Tower Semiconductor (NASDAQ:TSEM) Stock Price Up 7.1% - Here's What Happened

Key Points

• Tower Semiconductor shares rose 7.1% in Monday trading, reaching $179.50 after closing at $167.56, though trading volume was 58% below the average.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $316; Barclays and Stifel Nicolaus recently initiated coverage with $310 and $270 targets, respectively.
• The company reported strong quarterly results, including EPS of $0.88 versus a $0.76 estimate and revenue of $460.08 million, up 23.7% year over year. However, insiders sold roughly $45.6 million of stock over the past three months.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report)'s stock price was up 7.1% during trading on Monday. The company traded as high as $174.92 and last traded at $179.4960. 939,573 shares were traded during mid-day trading, a decline of 58% from the average session volume of 2,259,686 shares. The stock had previously closed at $167.56.

Analyst Upgrades and Downgrades

TSEM has been the subject of several recent analyst reports. National Bank Financial upgraded shares of Tower Semiconductor to a "buy" rating in a research note on Friday, August 7th. Barclays began coverage on Tower Semiconductor in a report on Friday, September 18th. They issued an "overweight" rating and a $310.00 price target for the company. UBS Group reaffirmed a "buy" rating on shares of Tower Semiconductor in a research report on Wednesday, July 15th. Stifel Nicolaus assumed coverage on Tower Semiconductor in a report on Tuesday, September 1st. They issued a "buy" rating and a $270.00 price target for the company. Finally, Benchmark reiterated a "buy" rating on shares of Tower Semiconductor in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Tower Semiconductor has a consensus rating of "Moderate Buy" and an average price target of $316.00.

Tower Semiconductor Trading Up 9.0%

The company has a current ratio of 4.91, a quick ratio of 4.31 and a debt-to-equity ratio of 0.04. The firm has a 50-day moving average price of $217.87 and a 200-day moving average price of $232.46. The company has a market capitalization of $20.54 billion, a price-to-earnings ratio of 71.67 and a beta of 0.89.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last announced its earnings results on Tuesday, August 4th. The semiconductor company reported $0.88 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 business had revenue of $460.08 million during the quarter, compared to the consensus estimate of $454.68 million. During the same period in the prior year, the business posted $0.41 earnings per share. Tower Semiconductor's revenue was up 23.7% compared to the same quarter last year. As a group, sell-side analysts predict that Tower Semiconductor Ltd. will post 3.56 EPS for the current year.

Insider Buying and Selling

In related news, CEO Russell Ellwanger sold 104,226 shares of the firm's 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 completion of the sale, the chief executive officer directly owned 526,788 shares in the company, valued at approximately $130,822,531.92. This trade represents a 16.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Yoav Chelouche sold 232 shares of the 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 completion of 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 position. The SEC filing for this sale provides additional information. Insiders sold 181,767 shares of company stock valued at $45,610,065 over the last three months. 1.00% of the stock is owned by insiders.

Institutional Trading of Tower Semiconductor

A number of hedge funds have recently modified their holdings of the company. Versant Capital Management Inc increased its position in Tower Semiconductor by 20.8% in the 3rd quarter. Versant Capital Management Inc now owns 319 shares of the semiconductor company's stock valued at $73,000 after acquiring an additional 55 shares in the last quarter. Sterling Capital Management LLC acquired a new position in Tower Semiconductor during the 3rd quarter worth approximately $75,000. TD Waterhouse Canada Inc. increased its position in shares of Tower Semiconductor by 230.7% in the second quarter. TD Waterhouse Canada Inc. now owns 334 shares of the semiconductor company's stock valued at $82,000 after acquiring an additional 233 shares during the last quarter. Greenleaf Trust bought a new position in shares of Tower Semiconductor in the second quarter valued at $201,000. Finally, Western Wealth Management LLC bought a new position in Tower Semiconductor during the first quarter worth about $141,000. Institutional investors own 70.51% of the company's stock.

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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