MACOM Technology Solutions (NASDAQ:MTSI) Trading Down 7.9% - Here's Why

Key Points

• MACOM Technology Solutions shares fell 7.9% on Wednesday, trading as low as $350.32 after closing at $380.37 the prior day, with volume well below average.
• Analyst sentiment remains broadly positive despite the drop: several firms raised price targets, and the stock carries an average Moderate Buy rating with a consensus price target of $335.00.
• The company recently posted better-than-expected quarterly results, beating EPS and revenue estimates and reporting 22.5% year-over-year revenue growth, though recent insider selling and the stock’s high valuation may be weighing on sentiment.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) shares dropped 7.9% on Wednesday . The company traded as low as $350.32 and last traded at $350.4950. Approximately 641,759 shares were traded during trading, a decline of 55% from the average session volume of 1,440,955 shares. The stock had previously closed at $380.37.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on MTSI shares. Barclays raised their target price on MACOM Technology Solutions from $400.00 to $450.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. Truist Financial increased their price objective on MACOM Technology Solutions from $261.00 to $375.00 and gave the company a "buy" rating in a report on Friday, May 8th. JPMorgan Chase & Co. raised their price objective on MACOM Technology Solutions from $240.00 to $345.00 and gave the stock a "neutral" rating in a research note on Friday, May 8th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of MACOM Technology Solutions in a report on Friday, May 8th. Finally, HC Wainwright reiterated a "buy" rating on shares of MACOM Technology Solutions in a research report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $335.00.

MACOM Technology Solutions Stock Performance

The firm's fifty day simple moving average is $355.00 and its 200 day simple moving average is $266.82. The company has a market capitalization of $26.69 billion, a PE ratio of 151.14, a price-to-earnings-growth ratio of 3.06 and a beta of 1.66. The company has a debt-to-equity ratio of 0.29, a current ratio of 7.52 and a quick ratio of 5.84.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $1.07 by $0.02. MACOM Technology Solutions had a return on equity of 16.01% and a net margin of 16.46%.The business had revenue of $288.95 million during the quarter, compared to analyst estimates of $285.20 million. During the same quarter last year, the business posted $0.85 EPS. The company's revenue was up 22.5% on a year-over-year basis. MACOM Technology Solutions has set its Q3 2026 guidance at 1.310-1.370 EPS. On average, research analysts predict that MACOM Technology Solutions Holdings, Inc. will post 3.68 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Stephen G. Daly sold 15,828 shares of the stock in a transaction on 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 sale, the chief executive officer directly owned 38,389 shares of the company's stock, valued at approximately $14,040,776.75. This represents a 29.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles R. Bland sold 800 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $380.00, for a total transaction of $304,000.00. Following the sale, the director directly owned 14,338 shares in the company, valued at $5,448,440. This trade represents a 5.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 78,096 shares of company stock worth $28,760,941. Corporate insiders own 0.36% of the company's stock.

Institutional Investors Weigh In On MACOM Technology Solutions

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in shares of MACOM Technology Solutions by 2.2% in the 4th quarter. Vanguard Group Inc. now owns 7,225,100 shares of the semiconductor company's stock valued at $1,237,515,000 after purchasing an additional 157,343 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in MACOM Technology Solutions by 7.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,934,684 shares of the semiconductor company's stock valued at $331,374,000 after purchasing an additional 136,262 shares during the period. Alliancebernstein L.P. increased its position in shares of MACOM Technology Solutions by 11.7% in the third quarter. Alliancebernstein L.P. now owns 1,494,736 shares of the semiconductor company's stock valued at $186,080,000 after buying an additional 156,194 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of MACOM Technology Solutions by 3.0% during the 4th quarter. Geode Capital Management LLC now owns 1,267,103 shares of the semiconductor company's stock worth $217,073,000 after buying an additional 37,222 shares during the period. Finally, GW&K Investment Management LLC raised its stake in shares of MACOM Technology Solutions by 6.1% during the 4th quarter. GW&K Investment Management LLC now owns 1,217,935 shares of the semiconductor company's stock worth $208,609,000 after buying an additional 70,167 shares during the period. 76.14% of the stock is owned by hedge funds and other institutional investors.

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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