indie Semiconductor (NASDAQ:INDI) Stock Price Up 14.6% - Should You Buy?

Key Points

• indie Semiconductor shares jumped 14.6% on Friday, trading as high as $4.87 after closing at $4.18 the prior day. Trading volume was below average, with about 2.83 million shares changing hands.
• Analyst sentiment is mixed but cautious: recent actions included a downgrade to hold from Wall Street Zen and a higher target from UBS to $4.75 with a neutral rating. The stock’s consensus rating remains Hold, with an average target price of $6.92.
• The company’s latest earnings showed roughly in-line results, with EPS of -$0.06 matching estimates and revenue of $55.46 million slightly beating forecasts. Despite modest revenue growth, indie still posted negative margins and a loss, while insiders have recently sold shares and institutions hold most of the stock.

indie Semiconductor, Inc. (NASDAQ:INDI - Get Free Report) shares rose 14.6% during trading on Friday . The stock traded as high as $4.87 and last traded at $4.7890. Approximately 2,832,105 shares traded hands during trading, a decline of 38% from the average daily volume of 4,597,662 shares. The stock had previously closed at $4.18.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on INDI. Wall Street Zen upgraded shares of indie Semiconductor from a "sell" rating to a "hold" rating in a research note on Saturday, May 16th. UBS Group raised their target price on shares of indie Semiconductor from $4.25 to $4.75 and gave the company a "neutral" rating in a research note on Friday, May 8th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of indie Semiconductor in a research note on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, indie Semiconductor has a consensus rating of "Hold" and an average target price of $6.92.

indie Semiconductor Stock Up 19.0%

The company has a debt-to-equity ratio of 1.15, a quick ratio of 3.39 and a current ratio of 4.11. The company has a market capitalization of $1.11 billion, a price-to-earnings ratio of -6.55 and a beta of 2.74. The firm's 50-day simple moving average is $3.42 and its 200-day simple moving average is $3.71.

indie Semiconductor (NASDAQ:INDI - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.06). The company had revenue of $55.46 million for the quarter, compared to analyst estimates of $55.09 million. indie Semiconductor had a negative net margin of 69.76% and a negative return on equity of 29.85%. The business's quarterly revenue was up 2.5% on a year-over-year basis. During the same period last year, the business posted ($0.08) EPS. Sell-side analysts forecast that indie Semiconductor, Inc. will post -0.44 earnings per share for the current year.

Insiders Place Their Bets

In other indie Semiconductor news, CEO Donald Mcclymont sold 18,420 shares of the firm's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $2.99, for a total value of $55,075.80. Following the sale, the chief executive officer directly owned 298,500 shares in the company, valued at $892,515. This trade represents a 5.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Naixi Wu sold 55,000 shares of the firm's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $2.81, for a total transaction of $154,550.00. Following the completion of the sale, the chief financial officer owned 120,787 shares in the company, valued at $339,411.47. This represents a 31.29% decrease in their ownership of the stock. 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 have sold 912,682 shares of company stock worth $3,129,378 in the last ninety days. Insiders own 2.57% of the company's stock.

Hedge Funds Weigh In On indie Semiconductor

A number of hedge funds and other institutional investors have recently made changes to their positions in INDI. Royal Bank of Canada lifted its holdings in shares of indie Semiconductor by 309.7% during the 1st quarter. Royal Bank of Canada now owns 551,007 shares of the company's stock worth $1,122,000 after acquiring an additional 416,519 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of indie Semiconductor by 42.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,002,253 shares of the company's stock worth $2,040,000 after acquiring an additional 298,339 shares during the period. Millennium Management LLC lifted its holdings in shares of indie Semiconductor by 456.6% during the 1st quarter. Millennium Management LLC now owns 3,702,671 shares of the company's stock worth $7,535,000 after acquiring an additional 3,037,435 shares during the period. JPMorgan Chase & Co. lifted its holdings in shares of indie Semiconductor by 5.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 255,322 shares of the company's stock worth $909,000 after acquiring an additional 13,495 shares during the period. Finally, Rhumbline Advisers lifted its holdings in shares of indie Semiconductor by 24.3% during the 2nd quarter. Rhumbline Advisers now owns 299,275 shares of the company's stock worth $1,065,000 after acquiring an additional 58,473 shares during the period. 67.73% of the stock is owned by 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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