MACOM Technology Solutions (NASDAQ:MTSI) Stock Price Up 12.5% - What's Next?

Key Points

• MACOM shares jumped 12.5% to about $254.76, though trading volume was 56% below its average.
• The company beat quarterly estimates, reporting EPS of $2.09 versus $2.00 expected and revenue of $424.82 million versus $420.35 million; revenue rose 62.6% year over year.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $316.25, despite some firms recently lowering their targets.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI - Get Free Report) rose 12.5% on Wednesday. The company traded as high as $256.66 and last traded at $254.7580. Approximately 663,579 shares were traded during trading, a decline of 56% from the average daily volume of 1,501,949 shares. The stock had previously closed at $226.48.

Analysts Set New Price Targets

MTSI has been the subject of several recent research reports. JPMorgan Chase & Co. decreased their price objective on MACOM Technology Solutions from $345.00 to $280.00 and set a "neutral" rating for the company in a report on Friday, November 6th. Zacks Research upgraded shares of MACOM Technology Solutions from a "hold" rating to a "strong-buy" rating in a report on Monday, August 24th. Susquehanna cut their target price on shares of MACOM Technology Solutions from $300.00 to $220.00 and set a "neutral" rating on the stock in a research report on Thursday, November 5th. BMO Capital Markets upgraded shares of MACOM Technology Solutions from a "market perform" rating to an "outperform" rating and set a $335.00 price target for the company in a report on Friday, September 18th. Finally, Stifel Nicolaus set a $360.00 price target on shares of MACOM Technology Solutions in a research report on Thursday, November 5th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, MACOM Technology Solutions currently has a consensus rating of "Moderate Buy" and an average target price of $316.25.

MACOM Technology Solutions Price Performance

The stock has a 50 day moving average of $269.47 and a 200-day moving average of $282.84. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.99 and a current ratio of 2.53. The company has a market cap of $19.34 billion, a PE ratio of 58.90, a price-to-earnings-growth ratio of 0.84 and a beta of 1.82.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $2.09 EPS for the quarter, beating the consensus estimate of $2.00 by $0.09. The business had revenue of $424.82 million for the quarter, compared to the consensus estimate of $420.35 million. MACOM Technology Solutions had a net margin of 25.25% and a return on equity of 22.46%. The business's revenue for the quarter was up 62.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.94 EPS. MACOM Technology Solutions has set its Q1 2027 guidance at 2.210-2.290 EPS. Equities analysts predict that MACOM Technology Solutions Holdings, Inc. will post 7.23 earnings per share for the current year.

Insider Buying and Selling

In other news, SVP Ambra R. Roth sold 9,497 shares of the firm's stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $226.65, for a total transaction of $2,152,495.05. Following the transaction, the senior vice president directly owned 15,666 shares in the company, valued at approximately $3,550,698.90. This trade represents a 37.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 completion of the sale, the chief operating officer directly 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. 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. Insiders sold a total of 40,827 shares of company stock worth $9,629,392 over the last 90 days. 0.36% of the stock is owned by insiders.

Institutional Investors Weigh In On MACOM Technology Solutions

A number of hedge funds have recently added to or reduced their stakes in MTSI. Burkett Financial Services LLC purchased a new stake in shares of MACOM Technology Solutions during the 3rd quarter worth $38,000. Mather Group LLC. lifted its stake in shares of MACOM Technology Solutions by 41.0% in the third 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 purchased a new stake in MACOM Technology Solutions during the second quarter worth about $49,000. Jacobi Capital Management LLC purchased a new stake in MACOM Technology Solutions during the third quarter worth about $51,000. Finally, Keating Financial Advisory Services Inc. purchased a new stake in MACOM Technology Solutions during the second quarter worth about $58,000. Institutional investors and hedge funds own 76.14% of the company's stock.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions designs and supplies semiconductor products for applications that use radio frequency, microwave, millimeter-wave and optical signals. Its products include amplifiers, switches, diodes, mixers, attenuators and other components used in communications and electronic systems. The company serves customers in markets including telecommunications, data centers, aerospace and defense, and industrial applications. Its components are used in equipment such as wireless infrastructure, high-speed optical networks, radar and test systems.

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