MACOM Technology Solutions (NASDAQ:MTSI) Trading Down 10.5% - What's Next?

Key Points

• MACOM Technology Solutions' stock price dropped by 10.5% during trading, closing at $124.37, significantly below its previous close of $139.03.
• Despite the drop, several analysts have raised their price targets and maintained a consensus "Buy" rating, indicating potential future growth.
• Insider trading activity saw significant sales, including CFO John Kober and CEO Stephen G. Daly, who reduced their holdings by 4.56% and 28.76%, respectively, in recent months.

Shares of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) were down 10.5% during trading on Thursday . The stock traded as low as $123.29 and last traded at $124.37. Approximately 465,882 shares changed hands during trading, a decline of 37% from the average daily volume of 739,062 shares. The stock had previously closed at $139.03.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on MTSI shares. Truist Financial increased their price target on MACOM Technology Solutions from $136.00 to $154.00 and gave the company a "buy" rating in a report on Monday, July 7th. Wall Street Zen upgraded MACOM Technology Solutions from a "hold" rating to a "buy" rating in a report on Sunday, July 20th. Barclays raised their price objective on shares of MACOM Technology Solutions from $125.00 to $150.00 and gave the stock an "overweight" rating in a research note on Friday, May 9th. Bank of America raised their price objective on shares of MACOM Technology Solutions from $140.00 to $160.00 and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Finally, Benchmark restated a "buy" rating and issued a $160.00 price objective on shares of MACOM Technology Solutions in a research note on Friday, May 9th. One research analyst has rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $146.13.

MACOM Technology Solutions Stock Performance

The company has a market capitalization of $8.81 billion, a P/E ratio of -117.15, a PEG ratio of 2.28 and a beta of 1.38. The stock has a fifty day simple moving average of $135.53 and a 200-day simple moving average of $120.53. The company has a quick ratio of 3.10, a current ratio of 3.83 and a debt-to-equity ratio of 0.32.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.89 by $0.01. MACOM Technology Solutions had a positive return on equity of 14.02% and a negative net margin of 7.71%. The company had revenue of $252.08 million during the quarter, compared to analysts' expectations of $249.89 million. During the same period last year, the business earned $0.66 earnings per share. The business's revenue was up 32.3% on a year-over-year basis. Equities analysts forecast that MACOM Technology Solutions Holdings, Inc. will post 2.43 EPS for the current year.

Insider Activity

In other MACOM Technology Solutions news, SVP Donghyun Thomas Hwang sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $137.40, for a total value of $687,000.00. Following the sale, the senior vice president owned 30,779 shares in the company, valued at approximately $4,229,034.60. The trade was a 13.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Susan Ocampo sold 104,449 shares of the stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $123.98, for a total value of $12,949,587.02. Following the completion of the sale, the director directly owned 4,118,621 shares of the company's stock, valued at approximately $510,626,631.58. The trade was a 2.47% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 147,812 shares of company stock worth $18,497,908. Corporate insiders own 16.30% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD boosted its stake in MACOM Technology Solutions by 38.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,998,136 shares of the semiconductor company's stock valued at $519,399,000 after buying an additional 1,120,510 shares in the last quarter. Fiera Capital Corp acquired a new stake in shares of MACOM Technology Solutions during the second quarter valued at about $41,744,000. AQR Capital Management LLC boosted its stake in shares of MACOM Technology Solutions by 5,891.8% during the first quarter. AQR Capital Management LLC now owns 247,400 shares of the semiconductor company's stock valued at $23,510,000 after purchasing an additional 243,271 shares in the last quarter. Nuveen LLC acquired a new stake in shares of MACOM Technology Solutions during the first quarter valued at about $23,767,000. Finally, Bank of New York Mellon Corp boosted its stake in shares of MACOM Technology Solutions by 52.2% during the second quarter. Bank of New York Mellon Corp now owns 628,882 shares of the semiconductor company's stock valued at $90,113,000 after purchasing an additional 215,578 shares in the last quarter. Institutional investors own 76.14% of the company's stock.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions Holdings, Inc, together with its subsidiaries, designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum in the United States, China, Australia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, and internationally.