Tower Semiconductor (NASDAQ:TSEM) Hits New 52-Week High - Still a Buy?

Key Points

• Tower Semiconductor hit a new 52-week high, trading as high as $212.38 and last at $210.85 on about 1.42M shares (stock was up roughly 1.8% intraday).
• Analyst views are mixed: Benchmark raised its target to $230 with a Buy, but the consensus is a Hold with an average target of $173 (2 Buys, 3 Holds).
• The company beat last quarter's EPS ($0.78 vs. $0.67 consensus) with revenue up 13.7% YoY and strong liquidity (current ratio 6.48, debt/equity 0.05), though valuation is elevated (P/E ≈110).

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $212.38 and last traded at $210.85, with a volume of 1424647 shares trading hands. The stock had previously closed at $209.47.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on TSEM shares. Benchmark lifted their target price on Tower Semiconductor from $165.00 to $230.00 and gave the company a "buy" rating in a research note on Thursday, March 26th. Susquehanna reissued a "positive" rating and set a $180.00 target price on shares of Tower Semiconductor in a research note on Thursday, February 12th. Weiss Ratings reissued a "hold (c)" rating on shares of Tower Semiconductor in a research note on Monday, December 29th. Barclays lifted their target price on Tower Semiconductor from $114.00 to $142.00 and gave the company an "equal weight" rating in a research note on Friday, February 13th. Finally, Wedbush lifted their target price on Tower Semiconductor from $125.00 to $140.00 and gave the company a "neutral" rating in a research note on Thursday, February 12th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $173.00.

Tower Semiconductor Trading Up 1.8%

The company has a current ratio of 6.48, a quick ratio of 5.51 and a debt-to-equity ratio of 0.05. The stock has a 50 day simple moving average of $148.84 and a 200-day simple moving average of $119.46. The firm has a market cap of $23.97 billion, a P/E ratio of 110.14 and a beta of 0.71.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The semiconductor company reported $0.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.67 by $0.11. Tower Semiconductor had a return on equity of 7.86% and a net margin of 14.08%.The business had revenue of $440.21 million for the quarter, compared to the consensus estimate of $439.81 million. During the same quarter in the previous year, the company posted $0.49 EPS. The company's revenue was up 13.7% compared to the same quarter last year. On average, equities research analysts expect that Tower Semiconductor Ltd. will post 1.67 EPS for the current fiscal year.

Institutional Trading of Tower Semiconductor

Large investors have recently added to or reduced their stakes in the company. USA Financial Formulas bought a new stake in Tower Semiconductor in the 4th quarter worth approximately $27,000. CIBC Private Wealth Group LLC increased its position in shares of Tower Semiconductor by 254.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 418 shares of the semiconductor company's stock valued at $30,000 after purchasing an additional 300 shares during the last quarter. Kestra Advisory Services LLC bought a new position in shares of Tower Semiconductor during the 4th quarter valued at approximately $52,000. Westside Investment Management Inc. increased its position in shares of Tower Semiconductor by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 452 shares of the semiconductor company's stock valued at $34,000 after purchasing an additional 226 shares during the last quarter. Finally, SBI Securities Co. Ltd. increased its position in shares of Tower Semiconductor by 344.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 520 shares of the semiconductor company's stock valued at $61,000 after purchasing an additional 403 shares during the last quarter. Institutional investors own 70.51% of the company's stock.

About Tower Semiconductor

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company's technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.

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