Tower Semiconductor (NASDAQ:TSEM) Shares Down 7% - Time to Sell?

Key Points

• Shares of Tower Semiconductor fell 7% to about $189 on Tuesday, with only ~613,803 shares traded—a 76% drop from average daily volume.
• Analyst sentiment is mixed: the consensus is a Hold with an average target of $173 (two Buy, three Hold), while individual targets range up to $230.
• The company reported an EPS beat ($0.78 vs. $0.67) and 13.7% revenue growth, and shows strong liquidity and low leverage, but carries a high trailing P/E of 99.44 and a $21.6B market cap.

Shares of Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) dropped 7% on Tuesday . The company traded as low as $188.24 and last traded at $189.0920. Approximately 613,803 shares traded hands during trading, a decline of 76% from the average daily volume of 2,602,330 shares. The stock had previously closed at $203.33.

Wall Street Analyst Weigh In

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

Tower Semiconductor Trading Down 5.3%

The company has a quick ratio of 5.51, a current ratio of 6.48 and a debt-to-equity ratio of 0.05. The business's 50 day moving average is $164.59 and its 200-day moving average is $129.27. The firm has a market cap of $21.64 billion, a P/E ratio of 99.44 and a beta of 0.71.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last released its earnings results on Wednesday, February 11th. The semiconductor company reported $0.78 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.11. Tower Semiconductor had a net margin of 14.08% and a return on equity of 7.86%. The firm had revenue of $440.21 million during the quarter, compared to analyst estimates of $439.81 million. During the same quarter in the previous year, the firm earned $0.49 earnings per share. The firm's revenue for the quarter was up 13.7% compared to the same quarter last year. As a group, analysts forecast that Tower Semiconductor Ltd. will post 2.64 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Tower Semiconductor

Several institutional investors have recently modified their holdings of TSEM. USA Financial Formulas bought a new position in shares of Tower Semiconductor during the fourth quarter worth about $27,000. CIBC Private Wealth Group LLC grew its position in shares of Tower Semiconductor by 254.2% during the third quarter. CIBC Private Wealth Group LLC now owns 418 shares of the semiconductor company's stock worth $30,000 after acquiring an additional 300 shares during the last quarter. Westside Investment Management Inc. grew its position in shares of Tower Semiconductor by 100.0% during the third quarter. Westside Investment Management Inc. now owns 452 shares of the semiconductor company's stock worth $34,000 after acquiring an additional 226 shares during the last quarter. Advisory Services Network LLC bought a new position in shares of Tower Semiconductor during the third quarter worth about $48,000. Finally, Covestor Ltd bought a new position in shares of Tower Semiconductor during the third quarter worth about $52,000. 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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