Photronics (NASDAQ:PLAB) Trading Down 7.9% - What's Next?

Key Points

• Photronics shares fell 7.9% on Friday, dropping to as low as $30.70 and trading well below the prior close of $32.85 on lighter-than-normal volume.
• Recent analyst sentiment has softened, with multiple firms cutting ratings to Hold; the current consensus is still Moderate Buy, with a price target of $49.33.
• The company’s latest earnings missed expectations, posting $0.42 EPS versus the $0.53 estimate, while revenue also came in below forecasts and declined slightly year over year.

Shares of Photronics, Inc. (NASDAQ:PLAB - Get Free Report) dropped 7.9% during trading on Friday . The stock traded as low as $30.70 and last traded at $30.2560. 305,259 shares traded hands during trading, a decline of 76% from the average daily volume of 1,266,477 shares. The stock had previously closed at $32.85.

Analyst Ratings Changes

Several brokerages have recently weighed in on PLAB. Wall Street Zen downgraded shares of Photronics from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Zacks Research cut shares of Photronics from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 13th. Weiss Ratings upgraded Photronics from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, April 29th. Lake Street Capital reaffirmed a "buy" rating and set a $55.00 target price on shares of Photronics in a research report on Friday, May 1st. Finally, Craig Hallum reiterated a "buy" rating on shares of Photronics in a research note on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $49.33.

Photronics Stock Down 7.4%

The firm has a 50-day moving average of $42.56 and a two-hundred day moving average of $38.52. The stock has a market capitalization of $1.79 billion, a price-to-earnings ratio of 11.13 and a beta of 1.37.

Photronics (NASDAQ:PLAB - Get Free Report) last released its earnings results on Thursday, May 28th. The semiconductor company reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.53 by ($0.11). The firm had revenue of $209.94 million for the quarter, compared to analyst estimates of $216.47 million. Photronics had a return on equity of 7.69% and a net margin of 18.47%.The firm's revenue was down .5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.40 EPS. Photronics has set its Q3 2026 guidance at 0.390-0.450 EPS.

Insider Transactions at Photronics

In other news, Director Kang Jyh Lee sold 20,000 shares of the company's stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $45.92, for a total transaction of $918,400.00. Following the transaction, the director owned 355,850 shares of the company's stock, valued at $16,340,632. This represents a 5.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Rui Zhang sold 4,556 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $46.70, for a total transaction of $212,765.20. Following the completion of the transaction, the chief accounting officer directly owned 27,079 shares in the company, valued at approximately $1,264,589.30. The trade was a 14.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 326,144 shares of company stock worth $14,313,759. Corporate insiders own 3.30% of the company's stock.

Institutional Investors Weigh In On Photronics

Hedge funds and other institutional investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its position in Photronics by 30.1% during the 1st quarter. Royal Bank of Canada now owns 219,290 shares of the semiconductor company's stock worth $4,553,000 after buying an additional 50,707 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Photronics by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 36,647 shares of the semiconductor company's stock valued at $761,000 after acquiring an additional 1,600 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Photronics by 14.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 96,752 shares of the semiconductor company's stock worth $2,009,000 after acquiring an additional 12,159 shares in the last quarter. Intech Investment Management LLC boosted its position in Photronics by 6.0% during the first quarter. Intech Investment Management LLC now owns 62,441 shares of the semiconductor company's stock valued at $1,296,000 after purchasing an additional 3,526 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its position in Photronics by 21.5% during the second quarter. JPMorgan Chase & Co. now owns 273,646 shares of the semiconductor company's stock valued at $5,153,000 after purchasing an additional 48,342 shares during the last quarter. Institutional investors and hedge funds own 88.38% of the company's stock.

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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