MACOM Technology Solutions (NASDAQ:MTSI) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Shares gapped up pre-market after the company beat expectations, opening at $353.87 vs a prior close of $309.81 and last trading around $329.56 on elevated volume.
• Earnings topped estimates: Q2 EPS was $1.09 vs. $1.07 expected and revenue was $288.96M vs. $285.2M, with revenue up 22.5% year-over-year; the company guided Q3 2026 EPS to $1.31–$1.37.
• Analysts hold a consensus of "Moderate Buy" with a $251.45 target amid multiple price-target raises, while insiders have sold significant stock (651,557 shares worth about $161M over the last three months).

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $309.81, but opened at $353.87. MACOM Technology Solutions shares last traded at $329.5550, with a volume of 215,957 shares.

The semiconductor company reported $1.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.07 by $0.02. The company had revenue of $288.96 million during the quarter, compared to analysts' expectations of $285.20 million. MACOM Technology Solutions had a return on equity of 15.55% and a net margin of 15.88%.The business's revenue was up 22.5% on a year-over-year basis. During the same period last year, the business earned $0.85 earnings per share. MACOM Technology Solutions has set its Q3 2026 guidance at 1.310-1.370 EPS.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on MTSI. Zacks Research cut MACOM Technology Solutions from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 29th. Weiss Ratings raised MACOM Technology Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, January 26th. Jefferies Financial Group boosted their price objective on MACOM Technology Solutions from $185.00 to $260.00 and gave the stock a "buy" rating in a report on Monday, February 2nd. Stifel Nicolaus upped their target price on shares of MACOM Technology Solutions from $255.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Finally, Loop Capital started coverage on MACOM Technology Solutions in a research note on Friday, April 10th. They issued a "buy" rating and a $300.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, MACOM Technology Solutions presently has a consensus rating of "Moderate Buy" and a consensus target price of $251.45.

Insider Buying and Selling

In other news, CFO John Kober sold 7,196 shares of MACOM Technology Solutions stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $243.07, for a total value of $1,749,131.72. Following the transaction, the chief financial officer owned 48,508 shares in the company, valued at approximately $11,790,839.56. This trade represents a 12.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Susan Ocampo sold 261,763 shares of MACOM Technology Solutions stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $254.43, for a total value of $66,600,360.09. Following the completion of the transaction, the insider owned 3,759,895 shares in the company, valued at approximately $956,630,084.85. The trade was a 6.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 651,557 shares of company stock valued at $161,175,774. 0.36% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MACOM Technology Solutions

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. KBC Group NV grew its position in MACOM Technology Solutions by 0.9% during the 1st quarter. KBC Group NV now owns 23,823 shares of the semiconductor company's stock worth $5,290,000 after acquiring an additional 210 shares during the last quarter. Trivest Advisors Ltd bought a new stake in MACOM Technology Solutions during the 1st quarter worth $14,301,000. Swiss National Bank grew its position in MACOM Technology Solutions by 1.0% during the 1st quarter. Swiss National Bank now owns 133,550 shares of the semiconductor company's stock worth $29,657,000 after acquiring an additional 1,300 shares during the last quarter. California Public Employees Retirement System grew its position in MACOM Technology Solutions by 3.9% during the 1st quarter. California Public Employees Retirement System now owns 110,216 shares of the semiconductor company's stock worth $24,476,000 after acquiring an additional 4,104 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in MACOM Technology Solutions by 4.2% during the 1st quarter. Bank of New York Mellon Corp now owns 400,926 shares of the semiconductor company's stock worth $89,034,000 after acquiring an additional 16,043 shares during the last quarter. Institutional investors own 76.14% of the company's stock.

MACOM Technology Solutions Price Performance

The firm has a market cap of $25.24 billion, a P/E ratio of 157.11, a price-to-earnings-growth ratio of 5.04 and a beta of 1.60. The company has a current ratio of 3.96, a quick ratio of 3.18 and a debt-to-equity ratio of 0.30. The business has a 50-day moving average of $247.09 and a two-hundred day moving average of $208.24.

MACOM Technology Solutions Company Profile

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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