Tower Semiconductor (NASDAQ:TSEM) Shares Climb 5.9% - What's Next?

Key Points

• Tower Semiconductor shares rose 5.9% to about $230.12, though trading volume was 87% below the stock’s average daily volume.
• Analyst sentiment remains positive, with the company carrying a “Moderate Buy” consensus rating and an average price target of $316; recent targets range from $300 to $367.
• The company reported strong quarterly results, with EPS of $0.88 beating estimates and revenue rising 23.7% year over year to $460.08 million. However, insiders sold about 181,767 shares worth $45.6 million over the past three months.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) was up 5.9% on Friday. The stock traded as high as $230.29 and last traded at $230.1240. 283,536 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 2,262,747 shares. The stock had previously closed at $217.28.

Analyst Upgrades and Downgrades

Several brokerages recently commented on TSEM. Barclays assumed coverage on Tower Semiconductor in a report on Friday, September 18th. They set an "overweight" rating and a $310.00 target price on the stock. Benchmark reaffirmed a "buy" rating on shares of Tower Semiconductor in a research report on Wednesday, August 5th. UBS Group reiterated a "buy" rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Bank of America initiated coverage on shares of Tower Semiconductor in a research report on Friday, August 7th. They set a "buy" rating and a $367.00 target price on the stock. Finally, Mizuho started coverage on shares of Tower Semiconductor in a research note on Friday. They issued an "outperform" rating and a $300.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Tower Semiconductor currently has an average rating of "Moderate Buy" and an average price target of $316.00.

Tower Semiconductor Stock Performance

The firm has a market cap of $26.33 billion, a price-to-earnings ratio of 92.27 and a beta of 0.88. The company has a quick ratio of 4.31, a current ratio of 4.91 and a debt-to-equity ratio of 0.04. The company has a 50 day moving average of $225.23 and a 200 day moving average of $223.74.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The semiconductor company reported $0.88 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.12. Tower Semiconductor had a return on equity of 9.83% and a net margin of 16.94%.The firm had revenue of $460.08 million during the quarter, compared to analyst estimates of $454.68 million. During the same quarter last year, the firm earned $0.41 EPS. Tower Semiconductor's quarterly revenue was up 23.7% on a year-over-year basis. As a group, equities research analysts expect that Tower Semiconductor Ltd. will post 3.59 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Russell Ellwanger sold 104,226 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $248.34, for a total value of $25,883,484.84. Following the sale, the chief executive officer directly owned 526,788 shares of the company's stock, valued at $130,822,531.92. This represents a 16.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Yoav Chelouche sold 232 shares of the company's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $215.06, for a total transaction of $49,893.92. Following the completion of the sale, the director directly owned 33,734 shares in the company, valued at $7,254,834.04. This represents a 0.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 181,767 shares of company stock valued at $45,610,065 in the last three months. Corporate insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in TSEM. Hanson & Doremus Investment Management acquired a new stake in shares of Tower Semiconductor in the 1st quarter valued at about $53,000. TD Waterhouse Canada Inc. grew its stake in Tower Semiconductor by 230.7% in the second quarter. TD Waterhouse Canada Inc. now owns 334 shares of the semiconductor company's stock worth $82,000 after purchasing an additional 233 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Tower Semiconductor in the fourth quarter worth about $76,000. Greenleaf Trust bought a new stake in Tower Semiconductor in the second quarter valued at about $201,000. Finally, Western Wealth Management LLC bought a new stake in Tower Semiconductor in the first quarter valued at about $141,000. 70.51% of the stock is owned by institutional investors and hedge funds.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd. NASDAQ: TSEM is a specialty semiconductor foundry that manufactures integrated circuits for fabless chip companies, integrated device manufacturers and original equipment manufacturers. The company focuses on analog and mixed-signal technologies rather than high-volume digital logic, providing process development, wafer manufacturing, design enablement and other foundry services.

Its technology portfolio includes radio-frequency and high-performance analog circuits, power management, CMOS image sensors, medical and industrial sensors, silicon photonics, microelectromechanical systems (MEMS), and automotive and industrial semiconductor solutions.

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