MACOM Technology Solutions (NASDAQ:MTSI) Shares Down 10.5% - Time to Sell?

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.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report)'s stock price was down 10.5% during trading on Thursday . The company traded as low as $123.29 and last traded at $124.37. Approximately 465,882 shares traded hands during mid-day 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

A number of equities analysts recently commented on MTSI shares. Stifel Nicolaus boosted their price objective on shares of MACOM Technology Solutions from $140.00 to $155.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Wall Street Zen raised MACOM Technology Solutions from a "hold" rating to a "buy" rating in a research report on Sunday, July 20th. BNP Paribas raised MACOM Technology Solutions from a "neutral" rating to an "outperform" rating and set a $135.00 price target on the stock in a research report on Wednesday, April 9th. Benchmark reaffirmed a "buy" rating and issued a $160.00 price target on shares of MACOM Technology Solutions in a report on Friday, May 9th. Finally, Truist Financial upped their price target on shares of MACOM Technology Solutions from $136.00 to $154.00 and gave the company a "buy" rating in a report on Monday, July 7th. One research analyst has rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $146.13.

MACOM Technology Solutions Stock Performance

The company has a market cap of $9.49 billion, a price-to-earnings ratio of -104.32, a P/E/G ratio of 2.65 and a beta of 1.38. The company has a current ratio of 3.56, a quick ratio of 2.86 and a debt-to-equity ratio of 0.31. The stock's fifty day simple moving average is $135.56 and its 200 day simple moving average is $121.38.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.85 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.84 by $0.01. The business had revenue of $235.89 million during the quarter, compared to the consensus estimate of $230.04 million. MACOM Technology Solutions had a negative net margin of 10.24% and a positive return on equity of 13.32%. The business's revenue was up 30.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.59 EPS. As a group, analysts anticipate that MACOM Technology Solutions Holdings, Inc. will post 2.43 earnings per share for the current year.

Insider Activity

In other MACOM Technology Solutions news, CFO John Kober sold 2,250 shares of the firm's stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $125.65, for a total value of $282,712.50. Following the completion of the transaction, the chief financial officer owned 47,128 shares of the company's stock, valued at $5,921,633.20. This trade represents a 4.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Stephen G. Daly sold 14,665 shares of MACOM Technology Solutions stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $122.71, for a total transaction of $1,799,542.15. Following the sale, the chief executive officer directly owned 36,327 shares of the company's stock, valued at approximately $4,457,686.17. This trade represents a 28.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 447,812 shares of company stock worth $55,571,908 in the last three months. 16.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On MACOM Technology Solutions

Several institutional investors have recently modified their holdings of the company. Summit Investment Advisors Inc. grew its position in shares of MACOM Technology Solutions by 0.4% in the first quarter. Summit Investment Advisors Inc. now owns 26,211 shares of the semiconductor company's stock valued at $2,631,000 after purchasing an additional 110 shares during the last quarter. Fox Run Management L.L.C. acquired a new position in MACOM Technology Solutions during the 2nd quarter worth $508,000. Penserra Capital Management LLC bought a new position in shares of MACOM Technology Solutions during the second quarter worth about $11,385,000. First Horizon Advisors Inc. boosted its holdings in shares of MACOM Technology Solutions by 112.9% in the 2nd quarter. First Horizon Advisors Inc. now owns 362 shares of the semiconductor company's stock valued at $52,000 after buying an additional 192 shares during the period. Finally, Huntington National Bank boosted its holdings in shares of MACOM Technology Solutions by 41.4% in the 2nd quarter. Huntington National Bank now owns 632 shares of the semiconductor company's stock valued at $91,000 after buying an additional 185 shares during the period. 76.14% of the stock is owned by hedge funds and other institutional investors.

About MACOM Technology Solutions

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.

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