indie Semiconductor (NASDAQ:INDI) Trading 10.7% Higher - Here's Why

Key Points

• indie Semiconductor (NASDAQ: INDI) jumped 10.7% on Monday, briefly reaching $4.82 before closing near $4.80, with trading volume below its daily average.
• Recent analyst action has been mixed: TD Cowen started coverage with a hold rating and a $4.00 target, while UBS raised its target to $4.75; overall, the stock carries an average hold rating and a $5.58 price target.
• The company’s latest quarterly results met EPS expectations and slightly beat revenue estimates, but it still posted a loss; meanwhile, insiders have been selling shares and institutional investors continue to hold the majority of the stock.

indie Semiconductor, Inc. (NASDAQ:INDI - Get Free Report) shares were up 10.7% during trading on Monday . The stock traded as high as $4.82 and last traded at $4.7950. Approximately 2,297,377 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 5,080,692 shares. The stock had previously closed at $4.33.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. TD Cowen assumed coverage on indie Semiconductor in a report on Wednesday, June 10th. They set a "hold" rating and a $4.00 target price for the company. UBS Group boosted their price target on indie Semiconductor from $4.25 to $4.75 and gave the company a "neutral" rating in a report on Friday, May 8th. Wall Street Zen upgraded indie Semiconductor from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of indie Semiconductor in a research report on Tuesday, April 21st. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $5.58.

indie Semiconductor Stock Performance

The company has a market capitalization of $1.08 billion, a price-to-earnings ratio of -6.33 and a beta of 2.75. The stock's 50 day moving average price is $4.29 and its 200 day moving average price is $3.77. The company has a current ratio of 4.11, a quick ratio of 3.39 and a debt-to-equity ratio of 1.15.

indie Semiconductor (NASDAQ:INDI - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.06). indie Semiconductor had a negative return on equity of 29.85% and a negative net margin of 69.76%.The business had revenue of $55.46 million for the quarter, compared to the consensus estimate of $55.09 million. During the same quarter in the previous year, the business earned ($0.08) earnings per share. indie Semiconductor's quarterly revenue was up 2.5% on a year-over-year basis. Analysts expect that indie Semiconductor, Inc. will post -0.52 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Naixi Wu sold 12,898 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $5.12, for a total value of $66,037.76. Following the completion of the sale, the chief financial officer owned 114,787 shares of the company's stock, valued at approximately $587,709.44. This represents a 10.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Donald Mcclymont sold 50,000 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $4.19, for a total transaction of $209,500.00. Following the completion of the transaction, the chief executive officer directly owned 307,363 shares of the company's stock, valued at $1,287,850.97. This represents a 13.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,611,030 shares of company stock worth $7,842,404. 2.57% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Primecap Management Co. CA grew its holdings in indie Semiconductor by 3.0% during the fourth quarter. Primecap Management Co. CA now owns 29,774,708 shares of the company's stock worth $105,105,000 after purchasing an additional 873,940 shares during the period. Bamco Inc. NY increased its holdings in shares of indie Semiconductor by 0.7% during the 4th quarter. Bamco Inc. NY now owns 21,705,742 shares of the company's stock worth $76,621,000 after acquiring an additional 148,455 shares during the last quarter. Granahan Investment Management LLC lifted its holdings in indie Semiconductor by 17.8% during the 1st quarter. Granahan Investment Management LLC now owns 20,283,839 shares of the company's stock valued at $65,314,000 after purchasing an additional 3,067,255 shares during the last quarter. Vanguard Group Inc. boosted its position in indie Semiconductor by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 15,493,648 shares of the company's stock worth $54,693,000 after purchasing an additional 210,463 shares during the period. Finally, Elemental Capital Partners LLC increased its holdings in shares of indie Semiconductor by 60.0% in the first quarter. Elemental Capital Partners LLC now owns 12,644,393 shares of the company's stock valued at $40,715,000 after purchasing an additional 4,741,680 shares during the last quarter. 67.73% of the stock is currently owned by institutional investors and hedge funds.

indie Semiconductor Company Profile

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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