Tower Semiconductor (NASDAQ:TSEM) Trading 8.9% Higher - Time to Buy?

Key Points

• Tower Semiconductor's stock increased by 8.9% to close at $48.66 after trading as high as $47.38, despite a 61% decline in trading volume compared to its average.
• Benchmark has reaffirmed a "buy" rating with a new price target of $60.00, contributing to a consensus rating of "Moderate Buy" among analysts.
• The company reported a quarterly earnings per share (EPS) of $0.41, missing the consensus estimate of $0.47, although revenue was up 6.0% year-over-year.

Tower Semiconductor Ltd. (NASDAQ:TSEM - Get Free Report)'s share price was up 8.9% during trading on Monday . The stock traded as high as $47.38 and last traded at $48.66. Approximately 274,867 shares traded hands during trading, a decline of 61% from the average daily volume of 700,858 shares. The stock had previously closed at $44.67.

Wall Street Analyst Weigh In

TSEM has been the topic of a number of research reports. Wedbush set a $65.00 price objective on Tower Semiconductor and gave the company an "outperform" rating in a report on Tuesday. Susquehanna set a $66.00 price objective on shares of Tower Semiconductor and gave the stock a "positive" rating in a report on Tuesday. Finally, Benchmark reaffirmed a "buy" rating and issued a $66.00 price objective (up previously from $60.00) on shares of Tower Semiconductor in a research note on Monday. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $64.25.

Tower Semiconductor Stock Up 0.2%

The company has a current ratio of 6.57, a quick ratio of 5.82 and a debt-to-equity ratio of 0.05. The stock has a 50 day simple moving average of $44.24 and a 200 day simple moving average of $41.83. The firm has a market capitalization of $5.42 billion, a PE ratio of 28.19 and a beta of 0.77.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last announced its earnings results on Monday, August 4th. The semiconductor company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.47 by ($0.06). The business had revenue of $372.06 million for the quarter, compared to the consensus estimate of $371.63 million. Tower Semiconductor had a net margin of 13.20% and a return on equity of 7.37%. Tower Semiconductor's revenue for the quarter was up 6.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.53 EPS. As a group, sell-side analysts forecast that Tower Semiconductor Ltd. will post 1.67 earnings per share for the current year.

Hedge Funds Weigh In On Tower Semiconductor

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. increased its holdings in shares of Tower Semiconductor by 251.9% in the 4th quarter. Invesco Ltd. now owns 1,761,235 shares of the semiconductor company's stock worth $90,721,000 after purchasing an additional 1,260,683 shares in the last quarter. Mivtachim The Workers Social Insurance Fund Ltd. Under Special Management bought a new stake in Tower Semiconductor in the 1st quarter worth about $33,211,000. Point72 Asset Management L.P. increased its holdings in Tower Semiconductor by 21.0% in the 4th quarter. Point72 Asset Management L.P. now owns 3,758,574 shares of the semiconductor company's stock worth $193,604,000 after buying an additional 653,191 shares in the last quarter. Menora Mivtachim Holdings LTD. raised its position in Tower Semiconductor by 39.7% in the 1st quarter. Menora Mivtachim Holdings LTD. now owns 1,879,207 shares of the semiconductor company's stock worth $67,013,000 after buying an additional 533,700 shares during the last quarter. Finally, Assenagon Asset Management S.A. lifted its stake in Tower Semiconductor by 219.3% during the 1st quarter. Assenagon Asset Management S.A. now owns 641,105 shares of the semiconductor company's stock valued at $22,362,000 after acquiring an additional 440,314 shares during the period. 70.51% of the stock is owned by institutional investors.

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.