Tower Semiconductor (NASDAQ:TSEM) Stock Price Down 6.5% - Here's What Happened

Key Points

• Tower Semiconductor shares fell 6.5% intraday to $202.56, with about 563,028 shares traded — roughly 78% below the stock's average daily volume.
• Quarterly results beat estimates: EPS $0.78 vs. $0.67 expected and revenue $440.21M (+13.7% YoY); the company also shows strong liquidity (quick ratio 5.51, current ratio 6.48) and very low leverage (debt/equity 0.05).
• Analyst sentiment is mixed: MarketBeat's consensus is a "Hold" with a $173 price target, though individual targets range up to $230 and ratings include both Buy and Hold; the stock trades at a high PE (~105) and has a $22.86B market cap.

Shares of Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report) dropped 6.5% during mid-day trading on Wednesday . The stock traded as low as $205.00 and last traded at $202.5620. Approximately 563,028 shares changed hands during trading, a decline of 78% from the average daily volume of 2,557,222 shares. The stock had previously closed at $216.72.

Analyst Upgrades and Downgrades

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

Tower Semiconductor Stock Performance

The firm has a 50-day moving average price of $158.89 and a 200 day moving average price of $125.63. The firm has a market capitalization of $22.86 billion, a PE ratio of 105.12 and a beta of 0.71. The company has a quick ratio of 5.51, a current ratio of 6.48 and a debt-to-equity ratio of 0.05.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The semiconductor company reported $0.78 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $439.81 million. During the same period last year, the business posted $0.49 earnings per share. The company's quarterly revenue was up 13.7% on a year-over-year basis. Research analysts expect that Tower Semiconductor Ltd. will post 2.64 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of TSEM. Amundi boosted its position in shares of Tower Semiconductor by 86.8% during the first quarter. Amundi now owns 21,617 shares of the semiconductor company's stock worth $771,000 after buying an additional 10,042 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Tower Semiconductor by 4.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 99,633 shares of the semiconductor company's stock worth $3,553,000 after buying an additional 3,954 shares during the period. Geode Capital Management LLC boosted its position in shares of Tower Semiconductor by 0.7% during the second quarter. Geode Capital Management LLC now owns 95,384 shares of the semiconductor company's stock worth $4,135,000 after buying an additional 662 shares during the period. Hsbc Holdings PLC purchased a new position in shares of Tower Semiconductor during the second quarter worth $438,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Tower Semiconductor during the second quarter worth $5,809,000. 70.51% of the stock is currently owned by hedge funds and other 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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