MACOM Technology Solutions (NASDAQ:MTSI) Stock Falls 8.3% - What's Next?

Key Points

• MACOM shares fell 8.3% to approximately $250.26, with trading volume down 88% versus the average daily level. The stock is now 15.9% below its recent level referenced in the article.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $341.25, implying substantial upside from the trading price.
• The company recently exceeded quarterly expectations, reporting $1.40 in EPS and $342.24 million in revenue, with revenue up 35.8% year over year. Insiders have sold $2.67 million of stock over the past 90 days, while institutional investors own 76.14% of shares.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report)'s share price was down 8.3% during trading on Thursday. The company traded as low as $249.99 and last traded at $250.2570. 178,894 shares were traded during trading, a decline of 88% from the average daily volume of 1,442,281 shares. The stock had previously closed at $273.05.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Benchmark assumed 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 target for the company. Susquehanna lowered their price objective on shares of MACOM Technology Solutions from $350.00 to $300.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 21st. BMO Capital Markets upgraded shares of MACOM Technology Solutions from a "market perform" rating to an "outperform" rating and set a $335.00 target price on the stock in a research note on Friday, September 18th. Zacks Research raised shares of MACOM Technology Solutions from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 24th. Finally, Stifel Nicolaus raised 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 assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, MACOM Technology Solutions has a consensus rating of "Moderate Buy" and a consensus price target of $341.25.

MACOM Technology Solutions Stock Down 15.9%

The company has a market cap of $17.54 billion, a P/E ratio of 73.87, a price-to-earnings-growth ratio of 0.87 and a beta of 1.77. The company has a 50 day moving average of $282.61 and a 200-day moving average of $307.03. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.34 and a quick ratio of 1.78.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $1.40 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 20.70% and a return on equity of 17.82%. The business's quarterly revenue was up 35.8% compared to the same quarter last year. During the same quarter in the previous year, the company 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 year.

Insider Buying and Selling at MACOM Technology Solutions

In related news, COO Robert Dennehy sold 252 shares of the business'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 owned 12,758 shares of the company's stock, valued at $3,511,001.60. The trade was a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ambra R. Roth sold 653 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $300.00, for a total value of $195,900.00. Following the completion of the sale, the senior vice president directly owned 9,184 shares in the company, valued at approximately $2,755,200. This represents a 6.64% 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. In the last ninety days, insiders have sold 8,294 shares of company stock valued at $2,674,656. 0.36% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MACOM Technology Solutions

Several large investors have recently bought and sold shares of MTSI. Versant Capital Management Inc lifted its stake in shares of MACOM Technology Solutions by 11.0% in the 2nd quarter. Versant Capital Management Inc now owns 342 shares of the semiconductor company's stock worth $130,000 after purchasing an additional 34 shares during the period. Mather Group LLC. raised 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 worth $40,000 after purchasing an additional 41 shares during the period. Wedmont Private Capital lifted its position in MACOM Technology Solutions by 1.9% during the third quarter. Wedmont Private Capital now owns 2,614 shares of the semiconductor company's stock valued at $745,000 after purchasing an additional 48 shares in the last quarter. SBI Securities Co. Ltd. grew its holdings in MACOM Technology Solutions by 14.5% during the third quarter. SBI Securities Co. Ltd. now owns 394 shares of the semiconductor company's stock valued at $112,000 after purchasing an additional 50 shares during the period. Finally, Pacer Advisors Inc. grew its holdings in MACOM Technology Solutions by 0.4% during the first quarter. Pacer Advisors Inc. now owns 12,035 shares of the semiconductor company's stock valued at $2,673,000 after purchasing an additional 51 shares during the period. 76.14% of the stock is currently owned by institutional investors.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions Holdings, Inc develops and manufactures high-performance semiconductor products for applications involving radio frequency, microwave, millimeter-wave, analog, mixed-signal and optical technologies. Its offerings include integrated circuits, discrete components, modules and semiconductor devices designed to support communications, connectivity and sensing systems.

The company serves markets including telecommunications, data centers, aerospace and defense, industrial, automotive and consumer applications.

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