MACOM Technology Solutions (NASDAQ:MTSI) Trading Down 7.9% - Time to Sell?

Key Points

• MACOM Technology Solutions shares fell 7.9% on Friday, trading as low as $360.69 and below the prior close of $391.09, with volume running well under normal levels.
• Despite the stock drop, Wall Street sentiment remains constructive: multiple analysts recently raised price targets, and the consensus rating is still Moderate Buy with an average target of $321.36.
• The company’s latest quarter showed solid fundamentals, with earnings and revenue both beating estimates and revenue up 22.5% year over year, though recent insider selling and some near-term estimate cuts may be weighing on sentiment.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report)'s share price traded down 7.9% during trading on Friday . The company traded as low as $360.69 and last traded at $360.0020. 487,823 shares were traded during trading, a decline of 63% from the average session volume of 1,334,847 shares. The stock had previously closed at $391.09.

Trending Headlines about MACOM Technology Solutions

Here are the key news stories impacting MACOM Technology Solutions this week:

• Positive Sentiment: Wall Street sentiment remains constructive overall, with Zacks Research reiterating a Strong-Buy rating and lifting several forward EPS estimates, including FY2026, FY2027, and FY2028.
• Positive Sentiment: The company’s earlier quarterly update and guidance beat helped fuel the recent rally, and recent analyst price-target increases suggest investors still expect solid longer-term growth.
• Neutral Sentiment: Insider sales and recent filing activity may be adding to near-term supply concerns, but the article notes these transactions may have been planned rather than signaling a change in fundamentals.
• Neutral Sentiment: Broader semiconductor volatility is contributing to the move, indicating MTSI’s weakness may be partly sector-driven rather than company-specific.
• Negative Sentiment: Recent analyst estimate cuts for a few near-term quarters could temper expectations, even though the broader trend in estimates remains positive.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Barclays upped their target price on MACOM Technology Solutions from $400.00 to $450.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Stifel Nicolaus upped their target price on MACOM Technology Solutions from $255.00 to $300.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Needham & Company LLC upped their price target on MACOM Technology Solutions from $250.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of MACOM Technology Solutions in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. upped their price target 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. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $321.36.

MACOM Technology Solutions Stock Performance

The company has a market capitalization of $27.42 billion, a PE ratio of 155.64, a PEG ratio of 3.32 and a beta of 1.60. The company has a 50 day moving average of $293.19 and a two-hundred day moving average of $234.01. 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 issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.02. The company had revenue of $288.96 million for the quarter, compared to analysts' expectations of $285.20 million. MACOM Technology Solutions had a return on equity of 16.01% and a net margin of 16.46%.The firm's revenue for the quarter was up 22.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.85 earnings per share. MACOM Technology Solutions has set its Q3 2026 guidance at 1.310-1.370 EPS. As a group, equities research analysts predict that MACOM Technology Solutions Holdings, Inc. will post 3.65 earnings per share for the current year.

Insider Transactions at MACOM Technology Solutions

In other news, CFO John Kober sold 7,644 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $359.25, for a total value of $2,746,107.00. Following the sale, the chief financial officer directly owned 40,972 shares of the company's stock, valued at approximately $14,719,191. This represents a 15.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 value of $304,000.00. Following the completion of the sale, the director directly owned 14,338 shares in the company, valued at approximately $5,448,440. This represents a 5.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 59,648 shares of company stock valued at $21,966,111. 0.36% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On MACOM Technology Solutions

A number of institutional investors have recently modified their holdings of MTSI. Advisory Services Network LLC purchased a new stake in shares of MACOM Technology Solutions in the third quarter worth $25,000. EverSource Wealth Advisors LLC grew its stake in shares of MACOM Technology Solutions by 75.6% in the third quarter. EverSource Wealth Advisors LLC now owns 216 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 93 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of MACOM Technology Solutions during the fourth quarter valued at $30,000. GHP Investment Advisors Inc. bought a new position in shares of MACOM Technology Solutions during the first quarter valued at $31,000. Finally, Smartleaf Asset Management LLC lifted its holdings in shares of MACOM Technology Solutions by 108.7% during the third quarter. Smartleaf Asset Management LLC now owns 288 shares of the semiconductor company's stock valued at $36,000 after purchasing an additional 150 shares in the last quarter. 76.14% of the stock is owned by hedge funds and other institutional investors.

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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