Tower Semiconductor (NASDAQ:TSEM) Stock Breaks Above 200-Day Moving Average - Here's Why

Key Points

• Tower Semiconductor shares moved above their 200-day moving average, reaching $228.12 before last trading at $217.28, with more than 1.7 million shares changing hands.
• Analysts remain broadly optimistic, with a consensus rating of “Moderate Buy” and an average price target of $318.67; recent targets include $270 from Stifel and $310 from Barclays.
• The company reported strong quarterly results, with EPS of $0.88 exceeding estimates and revenue rising 23.7% year over year to $460.08 million, although insiders sold approximately $45.6 million of stock over the past three months.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $223.74 and traded as high as $228.12. Tower Semiconductor shares last traded at $217.28, with a volume of 1,768,122 shares trading hands.

Wall Street Analysts Forecast Growth

TSEM has been the topic of several recent research reports. Barclays assumed coverage on shares of Tower Semiconductor in a research note on Friday, September 18th. They set an "overweight" rating and a $310.00 target price on the stock. Stifel Nicolaus assumed coverage on shares of Tower Semiconductor in a research report on Tuesday, September 1st. They issued a "buy" rating and a $270.00 target price for the company. UBS Group reissued a "buy" rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Benchmark restated a "buy" rating on shares of Tower Semiconductor in a research report on Wednesday, August 5th. Finally, National Bank Financial raised shares of Tower Semiconductor to a "buy" rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Tower Semiconductor has an average rating of "Moderate Buy" and a consensus target price of $318.67.

Tower Semiconductor Stock Performance

The stock has a market cap of $24.43 billion, a PE ratio of 85.88 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 stock 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 earnings results on Tuesday, August 4th. The semiconductor company reported $0.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.12. Tower Semiconductor had a return on equity of 9.83% and a net margin of 16.94%.The company had revenue of $460.08 million during the quarter, compared to analysts' expectations of $454.68 million. During the same period in the prior year, the business earned $0.41 EPS. The firm's quarterly revenue was up 23.7% on a year-over-year basis. Equities analysts predict that Tower Semiconductor Ltd. will post 3.59 EPS for the current fiscal year.

Insider Transactions at Tower Semiconductor

In related news, CEO Russell Ellwanger sold 104,226 shares of the company's stock in a transaction dated 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 completion of the sale, the chief executive officer owned 526,788 shares of the company's stock, valued at approximately $130,822,531.92. This represents a 16.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Yoav Chelouche sold 232 shares of the firm's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $215.06, for a total transaction of $49,893.92. Following the sale, the director owned 33,734 shares of the company's stock, valued at approximately $7,254,834.04. The trade was a 0.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 181,767 shares of company stock valued at $45,610,065 in the last three months. 1.00% of the stock is currently owned by insiders.

Institutional Trading of Tower Semiconductor

A number of hedge funds and other institutional investors have recently made changes to their positions in TSEM. Hanson & Doremus Investment Management purchased a new stake in shares of Tower Semiconductor during the 1st quarter valued at approximately $53,000. Caitong International Asset Management Co. Ltd purchased a new position in Tower Semiconductor in the fourth quarter worth approximately $76,000. TD Waterhouse Canada Inc. increased its stake in Tower Semiconductor by 230.7% during the second quarter. TD Waterhouse Canada Inc. now owns 334 shares of the semiconductor company's stock worth $82,000 after acquiring an additional 233 shares during the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. raised its position in Tower Semiconductor by 53,200.0% in the fourth quarter. Pinpoint Asset Management Singapore Pte. Ltd. now owns 1,066 shares of the semiconductor company's stock valued at $125,000 after purchasing an additional 1,064 shares during the period. Finally, Western Wealth Management LLC acquired a new position in shares of Tower Semiconductor in the 1st quarter valued at $141,000. Institutional investors and hedge funds own 70.51% of the company's stock.

About Tower Semiconductor

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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