Photronics (NASDAQ:PLAB) Shares Gap Up on Strong Earnings

Key Points

• Photronics, Inc. reported a strong quarterly earnings result, with earnings per share of $0.51, surpassing analysts' estimates of $0.39.
• Following the earnings announcement, shares of Photronics gapped up, opening at $23.48 compared to the previous close of $22.27.
• Institutional investors have increased their stakes in Photronics, with Vanguard Group raising its position by 0.7%, now owning over 5.9 million shares of the company.

Shares of Photronics, Inc. (NASDAQ:PLAB - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $22.27, but opened at $23.48. Photronics shares last traded at $23.55, with a volume of 633,174 shares traded.

The semiconductor company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.39 by $0.12. Photronics had a net margin of 14.00% and a return on equity of 8.54%. The company's revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.51 earnings per share. Photronics has set its Q4 2025 guidance at 0.420-0.480 EPS.

Wall Street Analyst Weigh In

Several brokerages have weighed in on PLAB. DA Davidson cut their price target on Photronics from $35.00 to $30.00 and set a "buy" rating on the stock in a report on Thursday, May 29th. Wall Street Zen cut Photronics from a "buy" rating to a "hold" rating in a research note on Friday, May 30th. Finally, Craig Hallum started coverage on Photronics in a report on Wednesday, June 11th. They issued a "buy" rating and a $32.00 price objective on the stock. Two equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Photronics presently has an average rating of "Buy" and an average price target of $31.00.

Insider Buying and Selling at Photronics

In other news, Director David A. Garcia purchased 2,650 shares of the company's stock in a transaction that occurred on Friday, June 27th. The shares were purchased at an average price of $19.00 per share, for a total transaction of $50,350.00. Following the purchase, the director directly owned 10,198 shares of the company's stock, valued at $193,762. This represents a 35.11% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Constantine S. Macricostas sold 29,500 shares of the stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $20.20, for a total value of $595,900.00. Following the sale, the director directly owned 459,623 shares of the company's stock, valued at approximately $9,284,384.60. This represents a 6.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 49,382 shares of company stock valued at $985,035 over the last three months. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of Photronics

Several institutional investors and hedge funds have recently made changes to their positions in PLAB. Vanguard Group Inc. raised its position in shares of Photronics by 0.7% in the 1st quarter. Vanguard Group Inc. now owns 5,907,219 shares of the semiconductor company's stock worth $122,634,000 after buying an additional 38,330 shares during the period. LSV Asset Management grew its position in shares of Photronics by 17.2% during the 2nd quarter. LSV Asset Management now owns 2,607,874 shares of the semiconductor company's stock valued at $49,106,000 after buying an additional 383,355 shares during the last quarter. American Century Companies Inc. lifted its stake in Photronics by 5.0% in the second quarter. American Century Companies Inc. now owns 2,306,176 shares of the semiconductor company's stock valued at $43,425,000 after buying an additional 109,909 shares during the last quarter. Geode Capital Management LLC grew its position in Photronics by 1.4% in the 2nd quarter. Geode Capital Management LLC now owns 1,888,042 shares of the semiconductor company's stock worth $35,555,000 after purchasing an additional 26,507 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Photronics by 12.1% during the first quarter. Invesco Ltd. now owns 1,258,714 shares of the semiconductor company's stock valued at $26,131,000 after purchasing an additional 135,859 shares in the last quarter. 88.38% of the stock is currently owned by hedge funds and other institutional investors.

Photronics Trading Up 5.7%

The company has a market capitalization of $1.42 billion, a price-to-earnings ratio of 12.32 and a beta of 1.40. The firm has a 50-day moving average price of $19.95 and a 200-day moving average price of $19.82.

Photronics Company Profile

Photronics, Inc, together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates.

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