Cohu (NASDAQ:COHU) Shares Gap Down - Here's Why

Key Points

• Cohu shares gapped down from a prior close of $57.08 to open at $52.23, later trading near $53.49.
• Despite the decline, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $68.75; individual targets range from $65 to $74.
• Cohu exceeded quarterly expectations, reporting $0.26 in EPS versus $0.14 expected and $149 million in revenue, up 38.3% year over year. However, insiders sold 29,307 shares worth approximately $1.57 million over the past three months.

Shares of Cohu, Inc. (NASDAQ:COHU - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $57.08, but opened at $52.23. Cohu shares last traded at $53.49, with a volume of 59,426 shares.

Analysts Set New Price Targets

Several research analysts have recently issued reports on COHU shares. B. Riley Financial increased their price target on Cohu from $65.00 to $69.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cohu in a research report on Friday, July 17th. Jefferies Financial Group reissued a "buy" rating and set a $74.00 target price on shares of Cohu in a research note on Friday, July 31st. Stifel Nicolaus boosted their price target on shares of Cohu from $50.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Finally, Needham & Company LLC upped their price target on shares of Cohu from $54.00 to $65.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $68.75.

Cohu Stock Performance

The stock has a market cap of $2.48 billion, a price-to-earnings ratio of -63.07 and a beta of 1.58. The company's 50-day simple moving average is $52.18 and its 200-day simple moving average is $47.34. The company has a quick ratio of 4.72, a current ratio of 5.74 and a debt-to-equity ratio of 0.37.

Cohu (NASDAQ:COHU - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.12. The business had revenue of $149.00 million during the quarter, compared to analyst estimates of $144.20 million. Cohu had a negative return on equity of 1.96% and a negative net margin of 7.43%.The company's revenue was up 38.3% compared to the same quarter last year. During the same period last year, the company posted $0.02 EPS. Analysts predict that Cohu, Inc. will post 0.47 EPS for the current fiscal year.

Insider Buying and Selling at Cohu

In other news, Director Nina Richardson sold 3,055 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $51.54, for a total value of $157,454.70. Following the completion of the sale, the director owned 39,093 shares in the company, valued at $2,014,853.22. This represents a 7.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andrew Caggia sold 15,252 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $51.74, for a total value of $789,138.48. Following the sale, the director owned 64,778 shares of the company's stock, valued at $3,351,613.72. The trade was a 19.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 29,307 shares of company stock valued at $1,566,693 in the last three months. 3.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cohu

A number of hedge funds have recently modified their holdings of the stock. Hollencrest Capital Management acquired a new stake in Cohu during the first quarter valued at $31,000. Kestra Advisory Services LLC purchased a new stake in shares of Cohu during the 4th quarter worth about $34,000. Nykredit A S purchased a new stake in shares of Cohu during the 2nd quarter worth about $36,000. Los Angeles Capital Management LLC acquired a new stake in shares of Cohu during the 4th quarter valued at about $37,000. Finally, Smartleaf Asset Management LLC increased its holdings in Cohu by 202.7% in the second quarter. Smartleaf Asset Management LLC now owns 2,113 shares of the semiconductor company's stock worth $41,000 after buying an additional 1,415 shares during the last quarter. 94.67% of the stock is owned by institutional investors and hedge funds.

About Cohu

Cohu, Inc is a semiconductor test and inspection equipment company that develops products used throughout the semiconductor manufacturing process. Its portfolio includes semiconductor test handlers, test contactors, inspection and metrology systems, thermal-management solutions, and software for managing and analyzing test data.

The company's equipment helps semiconductor manufacturers and outsourced semiconductor assembly and test providers handle, connect, test, inspect, and characterize packaged semiconductor devices.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.