Ultra Clean (NASDAQ:UCTT) Shares Gap Up - Still a Buy?

Key Points

• Ultra Clean shares rose 2.8%, opening at $81.08 versus a prior close of $78.07 and later trading near $81.30.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $129; TD Cowen and Needham recently raised their targets.
• The company exceeded quarterly expectations, reporting $0.70 EPS versus $0.53 estimated and revenue of $644.9 million, up 24.3% year over year. Institutional investors own approximately 96.1% of the stock.

Ultra Clean Holdings, Inc. (NASDAQ:UCTT - Get Free Report) shares gapped up prior to trading on Tuesday. The stock had previously closed at $78.07, but opened at $81.08. Ultra Clean shares last traded at $81.2970, with a volume of 64,334 shares trading hands.

Analyst Ratings Changes

Several analysts have recently commented on UCTT shares. TD Cowen increased their target price on Ultra Clean from $130.00 to $140.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. Needham & Company LLC boosted their price objective on Ultra Clean from $92.00 to $125.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. UBS Group reiterated a "buy" rating on shares of Ultra Clean in a research report on Tuesday, August 4th. Weiss Ratings downgraded shares of Ultra Clean from a "sell (d)" rating to a "sell (d-)" rating in a research note on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Ultra Clean from a "hold" rating to a "buy" rating in a report on Sunday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Ultra Clean presently has a consensus rating of "Moderate Buy" and an average target price of $129.00.

Ultra Clean Trading Up 2.8%

The company has a fifty day simple moving average of $78.43 and a two-hundred day simple moving average of $83.25. The company has a quick ratio of 1.25, a current ratio of 2.73 and a debt-to-equity ratio of 0.84. The stock has a market capitalization of $3.60 billion, a P/E ratio of -153.99, a price-to-earnings-growth ratio of 0.83 and a beta of 1.88.

Ultra Clean (NASDAQ:UCTT - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The semiconductor company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.53 by $0.17. Ultra Clean had a positive return on equity of 6.99% and a negative net margin of 1.07%.The company had revenue of $644.90 million during the quarter, compared to the consensus estimate of $587.65 million. During the same period in the prior year, the company earned $0.27 earnings per share. The company's revenue for the quarter was up 24.3% compared to the same quarter last year. Ultra Clean has set its Q3 2026 guidance at 0.830-1.030 EPS. On average, sell-side analysts expect that Ultra Clean Holdings, Inc. will post 2.67 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new position in Ultra Clean in the second quarter valued at $986,722,000. Paradigm Capital Management Inc. NY bought a new stake in Ultra Clean during the 2nd quarter worth about $86,723,000. Bank of America Corp DE bought a new position in shares of Ultra Clean in the 2nd quarter valued at about $60,628,000. Assenagon Asset Management S.A. grew its holdings in shares of Ultra Clean by 96.7% in the 2nd quarter. Assenagon Asset Management S.A. now owns 278,166 shares of the semiconductor company's stock valued at $39,664,000 after acquiring an additional 136,732 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Ultra Clean in the second quarter valued at about $38,539,000. Institutional investors own 96.06% of the company's stock.

Ultra Clean Company Profile

Ultra Clean Holdings, Inc NASDAQ: UCTT, doing business as Ultra Clean Technology, provides critical subsystems, components and services used in the semiconductor manufacturing industry. The company primarily serves semiconductor equipment manufacturers and semiconductor device producers, helping support the fabrication processes used to make integrated circuits and other advanced electronic components.

Ultra Clean's products include gas delivery systems, fluid and chemical delivery systems, vacuum assemblies, process modules, structural components and other engineered assemblies for semiconductor production equipment.

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