PDF Solutions (NASDAQ:PDFS) Shares Gap Down - Here's Why

Key Points

• PDF Solutions' stock price dropped significantly, opening at $21.05 after closing at $22.18, with the last trade recorded at $18.87.
• DA Davidson has initiated coverage with a "neutral" rating and a target of $24.00, while other analysts have varying ratings from "buy" to "hold".
• Insider activity shows strong confidence, with Director Michael B. Gustafson purchasing 7,500 shares at an average price of $19.45, increasing his ownership significantly.

PDF Solutions, Inc. (NASDAQ:PDFS - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $22.18, but opened at $21.05. PDF Solutions shares last traded at $18.87, with a volume of 165,269 shares traded.

Analysts Set New Price Targets

A number of analysts recently commented on PDFS shares. DA Davidson downgraded shares of PDF Solutions from a "strong-buy" rating to a "hold" rating and set a $24.00 target price on the stock. in a report on Friday. Rosenblatt Securities reiterated a "buy" rating and issued a $31.00 target price on shares of PDF Solutions in a report on Tuesday, August 5th. Finally, Wall Street Zen lowered shares of PDF Solutions from a "buy" rating to a "hold" rating in a report on Saturday, July 26th.

PDF Solutions Price Performance

The stock's fifty day moving average price is $21.71 and its 200-day moving average price is $21.28. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.19 and a quick ratio of 2.19. The firm has a market cap of $772.23 million, a price-to-earnings ratio of 986.99 and a beta of 1.40.

Insiders Place Their Bets

In related news, Director Michael B. Gustafson acquired 7,500 shares of the company's stock in a transaction on Tuesday, May 13th. The shares were purchased at an average price of $19.45 per share, for a total transaction of $145,875.00. Following the purchase, the director owned 30,074 shares in the company, valued at $584,939.30. This represents a 33.22% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 11.09% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in PDFS. Nuveen LLC acquired a new position in PDF Solutions in the 1st quarter valued at approximately $2,628,000. Acadian Asset Management LLC grew its position in PDF Solutions by 328.7% in the first quarter. Acadian Asset Management LLC now owns 169,068 shares of the technology company's stock worth $3,221,000 after acquiring an additional 129,629 shares in the last quarter. Herald Investment Management Ltd grew its position in PDF Solutions by 166.7% in the first quarter. Herald Investment Management Ltd now owns 200,000 shares of the technology company's stock worth $3,822,000 after acquiring an additional 125,000 shares in the last quarter. Penn Capital Management Company LLC bought a new stake in PDF Solutions in the first quarter worth approximately $2,076,000. Finally, Connor Clark & Lunn Investment Management Ltd. grew its position in PDF Solutions by 68.4% in the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 250,159 shares of the technology company's stock worth $4,781,000 after acquiring an additional 101,587 shares in the last quarter. Institutional investors and hedge funds own 79.51% of the company's stock.

PDF Solutions Company Profile

PDF Solutions, Inc provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle.