MACOM Technology Solutions (NASDAQ:MTSI) Stock Price Down 19.2% After Analyst Downgrade

Key Points

• MACOM shares fell 19.2% after Needham cut its price target from $410 to $300, while maintaining a Buy rating.
• Fiscal Q4 results beat estimates: adjusted EPS was $2.09 versus $2.00 expected, and revenue reached $424.82 million, up 62.6% year over year.
• Despite the decline, analysts’ consensus rating remained Moderate Buy, with an average price target of $329.62.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report)'s stock price was down 19.2% during trading on Thursday after Needham & Company LLC lowered their price target on the stock from $410.00 to $300.00. Needham & Company LLC currently has a buy rating on the stock. MACOM Technology Solutions traded as low as $189.24 and last traded at $188.2620. Approximately 1,112,786 shares were traded during mid-day trading, a decline of 24% from the average session volume of 1,468,532 shares. The stock had previously closed at $233.13.

MTSI has been the topic of several other research reports. Benchmark initiated coverage on MACOM Technology Solutions in a research report on Thursday, August 13th. They set a "buy" rating and a $375.00 target price on the stock. Raymond James Financial raised MACOM Technology Solutions from a "market perform" rating to an "outperform" rating and set a $300.00 price target for the company in a report on Tuesday, October 27th. Susquehanna decreased their price target on MACOM Technology Solutions from $350.00 to $300.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 21st. Weiss Ratings lowered MACOM Technology Solutions from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, August 21st. Finally, Wall Street Zen upgraded MACOM Technology Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, MACOM Technology Solutions presently has a consensus rating of "Moderate Buy" and an average target price of $329.62.

Insiders Place Their Bets

In other news, COO Robert Dennehy sold 252 shares of the business's stock in a transaction that occurred 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 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Ambra R. Roth sold 653 shares of the company's stock in a transaction that occurred 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 owned 9,184 shares in the company, valued at approximately $2,755,200. This represents a 6.64% decrease in their position. 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. Over the last three months, insiders have sold 9,321 shares of company stock worth $2,917,644. 0.36% of the stock is owned by company insiders.

Trending Headlines about MACOM Technology Solutions

Here are the key news stories impacting MACOM Technology Solutions this week:

• Positive Sentiment: Fiscal Q4 adjusted earnings were $2.09 per share versus the $2.00 consensus estimate, while revenue of $424.82 million exceeded the $420.35 million estimate and increased 62.6% from a year earlier. Zacks earnings report
• Neutral Sentiment: MACOM also provided fiscal Q1 guidance, but the supplied report details do not include the outlook figures, making it difficult to assess how they compared with expectations. Fiscal Q4 results and Q1 guidance
• Negative Sentiment: Despite the earnings beat, reports noted that the stock dropped following the results, indicating investors may have been focused on forward expectations or other concerns. Needham cut its price target from $410 to $300, though it maintained a Buy rating. Report on the post-earnings stock decline Needham analyst rating

Institutional Trading of MACOM Technology Solutions

A number of institutional investors have recently bought and sold shares of the company. Swedbank AB acquired a new position in shares of MACOM Technology Solutions during the 1st quarter valued at $13,059,000. Azzad Asset Management Inc. ADV increased its holdings in 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 purchasing an additional 9,767 shares in the last quarter. Principal Financial Group Inc. increased its holdings in MACOM Technology Solutions by 41.7% in the 1st quarter. Principal Financial Group Inc. now owns 195,148 shares of the semiconductor company's stock valued at $43,337,000 after purchasing an additional 57,474 shares in the last quarter. Fifth Third Bancorp increased its holdings in MACOM Technology Solutions by 2,385.6% in the 1st quarter. Fifth Third Bancorp now owns 18,468 shares of the semiconductor company's stock valued at $4,101,000 after purchasing an additional 17,725 shares in the last quarter. Finally, Janus Henderson Group PLC raised its position in MACOM Technology Solutions by 15.5% in the first quarter. Janus Henderson Group PLC now owns 784,118 shares of the semiconductor company's stock valued at $174,109,000 after purchasing an additional 105,032 shares during the period. 76.14% of the stock is currently owned by hedge funds and other institutional investors.

MACOM Technology Solutions Stock Down 14.6%

The firm has a 50-day simple moving average of $273.90 and a 200 day simple moving average of $283.02. The company has a market capitalization of $15.20 billion, a PE ratio of 64.08, a price-to-earnings-growth ratio of 0.77 and a beta of 1.82. 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 issued its earnings results on Thursday, November 5th. The semiconductor company reported $2.09 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.09. The company had revenue of $424.82 million during the quarter, compared to the consensus estimate of $420.35 million. MACOM Technology Solutions had a return on equity of 17.82% and a net margin of 20.70%. The company's revenue was up 62.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.94 earnings per share. On average, research analysts predict that MACOM Technology Solutions Holdings, Inc. will post 4.26 EPS for the current fiscal year.

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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