Photronics (NASDAQ:PLAB) Shares Gap Down on Disappointing Earnings

Key Points

• Photronics shares plunged after the company reported weaker-than-expected quarterly results, opening far below the prior close. The stock dropped after the earnings miss triggered a sharp gap down.
• The company posted Q2 earnings of $0.42 per share, missing the $0.53 consensus estimate, while revenue of $209.9 million also came in below forecasts. Revenue was slightly lower than the same quarter last year.
• Investors were further pressured by cautious guidance tied to delays, supply strain, and uncertainty, suggesting the recovery may take longer than expected. That outlook appears to be a major factor behind the selloff.

Photronics, Inc. (NASDAQ:PLAB - Get Free Report)'s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $53.51, but opened at $36.81. Photronics shares last traded at $35.7130, with a volume of 2,144,142 shares.

The semiconductor company reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.11). Photronics had a return on equity of 7.88% and a net margin of 15.83%.The business had revenue of $209.94 million for the quarter, compared to the consensus estimate of $216.47 million. During the same period in the prior year, the business earned $0.40 earnings per share. Photronics's revenue was down .5% compared to the same quarter last year.

Key Stories Impacting Photronics

Here are the key news stories impacting Photronics this week:

• Negative Sentiment: Photronics reported Q2 earnings of $0.42 per share, missing the $0.53 consensus estimate, while revenue of $209.9 million also came in below expectations. Photronics Reports Second Quarter 2026 Results
• Negative Sentiment: Investors were also disappointed by management’s guidance, with reports citing delays, supply strain, and uncertainty that suggest the recovery may take longer than expected. Photronics CEO Flags Delays, Supply Strain, And Uncertainty
• Neutral Sentiment: Additional coverage from earnings snapshots and market commentary largely reiterated the same story: PLAB’s results were weaker than expected, which appears to be the main catalyst behind the stock’s decline today. Photronics: Fiscal Q2 Earnings Snapshot

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on PLAB shares. Lake Street Capital reissued a "buy" rating and set a $55.00 price target on shares of Photronics in a research report on Friday, May 1st. Weiss Ratings upgraded Photronics from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, April 29th. Wall Street Zen upgraded Photronics from a "buy" rating to a "strong-buy" rating in a research note on Saturday, March 14th. Craig Hallum reiterated a "buy" rating and set a $48.00 price objective on shares of Photronics in a research note on Tuesday, March 3rd. Finally, Zacks Research cut shares of Photronics from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $49.33.

Insider Transactions at Photronics

In other news, CEO George Macricostas sold 121,194 shares of the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $42.94, for a total value of $5,204,070.36. Following the transaction, the chief executive officer directly owned 334,068 shares of the company's stock, valued at $14,344,879.92. This represents a 26.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Eric Rivera sold 41,517 shares of the firm's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $44.00, for a total transaction of $1,826,748.00. Following the sale, the chief financial officer owned 136,173 shares of the company's stock, valued at approximately $5,991,612. This represents a 23.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 346,144 shares of company stock valued at $15,061,759. Corporate insiders own 3.30% of the company's stock.

Institutional Investors Weigh In On Photronics

A number of institutional investors have recently made changes to their positions in PLAB. Torren Management LLC bought a new position in shares of Photronics during the fourth quarter worth approximately $26,000. Larson Financial Group LLC acquired a new stake in Photronics during the 3rd quarter worth approximately $28,000. First Horizon Corp bought a new stake in Photronics in the 1st quarter valued at $33,000. Hantz Financial Services Inc. grew its holdings in Photronics by 673.4% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,485 shares of the semiconductor company's stock valued at $34,000 after buying an additional 1,293 shares in the last quarter. Finally, Quarry LP grew its holdings in Photronics by 569.8% in the 4th quarter. Quarry LP now owns 1,353 shares of the semiconductor company's stock valued at $43,000 after buying an additional 1,151 shares in the last quarter. Institutional investors own 88.38% of the company's stock.

Photronics Trading Down 34.5%

The stock has a market cap of $2.07 billion, a P/E ratio of 14.98 and a beta of 1.51. The firm has a 50-day simple moving average of $46.28 and a two-hundred day simple moving average of $37.11.

About Photronics

Photronics, Inc is a leading global supplier of photomask products used in the manufacture of integrated circuits, flat panel displays, microelectromechanical systems (MEMS), and advanced packaging applications. Photomasks, also known as reticles, are critical templates that carry the precise circuit patterns required for semiconductor lithography processes. The company offers a comprehensive range of mask solutions, including binary masks, attenuated phase-shift masks, reticles for micro-optics, and specialized products for high‐resolution applications.

Founded in 1969 and headquartered in Brookfield, Connecticut, Photronics has grown through organic expansion and strategic investments in high‐end lithography technology.

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