Photronics (NASDAQ:PLAB) Trading 4.5% Higher - Here's Why

Key Points

• Photronics, Inc. (NASDAQ:PLAB) shares increased by 4.5% to $20.61 after trading as high as $20.47, with a significant drop in trading volume, down 80% from average levels.
• Analysts have mixed views on Photronics, with DA Davidson lowering its price target from $35 to $30, while Craig Hallum set a buy rating with a target price of $32.
• The company reported quarterly earnings of $0.40 per share, missing estimates, and had a year-over-year revenue decline of 2.8%, prompting analysts to predict 2.3 earnings per share for the current fiscal year.

Photronics, Inc. (NASDAQ:PLAB - Get Free Report) traded up 4.5% during mid-day trading on Monday . The company traded as high as $20.47 and last traded at $20.61. 125,021 shares were traded during trading, a decline of 80% from the average session volume of 624,402 shares. The stock had previously closed at $19.72.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. DA Davidson decreased their price objective on shares of Photronics from $35.00 to $30.00 and set a "buy" rating for the company in a report on Thursday, May 29th. Craig Hallum began coverage on shares of Photronics in a report on Wednesday, June 11th. They set a "buy" rating and a $32.00 price objective for the company. Finally, Wall Street Zen lowered Photronics from a "buy" rating to a "hold" rating in a research report on Friday, May 30th.

Photronics Price Performance

The company has a market cap of $1.19 billion, a price-to-earnings ratio of 10.31 and a beta of 1.40. The stock has a 50-day moving average price of $19.06 and a 200 day moving average price of $20.16.

Photronics (NASDAQ:PLAB - Get Free Report) last announced its earnings results on Wednesday, May 28th. The semiconductor company reported $0.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.48 by ($0.08). The firm had revenue of $210.99 million during the quarter, compared to analyst estimates of $212.00 million. Photronics had a net margin of 14.00% and a return on equity of 8.54%. The firm's quarterly revenue was down 2.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.46 EPS. Sell-side analysts expect that Photronics, Inc. will post 2.3 EPS for the current fiscal year.

Insider Buying and Selling at Photronics

In related news, Director Kang Jyh Lee sold 4,882 shares of the business's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $18.35, for a total transaction of $89,584.70. Following the transaction, the director directly owned 532,100 shares in the company, valued at approximately $9,764,035. The trade was a 0.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David A. Garcia bought 2,650 shares of Photronics stock in a transaction dated Friday, June 27th. The shares were acquired at an average price of $19.00 per share, with a total value of $50,350.00. Following the completion of the purchase, the director directly owned 10,198 shares in the company, valued at $193,762. This trade represents a 35.11% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have sold 49,382 shares of company stock valued at $985,035. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On Photronics

Institutional investors and hedge funds have recently modified their holdings of the stock. Byrne Asset Management LLC acquired a new position in shares of Photronics in the second quarter valued at $40,000. Federated Hermes Inc. bought a new stake in Photronics in the 4th quarter valued at $47,000. Menard Financial Group LLC bought a new stake in Photronics in the 4th quarter valued at $66,000. State of Wyoming bought a new stake in Photronics in the 1st quarter valued at $98,000. Finally, Canada Pension Plan Investment Board bought a new stake in Photronics in the 4th quarter valued at $101,000. 88.38% of the stock is currently owned by institutional investors and hedge funds.

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.