MACOM Technology Solutions (NASDAQ:MTSI) Shares Gap Up - What's Next?

Key Points

• MACOM shares jumped 4.6%, opening at $272.58 versus a prior close of $263.14 and trading near $274.44.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $341.25; recent targets range as high as $450.
• The company exceeded quarterly expectations, reporting $1.40 in EPS and $342.24 million in revenue, while revenue rose 35.8% year over year. Insiders have sold $3.48 million of stock over the past three months, and institutional investors own 76.14% of shares.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $263.14, but opened at $272.58. MACOM Technology Solutions shares last traded at $274.44, with a volume of 339,855 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have commented on MTSI shares. Benchmark began coverage on shares of MACOM Technology Solutions in a research report on Thursday, August 13th. They set a "buy" rating and a $375.00 price objective for the company. Weiss Ratings downgraded MACOM Technology Solutions from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, August 21st. Zacks Research upgraded shares of MACOM Technology Solutions from a "hold" rating to a "strong-buy" rating in a report on Monday, August 24th. Barclays raised their price objective on MACOM Technology Solutions from $400.00 to $450.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. Finally, Needham & Company LLC raised their target price on shares of MACOM Technology Solutions from $400.00 to $410.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $341.25.

MACOM Technology Solutions Stock Up 4.6%

The company has a quick ratio of 1.78, a current ratio of 2.34 and a debt-to-equity ratio of 0.04. The stock's 50-day simple moving average is $274.98 and its 200 day simple moving average is $295.64. The firm has a market cap of $21.02 billion, a P/E ratio of 88.49, a PEG ratio of 1.39 and a beta of 1.71.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.35 by $0.05. The business had revenue of $342.24 million for the quarter, compared to analyst estimates of $336.08 million. MACOM Technology Solutions had a net margin of 20.70% and a return on equity of 17.82%. The company's revenue for the quarter was up 35.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.90 earnings per share. MACOM Technology Solutions has set its Q4 2026 guidance at 1.970-2.030 EPS. As a group, research analysts forecast that MACOM Technology Solutions Holdings, Inc. will post 4.26 EPS 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 company's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $275.20, for a total transaction of $69,350.40. Following the sale, the chief operating officer directly owned 12,758 shares of the company's stock, valued at $3,511,001.60. This represents a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 stock was sold at an average price of $383.87, for a total transaction of $1,005,739.40. Following the transaction, the senior vice president owned 29,756 shares of the company's stock, valued at $11,422,435.72. This represents a 8.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 10,261 shares of company stock worth $3,484,495. Company insiders own 0.36% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Sequoia Financial Advisors LLC grew its holdings in shares of MACOM Technology Solutions by 5.4% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 2,073 shares of the semiconductor company's stock valued at $789,000 after purchasing an additional 107 shares during the last quarter. Tidal Investments LLC lifted its stake in MACOM Technology Solutions by 21.3% in the second quarter. Tidal Investments LLC now owns 15,986 shares of the semiconductor company's stock worth $6,081,000 after acquiring an additional 2,803 shares during the period. Engineers Gate Manager LP purchased a new position in shares of MACOM Technology Solutions during the second quarter valued at about $1,684,000. Integrated Wealth Concepts LLC bought a new stake in MACOM Technology Solutions during the 2nd quarter valued at approximately $710,000. Finally, NewEdge Advisors LLC boosted its position in shares of MACOM Technology Solutions by 147.3% during the second quarter. NewEdge Advisors LLC now owns 3,368 shares of the semiconductor company's stock valued at $1,281,000 after purchasing an additional 2,006 shares in the last quarter. Hedge funds and other institutional investors own 76.14% of the company's stock.

About MACOM Technology Solutions

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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