Tower Semiconductor (NASDAQ:TSEM) Stock Price Up 8.9% - Should You 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) shares were up 8.9% on Monday . The company 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.

Analysts Set New Price Targets

Separately, Benchmark reaffirmed a "buy" rating and set a $60.00 price target on shares of Tower Semiconductor in a research report on Thursday, May 15th. One analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $60.00.

Tower Semiconductor Trading Up 13.2%

The company has a debt-to-equity ratio of 0.05, a current ratio of 6.93 and a quick ratio of 5.82. The business has a 50-day simple moving average of $43.55 and a two-hundred day simple moving average of $41.76. The stock has a market cap of $5.61 billion, a price-to-earnings ratio of 27.95 and a beta of 0.77.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last issued its earnings results on Monday, August 4th. The semiconductor company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.06). Tower Semiconductor had a return on equity of 7.73% and a net margin of 13.86%. During the same period in the prior year, the company earned $0.53 EPS. The company's revenue was up 6.0% on a year-over-year basis. Equities analysts forecast that Tower Semiconductor Ltd. will post 1.67 EPS for the current fiscal year.

Hedge Funds Weigh In On Tower Semiconductor

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its stake in Tower Semiconductor by 2.4% in the 1st quarter. Vanguard Group Inc. now owns 4,087,155 shares of the semiconductor company's stock valued at $145,106,000 after buying an additional 93,868 shares during the last quarter. Point72 Asset Management L.P. lifted its position in Tower Semiconductor by 21.0% during the fourth quarter. Point72 Asset Management L.P. now owns 3,758,574 shares of the semiconductor company's stock worth $193,604,000 after acquiring an additional 653,191 shares during the last quarter. Jennison Associates LLC boosted its holdings in shares of Tower Semiconductor by 2.3% during the first quarter. Jennison Associates LLC now owns 2,546,357 shares of the semiconductor company's stock worth $90,803,000 after acquiring an additional 57,544 shares during the period. Meitav Investment House Ltd. grew its position in shares of Tower Semiconductor by 1.0% in the second quarter. Meitav Investment House Ltd. now owns 2,242,514 shares of the semiconductor company's stock valued at $97,247,000 after purchasing an additional 22,873 shares during the last quarter. Finally, Wellington Management Group LLP grew its position in shares of Tower Semiconductor by 12.2% in the first quarter. Wellington Management Group LLP now owns 2,240,229 shares of the semiconductor company's stock valued at $79,887,000 after purchasing an additional 243,267 shares during the last quarter. 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.

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