MACOM Technology Solutions (NASDAQ:MTSI) Shares Down 9.2% - Here's What Happened

Key Points

• MACOM shares fell 9.2% to about $297.40 in mid-day trading, with volume significantly below the average session level.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus, with 10 Strong Buy/Buy ratings, four Holds and an average price target of $341.82.
• The company recently beat quarterly expectations, reporting $1.40 in EPS versus $1.35 expected and $342.24 million in revenue, up 35.8% year over year.

Shares of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) traded down 9.2% on Tuesday . The stock traded as low as $295.73 and last traded at $297.4010. Approximately 416,899 shares were traded during mid-day trading, a decline of 72% from the average session volume of 1,463,107 shares. The stock had previously closed at $327.53.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Wall Street Zen upgraded shares of MACOM Technology Solutions from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings reiterated a "hold (c+)" rating on shares of MACOM Technology Solutions in a research note on Wednesday, August 5th. Benchmark started coverage on shares of MACOM Technology Solutions in a research note on Thursday, August 13th. They issued a "buy" rating and a $375.00 price objective for the company. Zacks Research lowered MACOM Technology Solutions from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Finally, Needham & Company LLC lifted their price target on MACOM Technology Solutions from $400.00 to $410.00 and gave the company a "buy" rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $341.82.

MACOM Technology Solutions Price Performance

The company has a market cap of $22.62 billion, a PE ratio of 95.23, a PEG ratio of 1.99 and a beta of 1.70. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.34 and a quick ratio of 1.78. The stock's 50-day moving average is $318.11 and its 200 day moving average is $290.99.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.35 by $0.05. MACOM Technology Solutions had a return on equity of 17.82% and a net margin of 20.70%.The firm had revenue of $342.24 million during the quarter, compared to analyst estimates of $336.08 million. During the same quarter in the prior year, the business posted $0.90 EPS. The business's revenue for the quarter was up 35.8% compared to the same quarter last year. MACOM Technology Solutions has set its Q4 2026 guidance at 1.970-2.030 EPS. On average, equities analysts anticipate that MACOM Technology Solutions Holdings, Inc. will post 3.76 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Stephen G. Daly sold 15,828 shares of the company's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $365.75, for a total transaction of $5,789,091.00. Following the transaction, the chief executive officer owned 38,389 shares in the company, valued at $14,040,776.75. This represents a 29.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Donghyun Thomas Hwang sold 2,620 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $383.87, for a total transaction of $1,005,739.40. Following the completion of the transaction, the senior vice president directly owned 29,756 shares of the company's stock, valued at $11,422,435.72. The trade was a 8.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bell Investment Advisors Inc acquired a new position in shares of MACOM Technology Solutions in the 2nd quarter valued at $49,000. GHP Investment Advisors Inc. purchased a new stake in MACOM Technology Solutions during the 1st quarter valued at about $31,000. Keating Financial Advisory Services Inc. acquired a new position in shares of MACOM Technology Solutions in the second quarter valued at about $58,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of MACOM Technology Solutions in the second quarter valued at about $67,000. Finally, Measured Wealth Private Client Group LLC purchased a new position in shares of MACOM Technology Solutions in the fourth quarter worth about $30,000. Hedge funds and other institutional investors own 76.14% of the company's stock.

About MACOM Technology Solutions

MACOM Technology Solutions is a semiconductor company specializing in high-performance analog, microwave, millimeter-wave and photonic semiconductor solutions. Its product portfolio includes amplifiers, switches, modulators, detectors and integrated circuits designed to optimize signal integrity, power management and data transmission. MACOM's offerings address both digital and optical domains, providing critical building blocks for next-generation communications infrastructure.

The company's solutions serve a diverse set of end markets, including wireless and wireline telecom, data centers, satellite communications, aerospace and defense, industrial and automotive applications.

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