Tower Semiconductor (NASDAQ:TSEM) Stock Price Down 4.4% - What's Next?

Key Points

• Tower Semiconductor shares fell 4.4% to approximately $191.53, with trading volume 67% below the average daily level.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $316, despite the stock trading below its 50- and 200-day moving averages.
• The company beat quarterly earnings and revenue estimates, reporting $0.88 in EPS and $460.08 million in revenue, while revenue increased 23.7% year over year. However, insiders sold roughly $45.6 million worth of shares over the past 90 days.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) shares dropped 4.4% on Tuesday. The stock traded as low as $183.42 and last traded at $191.5320. 730,254 shares traded hands during mid-day trading, a decline of 67% from the average daily volume of 2,242,736 shares. The stock had previously closed at $200.30.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Stifel Nicolaus assumed coverage on Tower Semiconductor in a research report on Tuesday, September 1st. They set a "buy" rating and a $270.00 target price on the stock. Weiss Ratings lowered Tower Semiconductor from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 18th. National Bank Financial raised shares of Tower Semiconductor to a "buy" rating in a report on Friday, August 7th. Mizuho began coverage on Tower Semiconductor in a research report on Friday, September 25th. They set an "outperform" rating and a $300.00 price target on the stock. Finally, Barclays started coverage on Tower Semiconductor in a research report on Friday, September 18th. They issued an "overweight" rating and a $310.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Tower Semiconductor presently has an average rating of "Moderate Buy" and a consensus price target of $316.00.

Tower Semiconductor Price Performance

The company has a market capitalization of $21.39 billion, a PE ratio of 74.90 and a beta of 0.89. 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 firm's 50-day moving average is $224.27 and its 200-day moving average is $232.91.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last released its quarterly earnings results 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 business had revenue of $460.08 million for the quarter, compared to the consensus estimate of $454.68 million. During the same quarter last year, the business posted $0.41 earnings per share. The company's revenue for the quarter was up 23.7% on a year-over-year basis. Equities analysts predict that Tower Semiconductor Ltd. will post 3.56 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Tower Semiconductor news, CEO Russell Ellwanger sold 104,226 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $248.34, for a total transaction of $25,883,484.84. Following the transaction, the chief executive officer directly owned 526,788 shares in the company, valued at $130,822,531.92. This trade represents a 16.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Yoav Chelouche sold 232 shares of Tower Semiconductor stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $215.06, for a total transaction of $49,893.92. Following the transaction, the director directly owned 33,734 shares in the company, valued at $7,254,834.04. This trade represents a 0.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 181,767 shares of company stock valued at $45,610,065 in the last 90 days. 1.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Tower Semiconductor

A number of hedge funds have recently made changes to their positions in TSEM. Assenagon Asset Management S.A. boosted its stake in shares of Tower Semiconductor by 34.2% during the third quarter. Assenagon Asset Management S.A. now owns 158,901 shares of the semiconductor company's stock valued at $37,115,000 after purchasing an additional 40,495 shares during the period. Farther Finance Advisors LLC raised its holdings in Tower Semiconductor by 21.7% during the 3rd quarter. Farther Finance Advisors LLC now owns 1,710 shares of the semiconductor company's stock valued at $389,000 after buying an additional 305 shares during the last quarter. Versant Capital Management Inc raised its holdings in Tower Semiconductor by 20.8% during the 3rd quarter. Versant Capital Management Inc now owns 319 shares of the semiconductor company's stock valued at $73,000 after buying an additional 55 shares during the last quarter. QRG Capital Management Inc. raised its holdings in Tower Semiconductor by 4.1% during the 2nd quarter. QRG Capital Management Inc. now owns 1,295 shares of the semiconductor company's stock valued at $338,000 after buying an additional 51 shares during the last quarter. Finally, WINTON GROUP Ltd purchased a new stake in Tower Semiconductor during the 2nd quarter valued at $9,592,000. 70.51% of the stock is currently owned by institutional investors.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd. is an Israeli specialty semiconductor foundry that manufactures integrated circuits for fabless semiconductor companies, integrated device manufacturers and system companies. The company provides process technologies and production services rather than selling branded end-user electronics.

Its offerings include analog and mixed-signal technologies, radio-frequency and high-voltage circuits, power management solutions, image sensors, and specialty memory products.

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