indie Semiconductor (NASDAQ:INDI) Trading Down 8.5% - Should You Sell?

Key Points

• indie Semiconductor shares fell 8.5% to about $3.70 in midday trading, with volume significantly below the average session level.
• Analysts maintain a broadly neutral outlook: the stock has an average “Hold” rating and a $4.75 price target, although individual targets range from $4.50 to $5.00.
• The company’s latest quarter showed 24% year-over-year revenue growth to $64.01 million and an in-line loss of $0.05 per share, but profitability remained weak, with a negative net margin of 65.18%; insiders also sold more than $7.2 million of stock over the past three months.

indie Semiconductor, Inc. (NASDAQ:INDI - Get Free Report)'s share price dropped 8.5% during mid-day trading on Monday . The company traded as low as $3.67 and last traded at $3.6970. Approximately 1,451,032 shares were traded during trading, a decline of 72% from the average session volume of 5,116,526 shares. The stock had previously closed at $4.04.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on INDI. TD Cowen upped their price target on shares of indie Semiconductor from $4.00 to $4.50 and gave the stock a "hold" rating in a research report on Monday, July 13th. Wall Street Zen raised indie Semiconductor from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Weiss Ratings reissued a "sell (d-)" rating on shares of indie Semiconductor in a report on Friday, July 17th. Roth Capital set a $5.00 target price on shares of indie Semiconductor in a research note on Friday. Finally, UBS Group upped their price target 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. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $4.75.

indie Semiconductor Stock Down 11.0%

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 stock has a market cap of $815.71 million, a P/E ratio of -4.92 and a beta of 2.79. The stock's fifty day simple moving average is $3.99 and its 200-day simple moving average is $3.76.

indie Semiconductor (NASDAQ:INDI - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.05). indie Semiconductor had a negative net margin of 65.18% and a negative return on equity of 30.89%. The firm had revenue of $64.01 million for the quarter, compared to analyst estimates of $62.49 million. During the same quarter in the prior year, the business posted ($0.08) EPS. The business's revenue was up 24.0% compared to the same quarter last year. As a group, research analysts forecast that indie Semiconductor, Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Naixi Wu sold 19,640 shares of the company's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $4.37, for a total transaction of $85,826.80. Following the completion of the sale, the chief financial officer directly owned 134,425 shares in the company, valued at approximately $587,437.25. This represents a 12.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Michael Wittmann sold 6,250 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $4.67, for a total value of $29,187.50. Following the sale, the chief operating officer directly owned 139,352 shares in the company, valued at approximately $650,773.84. This trade represents a 4.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,440,456 shares of company stock worth $7,262,613. 2.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Optiver Holding B.V. increased its holdings in indie Semiconductor by 7,163.7% in the 1st quarter. Optiver Holding B.V. now owns 8,208 shares of the company's stock valued at $26,000 after buying an additional 8,095 shares during the period. Evergreen Capital Management LLC bought a new stake in shares of indie Semiconductor during the 2nd quarter worth approximately $37,000. Principal Financial Group Inc. acquired a new stake in shares of indie Semiconductor during the 1st quarter worth approximately $35,000. Caitong International Asset Management Co. Ltd raised its position in indie Semiconductor by 45,829.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 11,023 shares of the company's stock valued at $39,000 after purchasing an additional 10,999 shares in the last quarter. Finally, Jump Financial LLC acquired a new position in indie Semiconductor during the second quarter valued at approximately $39,000. Institutional investors and hedge funds own 67.73% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source