Cohu (NASDAQ:COHU) Stock Jumps 12.6% - Should You Buy?

Key Points

• Cohu shares surged 12.6% to $43.34, though trading volume was 83% below its average daily volume.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $72.50; recent targets range from $60 to $90, while one firm downgraded the stock to Hold.
• Cohu beat quarterly earnings and revenue estimates, reporting EPS of $0.43 versus $0.35 expected and 37% year-over-year revenue growth.

Cohu, Inc. (NASDAQ:COHU - Get Free Report) shares rose 12.6% on Monday. The stock traded as high as $43.25 and last traded at $43.3350. Approximately 189,178 shares were traded during trading, a decline of 83% from the average daily volume of 1,138,555 shares. The stock had previously closed at $38.49.

Analysts Set New Price Targets

COHU has been the topic of several research reports. Jefferies Financial Group restated a "buy" rating and issued a $90.00 target price on shares of Cohu in a report on Thursday, October 29th. Craig Hallum reissued a "buy" rating and set a $74.00 price target on shares of Cohu in a report on Friday, July 31st. Needham & Company LLC restated a "buy" rating and issued a $65.00 price target on shares of Cohu in a research note on Thursday, October 29th. B. Riley Financial lowered their price objective on shares of Cohu from $75.00 to $60.00 and set a "buy" rating on the stock in a research note on Monday. Finally, Zacks Research downgraded shares of Cohu from a "strong-buy" rating to a "hold" rating in a report on Friday, August 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Cohu has a consensus rating of "Moderate Buy" and an average target price of $72.50.

Cohu Stock Up 11.5%

The company has a market capitalization of $2.03 billion, a PE ratio of -82.50 and a beta of 1.60. The company's fifty day moving average is $56.11 and its 200-day moving average is $47.31. The company has a debt-to-equity ratio of 0.36, a quick ratio of 4.24 and a current ratio of 5.16.

Cohu (NASDAQ:COHU - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.35 by $0.08. Cohu had a negative net margin of 3.97% and a positive return on equity of 1.47%. The business had revenue of $172.96 million during the quarter, compared to analyst estimates of $170.25 million. During the same period in the prior year, the business posted ($0.06) earnings per share. The company's revenue was up 37.0% on a year-over-year basis. As a group, analysts predict that Cohu, Inc. will post 0.63 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cohu news, insider Christopher Bohrson sold 1,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $55.31, for a total transaction of $55,310.00. Following the completion of the sale, the insider directly owned 157,702 shares of the company's stock, valued at $8,722,497.62. This trade represents a 0.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Luis A. Muller sold 21,662 shares of the business's stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $73.00, for a total value of $1,581,326.00. Following the completion of the sale, the chief executive officer owned 822,927 shares in the company, valued at $60,073,671. This represents a 2.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 116,692 shares of company stock valued at $7,374,716 in the last quarter. 3.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cohu

Large investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Cohu during the second quarter valued at approximately $545,932,000. The Manufacturers Life Insurance Company bought a new position in Cohu in the second quarter worth approximately $77,814,000. Segall Bryant & Hamill LLC raised its stake in Cohu by 125.5% in the first quarter. Segall Bryant & Hamill LLC now owns 955,344 shares of the semiconductor company's stock worth $29,253,000 after buying an additional 531,661 shares in the last quarter. Royce & Associates LP lifted its holdings in Cohu by 1.6% during the third quarter. Royce & Associates LP now owns 953,463 shares of the semiconductor company's stock worth $64,969,000 after buying an additional 15,433 shares during the period. Finally, Emerald Advisers LLC purchased a new stake in Cohu during the first quarter worth $23,887,000. Institutional investors own 94.67% of the company's stock.

Cohu Company Profile

Cohu, Inc designs and manufactures equipment and components used to test, inspect, and handle semiconductors. Its products include semiconductor test handlers, inspection systems, test contactors, and thermal subsystems that support testing at various stages of chip production.

The company serves semiconductor manufacturers and outsourced semiconductor assembly and test providers around the world. Its equipment is used across a range of semiconductor applications, including devices for automotive, industrial, communications, and consumer markets.

Founded in 1947, Cohu has expanded its semiconductor equipment business through organic development and acquisitions.

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