indie Semiconductor (NASDAQ:INDI) Shares Up 8.9% - Should You Buy?

Key Points

• Shares rose 8.9% to $3.235 on Thursday, but trading was light (≈1.45M shares vs. a 4.21M average), and the stock currently has a market cap of about $719M.
• Wall Street shows a consensus of "Moderate Buy" (5 Buys, 1 Hold, 1 Sell) with an average price target of $6.45 (UBS $4.25), yet the company has negative earnings (recent EPS –$0.07; sell-side expects –$0.54 for the year) and negative margins.
• Insiders have been net sellers recently—612,682 shares sold in the last three months (notable sales by the COO and CFO)—while institutional ownership is high at ~67.7% and insiders hold about 5.6% of shares.

indie Semiconductor, Inc. (NASDAQ:INDI - Get Free Report) rose 8.9% on Thursday . The stock traded as high as $3.22 and last traded at $3.2350. Approximately 1,451,187 shares changed hands during trading, a decline of 66% from the average daily volume of 4,209,566 shares. The stock had previously closed at $2.97.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. UBS Group set a $4.25 target price on indie Semiconductor in a research report on Sunday, February 22nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of indie Semiconductor in a research report on Thursday, January 22nd. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $6.45.

indie Semiconductor Stock Up 8.2%

The company has a market capitalization of $719.07 million, a PE ratio of -4.40 and a beta of 2.56. The company has a debt-to-equity ratio of 0.88, a current ratio of 3.73 and a quick ratio of 3.10. The company has a 50-day moving average of $3.14 and a two-hundred day moving average of $3.88.

indie Semiconductor (NASDAQ:INDI - Get Free Report) last released its earnings results on Thursday, February 19th. The company reported ($0.07) earnings per share for the quarter, meeting the consensus estimate of ($0.07). indie Semiconductor had a negative return on equity of 29.33% and a negative net margin of 66.23%.The company had revenue of $58.01 million for the quarter, compared to the consensus estimate of $57.11 million. During the same period in the previous year, the business earned ($0.07) earnings per share. indie Semiconductor's quarterly revenue was up .0% compared to the same quarter last year. Sell-side analysts anticipate that indie Semiconductor, Inc. will post -0.54 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Michael Wittmann sold 37,500 shares of the business's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $3.50, for a total value of $131,250.00. Following the transaction, the chief operating officer directly owned 123,885 shares in the company, valued at $433,597.50. The trade was a 23.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Naixi Wu sold 55,000 shares of the business's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $2.81, for a total value of $154,550.00. Following the completion of the transaction, the chief financial officer owned 120,787 shares in the company, valued at $339,411.47. The trade was a 31.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 612,682 shares of company stock valued at $1,883,638 over the last three months. Insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On indie Semiconductor

Several large investors have recently made changes to their positions in INDI. Evergreen Capital Management LLC bought a new stake in shares of indie Semiconductor in the second quarter worth about $37,000. Gainplan LLC bought a new stake in shares of indie Semiconductor in the fourth quarter worth about $39,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of indie Semiconductor by 45,829.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 11,023 shares of the company's stock worth $39,000 after purchasing an additional 10,999 shares during the last quarter. Jump Financial LLC bought a new stake in shares of indie Semiconductor in the second quarter worth about $39,000. Finally, HBK Sorce Advisory LLC bought a new stake in shares of indie Semiconductor in the third quarter worth about $41,000. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

About indie Semiconductor

indie Semiconductor, Inc is a fabless semiconductor company headquartered in San Jose, California, that specializes in advanced chip solutions for the automotive industry. The company designs and develops microcontrollers, sensor processing units, application processors and power management integrated circuits tailored for electric vehicles (EVs), advanced driver assistance systems (ADAS), infotainment and digital clusters. indie's product portfolio aims to deliver high performance, energy efficiency and functional safety to meet stringent automotive requirements.

Originally formed as Integrated Memory Systems in 2021 through a business combination with a special purpose acquisition company, the firm rebranded to indie Semiconductor in early 2022.

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