MACOM Technology Solutions (NASDAQ:MTSI) Stock Falls 7.4% - Should You Sell?

Key Points

• MACOM shares fell 7.4% to about $269.90, with trading volume roughly 69% below average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $341.25; several firms recently raised targets, including Stifel to $450.
• The company reported strong quarterly results, including $1.40 EPS versus $1.35 expected and 35.8% year-over-year revenue growth. However, insiders sold 8,294 shares worth approximately $2.67 million over the past 90 days.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) shares traded down 7.4% during trading on Thursday. The company traded as low as $266.11 and last traded at $269.8950. 439,496 shares changed hands during trading, a decline of 69% from the average session volume of 1,439,483 shares. The stock had previously closed at $291.33.

Analyst Ratings Changes

Several research analysts have weighed in on MTSI shares. BMO Capital Markets upgraded shares of MACOM Technology Solutions from a "market perform" rating to an "outperform" rating and set a $335.00 price objective on the stock in a research note on Friday, September 18th. Needham & Company LLC lifted 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. Zacks Research raised shares of MACOM Technology Solutions from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 24th. Weiss Ratings cut shares of MACOM Technology Solutions from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, August 21st. Finally, Stifel Nicolaus upped their price target on shares of MACOM Technology Solutions from $385.00 to $450.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $341.25.

MACOM Technology Solutions Price Performance

The stock has a 50 day moving average price of $286.29 and a two-hundred day moving average price of $305.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.78 and a current ratio of 2.34. The company has a market capitalization of $20.45 billion, a PE ratio of 86.03, a P/E/G ratio of 1.02 and a beta of 1.77.

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

Insiders Place Their Bets

In other news, SVP Ambra R. Roth sold 653 shares of the firm's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $300.00, for a total transaction of $195,900.00. Following the transaction, the senior vice president owned 9,184 shares in the company, valued at approximately $2,755,200. This trade represents a 6.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Robert Dennehy sold 252 shares of the company's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $275.20, for a total transaction of $69,350.40. Following the completion of the sale, the chief operating officer 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,294 shares of company stock valued at $2,674,656 over the last ninety days. Corporate insiders own 0.36% of the company's stock.

Hedge Funds Weigh In On MACOM Technology Solutions

Institutional investors have recently bought and sold shares of the stock. GHP Investment Advisors Inc. acquired a new position in shares of MACOM Technology Solutions during the first quarter worth approximately $31,000. Burkett Financial Services LLC bought a new stake in MACOM Technology Solutions in the 3rd quarter valued at $38,000. Mather Group LLC. boosted its holdings in MACOM Technology Solutions by 41.0% in the 3rd quarter. Mather Group LLC. now owns 141 shares of the semiconductor company's stock valued at $40,000 after purchasing an additional 41 shares during the period. Bell Investment Advisors Inc acquired a new stake in MACOM Technology Solutions in the 2nd quarter worth $49,000. Finally, Summit Securities Group LLC acquired a new stake in MACOM Technology Solutions in the 1st quarter worth $55,000. 76.14% of the stock is currently owned by institutional investors.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions Holdings, Inc NASDAQ: MTSI is a semiconductor company that designs and manufactures high-performance products for telecommunications, data center, industrial, aerospace and defense applications. Its technologies support the generation, transmission, reception and processing of high-frequency signals across radio frequency, microwave, millimeter-wave and optical systems.

The company's product portfolio includes amplifiers, switches, diodes, mixers, modulators, filters, integrated circuits and other components used in wireless infrastructure, optical networks, satellite communications, radar, electronic warfare and test and measurement equipment.

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