-two week high of $75.72. The company has a 50 day moving average price of $57.20 and a 200 day moving average price of $46.55.

Insider Buying and Selling at Cohu

In other Cohu news, CEO Luis A. Muller sold 55,794 shares of the company's stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $60.00, for a total value of $3,347,640.00. Following the completion of the sale, the chief executive officer owned 871,825 shares of the company's stock, valued at approximately $52,309,500. This represents a 6.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Also, Director Nina Richardson sold 3,055 shares of Cohu stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $51.54, for a total value of $157,454.70. Following the transaction, the director owned 39,093 shares in the company, valued at $2,014,853.22. This trade represents a 7.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 134,999 shares of company stock valued at $8,321,309 in the last three months. Insiders own 3.05% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Cohu in a research note on Thursday, October 15th. Stifel Nicolaus raised their price target on shares of Cohu from $50.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, July 10th. B. Riley Financial increased their target price on shares of Cohu from $65.00 to $69.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Zacks Research cut shares of Cohu from a "strong-buy" rating to a "hold" rating in a report on Friday, August 28th. Finally, Needham & Company LLC boosted their target price on Cohu from $54.00 to $65.00 and gave the stock a "buy" rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $68.75.

Cohu Company Profile

Cohu, Inc is a global provider of semiconductor test and inspection equipment and related services. The company supplies solutions used by semiconductor manufacturers and outsourced semiconductor assembly and test providers to evaluate devices during production, helping improve manufacturing quality, reliability and efficiency.

Cohu's product portfolio includes semiconductor test handlers, contactors and other interface products, inspection and metrology systems, thermal-management equipment, and software for test-data analysis and factory automation.

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