Tower Semiconductor (NASDAQ:TSEM) Sets New 1-Year High - Here's Why

Key Points

• Tower Semiconductor has reached a new 12-month high, trading at $62.63, with a market capitalization of $6.89 billion.
• Wall Street analysts have a consensus rating of "Buy" for Tower Semiconductor, with price targets around $66.00 indicating bullish sentiment.
• The company's latest quarterly earnings report showed a revenue of $372.06 million, with earnings per share of $0.41, which was below analysts' expectations.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $62.63 and last traded at $61.62, with a volume of 197261 shares traded. The stock had previously closed at $60.71.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TSEM. Wedbush set a $65.00 price target on shares of Tower Semiconductor and gave the stock an "outperform" rating in a research note on Tuesday, August 5th. Benchmark restated a "buy" rating and issued a $66.00 price target (up previously from $60.00) on shares of Tower Semiconductor in a research note on Monday, August 4th. Finally, Susquehanna set a $66.00 price target on shares of Tower Semiconductor and gave the stock a "positive" rating in a research note on Tuesday, August 5th. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $64.25.

Tower Semiconductor Trading Up 0.4%

The company has a quick ratio of 5.50, a current ratio of 6.57 and a debt-to-equity ratio of 0.05. The firm's 50 day simple moving average is $49.89 and its two-hundred day simple moving average is $42.56. The stock has a market cap of $7.00 billion, a P/E ratio of 36.33 and a beta of 0.86.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last released its earnings results on Monday, August 4th. The semiconductor company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.47 by ($0.06). Tower Semiconductor had a net margin of 13.20% and a return on equity of 7.37%. The business had revenue of $372.06 million for the quarter, compared to the consensus estimate of $371.63 million. During the same quarter in the previous year, the firm earned $0.53 EPS. The firm's revenue for the quarter was up 6.0% on a year-over-year basis. Tower Semiconductor has set its Q3 2025 guidance at EPS. As a group, equities research analysts predict that Tower Semiconductor Ltd. will post 1.67 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Tower Semiconductor

Several hedge funds and other institutional investors have recently modified their holdings of the company. Orion Porfolio Solutions LLC boosted its holdings in shares of Tower Semiconductor by 1.1% during the second quarter. Orion Porfolio Solutions LLC now owns 28,517 shares of the semiconductor company's stock valued at $1,236,000 after acquiring an additional 301 shares during the period. Squarepoint Ops LLC boosted its holdings in shares of Tower Semiconductor by 12.9% during the second quarter. Squarepoint Ops LLC now owns 23,150 shares of the semiconductor company's stock valued at $1,004,000 after acquiring an additional 2,643 shares during the period. Thrivent Financial for Lutherans acquired a new position in shares of Tower Semiconductor during the second quarter valued at $1,262,000. Evergreen Capital Management LLC acquired a new stake in Tower Semiconductor in the second quarter worth about $216,000. Finally, State of Tennessee Department of Treasury lifted its holdings in Tower Semiconductor by 52.0% in the second quarter. State of Tennessee Department of Treasury now owns 121,018 shares of the semiconductor company's stock worth $5,246,000 after purchasing an additional 41,393 shares during the period. Institutional investors and hedge funds own 70.51% of the company's stock.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd., an independent semiconductor foundry, focus on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices in Israel, the United States, Japan, Europe, and internationally. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS.