Cohu (NASDAQ:COHU) Stock Breaks Above 200-Day Moving Average - Should You Sell?

Key Points

• Cohu shares crossed above their 200-day moving average, reaching $66.42 and last trading at $65.21 versus the $52.46 average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $68.75; recent targets range as high as $80.
• Cohu reported better-than-expected quarterly results, including $0.26 EPS versus $0.14 expected and 38.3% year-over-year revenue growth, though the company remains unprofitable and insiders have sold shares recently.

Cohu, Inc. (NASDAQ:COHU - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $52.46 and traded as high as $66.42. Cohu shares last traded at $65.21, with a volume of 994,319 shares trading hands.

Analyst Ratings Changes

COHU has been the topic of several research analyst reports. TD Cowen lifted their target price on shares of Cohu from $60.00 to $80.00 and gave the company a "buy" rating in a research report on Tuesday, June 16th. Zacks Research cut Cohu from a "strong-buy" rating to a "hold" rating in a report on Friday, August 28th. Needham & Company LLC boosted their target price on shares of Cohu from $54.00 to $65.00 and gave the company a "buy" rating in a report on Friday, July 31st. Jefferies Financial Group reissued a "buy" rating and issued a $74.00 price target on shares of Cohu in a research note on Friday, July 31st. Finally, Stifel Nicolaus increased their price target on shares of Cohu from $50.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $68.75.

Cohu Trading Down 4.4%

The company has a market cap of $3.09 billion, a PE ratio of -78.57 and a beta of 1.51. The company's 50 day simple moving average is $57.52 and its two-hundred day simple moving average is $52.46. The company has a debt-to-equity ratio of 0.37, a current ratio of 5.74 and a quick ratio of 4.72.

Cohu (NASDAQ:COHU - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.12. Cohu had a negative net margin of 7.43% and a negative return on equity of 1.96%. The business had revenue of $149.00 million for the quarter, compared to the consensus estimate of $144.20 million. During the same period in the previous year, the firm earned $0.02 EPS. The business's revenue was up 38.3% on a year-over-year basis. As a group, sell-side analysts anticipate that Cohu, Inc. will post 0.47 EPS for the current fiscal year.

Insider Transactions at Cohu

In other Cohu news, Director Nina Richardson sold 3,055 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $51.54, for a total transaction of $157,454.70. Following the transaction, the director directly 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 the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher Bohrson sold 10,000 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $55.82, for a total value of $558,200.00. Following the transaction, the senior vice president owned 159,702 shares of the company's stock, valued at approximately $8,914,565.64. This represents a 5.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 133,999 shares of company stock worth $8,265,999 in the last ninety days. 3.05% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cohu

Hedge funds have recently bought and sold shares of the company. Hollencrest Capital Management acquired a new stake in shares of Cohu during the first quarter worth about $31,000. CoreCap Advisors LLC boosted its stake in shares of Cohu by 150.0% in the third quarter. CoreCap Advisors LLC now owns 500 shares of the semiconductor company's stock valued at $34,000 after purchasing an additional 300 shares during the period. Nykredit A S purchased a new position in shares of Cohu in the second quarter valued at approximately $36,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Cohu in the second quarter valued at approximately $48,000. Finally, Allworth Financial LP acquired a new position in shares of Cohu in the second quarter valued at approximately $65,000. Institutional investors and hedge funds own 94.67% of the company's stock.

About Cohu

Cohu, Inc provides semiconductor test and inspection equipment, consumables and related services used by semiconductor manufacturers and outsourced semiconductor assembly and test providers. Its solutions support the testing and handling of integrated circuits throughout the manufacturing process, helping customers evaluate device performance, reliability and quality.

The company's product portfolio includes semiconductor test handlers, inspection and metrology systems, thermal-management equipment, test contactors and other interface products.

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