Cohu (NASDAQ:COHU) Trading Down 4.8% - What's Next?

Key Points

• Cohu shares fell 4.8% to approximately $43.54 in mid-day trading, on unusually light volume that was 94% below the daily average.
• Analysts remain broadly optimistic, with an average “Moderate Buy” rating and a $68.75 price target; several firms recently raised their targets to between $65 and $80.
• Cohu exceeded quarterly expectations, reporting EPS of $0.26 versus $0.14 expected and revenue of $149 million, up 38.3% year over year. Insiders sold $1.63 million of stock over the last quarter, while institutional investors own 94.67% of shares.

Cohu, Inc. (NASDAQ:COHU - Get Free Report) shares were down 4.8% during mid-day trading on Thursday . The company traded as low as $43.37 and last traded at $43.5360. Approximately 69,540 shares were traded during trading, a decline of 94% from the average daily volume of 1,117,290 shares. The stock had previously closed at $45.75.

Analysts Set New Price Targets

Several equities research analysts recently commented on COHU shares. Needham & Company LLC upped their target price on Cohu from $54.00 to $65.00 and gave the company a "buy" rating in a research report on Friday, July 31st. B. Riley Financial boosted their price target on Cohu from $65.00 to $69.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Jefferies Financial Group restated a "buy" rating and set a $74.00 price target on shares of Cohu in a report on Friday, July 31st. Craig Hallum reaffirmed a "buy" rating and set a $74.00 price objective on shares of Cohu in a research report on Friday, July 31st. Finally, TD Cowen lifted their price objective on shares of Cohu from $60.00 to $80.00 and gave the company a "buy" rating in a research note on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $68.75.

Cohu Price Performance

The firm has a market cap of $2.16 billion, a price-to-earnings ratio of -54.92 and a beta of 1.58. The company has a debt-to-equity ratio of 0.37, a quick ratio of 4.72 and a current ratio of 5.74. The business has a 50 day simple moving average of $54.02 and a 200-day simple moving average of $46.24.

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

Insider Activity

In related news, Director Nina Richardson sold 3,055 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were 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 of the company's stock, valued at $2,014,853.22. This trade 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 M. Caggia sold 15,252 shares of the company's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $51.74, for a total transaction of $789,138.48. Following the completion of the sale, the director directly 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. 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. Insiders sold a total of 30,307 shares of company stock worth $1,630,573 over the last quarter. Insiders own 3.05% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of COHU. Assenagon Asset Management S.A. bought a new stake in Cohu in the first quarter worth about $705,000. Vanguard Group Inc. grew its position in shares of Cohu by 1.3% during the 4th quarter. Vanguard Group Inc. now owns 4,361,164 shares of the semiconductor company's stock valued at $101,484,000 after acquiring an additional 57,618 shares during the period. Mizuho Markets Americas LLC grew its position in shares of Cohu by 349.3% during the 4th quarter. Mizuho Markets Americas LLC now owns 302,838 shares of the semiconductor company's stock valued at $7,047,000 after acquiring an additional 235,438 shares during the period. Louisiana State Employees Retirement System purchased a new stake in shares of Cohu during the 1st quarter worth approximately $634,000. Finally, Leeward Investments LLC MA increased its stake in shares of Cohu by 4.0% during the 1st quarter. Leeward Investments LLC MA now owns 646,133 shares of the semiconductor company's stock worth $19,785,000 after purchasing an additional 24,755 shares during the last quarter. Hedge funds and other institutional investors own 94.67% of the company's stock.

About Cohu

Cohu, Inc is a global provider of semiconductor test and inspection solutions, offering a broad portfolio of products designed to support chip manufacturers, outsourced semiconductor assembly and test (OSAT) providers, and electronics original equipment manufacturers (OEMs). The company's product lineup includes automatic test handlers, wafer probers, test sockets, thermal subassembly systems and burn-in boards, all engineered to optimize throughput, accuracy and reliability in semiconductor production and final test.

Founded in 1947 and headquartered in Poway, California, Cohu has grown through both organic development and targeted acquisitions to become a recognized leader in test handling and interconnect technologies.

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