Tower Semiconductor (NASDAQ:TSEM) Shares Gap Down - Should You Sell?

Key Points

• Tower Semiconductor shares opened lower after gapping down before Monday’s trading session, falling from a prior close of $222.75 to an opening price of $212.77 before recovering to around $223.11.
• Analysts remain mixed on the stock: Susquehanna, Benchmark, and Wedbush all recently raised price targets, but the consensus rating is still Hold with an average target of $276.75.
• The company has strong institutional ownership and solid liquidity, with hedge funds and institutions holding about 70.51% of shares and a quick ratio of 4.92, but it also trades at a high valuation with a PE ratio of 109.42.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $222.75, but opened at $212.77. Tower Semiconductor shares last traded at $223.1050, with a volume of 270,296 shares changing hands.

Analyst Ratings Changes

A number of equities analysts have weighed in on TSEM shares. Susquehanna increased their price target 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 boosted their price objective on shares of Tower Semiconductor from $230.00 to $335.00 and gave the company a "buy" rating in a research note on Thursday, May 14th. Finally, Wedbush boosted their price objective on shares of Tower Semiconductor from $140.00 to $300.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $276.75.

Tower Semiconductor Trading Up 5.6%

The business has a fifty day moving average price of $253.40 and a 200 day moving average price of $185.87. The company has a market capitalization of $26.45 billion, a PE ratio of 109.42 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.92 and a current ratio of 5.63.

Institutional Trading of Tower Semiconductor

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD lifted its position in Tower Semiconductor by 3,222.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,682,152 shares of the semiconductor company's stock valued at $549,779,000 after buying an additional 4,541,235 shares in the last quarter. Vanguard Group Inc. grew 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 worth $507,317,000 after buying an additional 53,112 shares during the period. Migdal Insurance & Financial Holdings Ltd. increased its position in shares of Tower Semiconductor by 0.8% in the fourth quarter. Migdal Insurance & Financial Holdings Ltd. now owns 3,002,806 shares of the semiconductor company's stock worth $352,589,000 after acquiring an additional 25,000 shares in the last quarter. Goldman Sachs Group Inc. increased 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 acquiring an additional 1,505,421 shares in the last quarter. Finally, Wellington Management Group LLP raised its stake 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 acquiring an additional 15,461 shares during the period. Institutional investors and hedge funds own 70.51% of the company's stock.

Tower Semiconductor Company Profile

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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