Tower Semiconductor (NASDAQ:TSEM) Stock Sees Unusually High Put Option Buying

Key Points

• Put-option activity surged: Traders bought 26,831 put options on Tower Semiconductor, 467% above its average volume of 4,731, signaling unusually high hedging or bearish interest.
• Insiders have been selling: CEO Russell Ellwanger sold 104,226 shares worth about $25.9 million, while insiders sold 181,767 shares valued at approximately $45.6 million over the last quarter.
• Analysts remain broadly bullish: Tower Semiconductor holds a “Moderate Buy” consensus rating with a $316 average price target, despite shares trading at $193.52 and valuation metrics including a 76.49 price-to-earnings ratio.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Traders bought 26,831 put options on the company. This represents an increase of 467% compared to the average volume of 4,731 put options.

Insider Transactions at Tower Semiconductor

In other Tower Semiconductor news, CEO Russell Ellwanger sold 104,226 shares of the company's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $248.34, for a total value of $25,883,484.84. Following the completion of the sale, the chief executive officer directly owned 526,788 shares in the company, valued at approximately $130,822,531.92. This represents a 16.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Yoav Chelouche sold 232 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $215.06, for a total value of $49,893.92. Following the transaction, the director directly owned 33,734 shares in the company, valued at $7,254,834.04. The trade was a 0.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 181,767 shares of company stock valued at $45,610,065 in the last quarter. 1.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tower Semiconductor

Several institutional investors have recently added to or reduced their stakes in TSEM. Swiss National Bank increased its holdings in Tower Semiconductor by 86.0% in the 1st quarter. Swiss National Bank now owns 414,850 shares of the semiconductor company's stock worth $70,625,000 after buying an additional 191,839 shares during the period. Empowered Funds LLC purchased a new position in shares of Tower Semiconductor during the 1st quarter valued at about $754,000. Public Employees Retirement System of Ohio acquired a new position in shares of Tower Semiconductor in the 2nd quarter valued at about $2,044,000. Plato Investment Management Ltd acquired a new position in shares of Tower Semiconductor in the 2nd quarter valued at about $3,491,000. Finally, Altshuler Shaham Ltd boosted its stake in shares of Tower Semiconductor by 1,175.6% in the first quarter. Altshuler Shaham Ltd now owns 340,108 shares of the semiconductor company's stock worth $58,025,000 after buying an additional 313,445 shares during the last quarter. Institutional investors and hedge funds own 70.51% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Barclays assumed coverage on shares of Tower Semiconductor in a research note on Friday, September 18th. They issued an "overweight" rating and a $310.00 price objective for the company. Bank of America started coverage on shares of Tower Semiconductor in a report on Friday, August 7th. They issued a "buy" rating and a $367.00 price target for the company. Benchmark reaffirmed a "buy" rating on shares of Tower Semiconductor in a research report on Wednesday, August 5th. National Bank Financial upgraded shares of Tower Semiconductor to a "buy" rating in a research note on Friday, August 7th. Finally, Mizuho began coverage on shares of Tower Semiconductor in a research note on Friday, September 25th. They issued an "outperform" rating and a $300.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $316.00.

Tower Semiconductor Stock Up 2.3%

Shares of NASDAQ TSEM traded up $4.44 during trading hours on Wednesday, hitting $193.52. 1,773,949 shares of the stock were exchanged, compared to its average volume of 2,269,430. Tower Semiconductor has a 12 month low of $80.63 and a 12 month high of $319.94. The firm has a fifty day moving average price of $215.51 and a 200-day moving average price of $203.28. The company has a quick ratio of 4.31, a current ratio of 4.91 and a debt-to-equity ratio of 0.04. The company has a market cap of $21.76 billion, a PE ratio of 76.49 and a beta of 0.89.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last announced its earnings results on Tuesday, August 4th. The semiconductor company reported $0.88 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.12. Tower Semiconductor had a net margin of 16.94% and a return on equity of 9.83%. The company had revenue of $460.08 million during the quarter, compared to the consensus estimate of $454.68 million. During the same period last year, the firm earned $0.41 earnings per share. Tower Semiconductor's revenue was up 23.7% compared to the same quarter last year. On average, sell-side analysts expect that Tower Semiconductor will post 3.56 EPS for the current year.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd. is an Israeli specialty semiconductor foundry that manufactures integrated circuits for fabless semiconductor companies, integrated device manufacturers and system companies. The company provides process technologies and production services rather than selling branded end-user electronics.

Its offerings include analog and mixed-signal technologies, radio-frequency and high-voltage circuits, power management solutions, image sensors, and specialty memory products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.