MACOM Technology Solutions (NASDAQ:MTSI) Shares Down 9.4% - What's Next?

Key Points

• MACOM shares fell 9.4% to approximately $248.93, with trading volume down 90% from its average session. The stock remains below its 50-day and 200-day moving averages.
• Despite the decline, analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $341.25—well above the current price.
• The company recently exceeded quarterly expectations, reporting $1.40 in EPS and $342.24 million in revenue, while revenue increased 35.8% year over year. Insiders have sold shares recently, but institutional investors own 76.14% of the stock.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report)'s share price fell 9.4% during trading on Monday . The stock traded as low as $244.94 and last traded at $248.9290. Approximately 147,242 shares traded hands during trading, a decline of 90% from the average session volume of 1,438,251 shares. The stock had previously closed at $274.90.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. HC Wainwright reiterated a "buy" rating on shares of MACOM Technology Solutions in a report on Wednesday, June 3rd. Weiss Ratings cut shares of MACOM Technology Solutions from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, August 21st. Benchmark started coverage on shares of MACOM Technology Solutions in a research note on Thursday, August 13th. They set a "buy" rating and a $375.00 price objective on the stock. Zacks Research upgraded MACOM Technology Solutions from a "hold" rating to a "strong-buy" rating in a report on Monday, August 24th. Finally, BMO Capital Markets started coverage on MACOM Technology Solutions in a research report on Friday, August 21st. They set a "market perform" rating and a $335.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $341.25.

MACOM Technology Solutions Stock Down 11.5%

The company has a 50-day moving average of $280.19 and a 200-day moving average of $295.66. The company has a current ratio of 2.34, a quick ratio of 1.78 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $18.59 billion, a price-to-earnings ratio of 78.13, a price-to-earnings-growth ratio of 1.52 and a beta of 1.71.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last released its earnings results on Thursday, August 6th. The semiconductor company reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.05. The company had revenue of $342.24 million for the quarter, compared to the consensus estimate of $336.08 million. MACOM Technology Solutions had a net margin of 20.70% and a return on equity of 17.82%. MACOM Technology Solutions's revenue was up 35.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.90 EPS. MACOM Technology Solutions has set its Q4 2026 guidance at 1.970-2.030 EPS. On average, equities analysts predict that MACOM Technology Solutions Holdings, Inc. will post 4.26 earnings per share for the current fiscal year.

Insider Activity at MACOM Technology Solutions

In other MACOM Technology Solutions news, COO Robert Dennehy sold 252 shares of the business's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $275.20, for a total transaction of $69,350.40. Following the sale, the chief operating officer owned 12,758 shares in the company, valued at approximately $3,511,001.60. The trade was a 1.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Donghyun Hwang sold 2,620 shares of the stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $383.87, for a total value of $1,005,739.40. Following the completion of the transaction, the senior vice president directly owned 29,756 shares in the company, valued at $11,422,435.72. This represents a 8.09% 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 10,261 shares of company stock valued at $3,484,495 in the last ninety days. Company insiders own 0.36% of the company's stock.

Institutional Investors Weigh In On MACOM Technology Solutions

Large investors have recently bought and sold shares of the company. Swedbank AB purchased a new position in shares of MACOM Technology Solutions during the first quarter worth $13,059,000. Principal Financial Group Inc. raised its stake in shares of MACOM Technology Solutions by 41.7% during the 1st quarter. Principal Financial Group Inc. now owns 195,148 shares of the semiconductor company's stock valued at $43,337,000 after buying an additional 57,474 shares during the last quarter. Azzad Asset Management Inc. ADV lifted its holdings in shares of MACOM Technology Solutions by 94.4% in the 1st quarter. Azzad Asset Management Inc. ADV now owns 20,113 shares of the semiconductor company's stock valued at $4,466,000 after buying an additional 9,767 shares during the period. Fifth Third Bancorp boosted its stake in shares of MACOM Technology Solutions by 2,385.6% in the first quarter. Fifth Third Bancorp now owns 18,468 shares of the semiconductor company's stock worth $4,101,000 after buying an additional 17,725 shares during the last quarter. Finally, Hsbc Holdings PLC grew its holdings in MACOM Technology Solutions by 5,004.6% during the fourth quarter. Hsbc Holdings PLC now owns 102,909 shares of the semiconductor company's stock worth $17,796,000 after acquiring an additional 100,893 shares during the period. Hedge funds and other institutional investors own 76.14% of the company's stock.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions Holdings, Inc NASDAQ: MTSI develops and manufactures high-performance semiconductor products for communications, aerospace and defense, industrial, and test and measurement applications. The company's technologies are designed to support the transmission, processing, and control of high-frequency signals across a range of electronic systems.

Its product portfolio includes radio-frequency, microwave, and millimeter-wave components; analog and mixed-signal devices; compound semiconductor products; and optical components used in communications infrastructure and data-center networks.

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