Tower Semiconductor (NASDAQ:TSEM) Shares Gap Down - Here's Why

Key Points

• Tower Semiconductor shares gapped down from a prior close of $219.67 to an opening price of $205.04, later trading near $213.06.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and a consensus price target of $276.75; Susquehanna raised its target to $330 and Wedbush to $300.
• Institutional investors own 70.51% of the stock, while the company has a $25.95 billion market capitalization and relatively low debt-to-equity ratio of 0.04.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $219.67, but opened at $205.04. Tower Semiconductor shares last traded at $213.0590, with a volume of 539,671 shares trading hands.

Analysts Set New Price Targets

TSEM has been the subject of several recent analyst reports. Susquehanna lifted their target price on shares of Tower Semiconductor from $180.00 to $330.00 and gave the stock a "positive" rating in a research note on Thursday, May 14th. Benchmark reaffirmed a "buy" rating on shares of Tower Semiconductor in a research report on Wednesday, July 15th. UBS Group reissued a "buy" rating on shares of Tower Semiconductor in a report on Wednesday, July 15th. Finally, Wedbush boosted their target price on shares of Tower Semiconductor from $140.00 to $300.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Tower Semiconductor has an average rating of "Moderate Buy" and an average target price of $276.75.

Tower Semiconductor Stock Up 5.1%

The firm's 50-day moving average price is $249.19 and its 200 day moving average price is $197.61. The firm has a market cap of $25.95 billion, a P/E ratio of 107.60 and a beta of 0.90. The company has a quick ratio of 4.92, a current ratio of 5.63 and a debt-to-equity ratio of 0.04.

Institutional Investors Weigh In On Tower Semiconductor

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its position in shares of Tower Semiconductor by 3,222.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,682,152 shares of the semiconductor company's stock worth $549,779,000 after buying an additional 4,541,235 shares in the last quarter. Vanguard Group Inc. lifted its stake in Tower Semiconductor by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 4,338,080 shares of the semiconductor company's stock valued at $507,317,000 after buying an additional 53,112 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. lifted its position in shares of Tower Semiconductor by 0.8% in the 4th quarter. Migdal Insurance & Financial Holdings Ltd. now owns 3,002,806 shares of the semiconductor company's stock valued at $352,589,000 after acquiring an additional 25,000 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Tower Semiconductor by 214.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,206,467 shares of the semiconductor company's stock worth $259,083,000 after buying an additional 1,505,421 shares during the period. Finally, Wellington Management Group LLP increased its holdings in shares of Tower Semiconductor by 0.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,108,004 shares of the semiconductor company's stock valued at $152,409,000 after purchasing an additional 15,461 shares during the period. 70.51% of the stock is currently owned by institutional investors.

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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