Veeco Instruments (NASDAQ:VECO) Shares Gap Up Following Strong Earnings

Key Points

• Veeco Instruments shares opened at $22.74, significantly higher than the previous close of $19.94, following an earnings report that outperformed analysts' expectations with $0.36 EPS compared to a consensus of $0.22.
• The company's revenue for the quarter was $166.10 million, exceeding analyst estimates of $151.31 million, although it was down 5.6% year-over-year.
• Several analysts have adjusted price targets for Veeco, with Goldman Sachs lowering their target from $27.00 to $20.00, while the stock maintains a consensus rating of "Moderate Buy" with a target price of $30.00.

Veeco Instruments Inc. (NASDAQ:VECO - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $19.94, but opened at $22.74. Veeco Instruments shares last traded at $21.07, with a volume of 182,063 shares.

The semiconductor company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.14. The business had revenue of $166.10 million during the quarter, compared to the consensus estimate of $151.31 million. Veeco Instruments had a return on equity of 7.38% and a net margin of 8.65%. Veeco Instruments's revenue for the quarter was down 5.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.42 EPS.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on VECO shares. Barclays dropped their price objective on Veeco Instruments from $22.00 to $21.00 and set an "equal weight" rating for the company in a research note on Thursday, May 8th. Needham & Company LLC boosted their price objective on Veeco Instruments from $29.00 to $30.00 and gave the stock a "buy" rating in a research report on Thursday. The Goldman Sachs Group dropped their price objective on Veeco Instruments from $27.00 to $20.00 and set a "neutral" rating on the stock in a report on Friday, May 9th. Finally, Benchmark lowered their price target on Veeco Instruments from $31.00 to $28.00 and set a "buy" rating for the company in a research report on Thursday. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, Veeco Instruments presently has an average rating of "Moderate Buy" and an average price target of $27.33.

Insider Activity

In other news, SVP Adrian Devasahayam sold 11,010 shares of the business's stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $20.50, for a total value of $225,705.00. Following the transaction, the senior vice president owned 89,254 shares of the company's stock, valued at approximately $1,829,707. The trade was a 10.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Veeco Instruments

Several hedge funds and other institutional investors have recently modified their holdings of VECO. Versant Capital Management Inc increased its holdings in Veeco Instruments by 396.2% in the 1st quarter. Versant Capital Management Inc now owns 1,295 shares of the semiconductor company's stock worth $26,000 after acquiring an additional 1,034 shares in the last quarter. Brooklyn Investment Group purchased a new stake in Veeco Instruments in the first quarter valued at approximately $37,000. Signaturefd LLC raised its stake in shares of Veeco Instruments by 213.9% during the first quarter. Signaturefd LLC now owns 3,139 shares of the semiconductor company's stock worth $63,000 after purchasing an additional 2,139 shares during the last quarter. US Bancorp DE raised its position in Veeco Instruments by 33.6% in the first quarter. US Bancorp DE now owns 3,366 shares of the semiconductor company's stock worth $68,000 after acquiring an additional 847 shares in the last quarter. Finally, Hantz Financial Services Inc. raised its position in Veeco Instruments by 49,728.6% in the second quarter. Hantz Financial Services Inc. now owns 3,488 shares of the semiconductor company's stock worth $71,000 after acquiring an additional 3,481 shares in the last quarter. 98.46% of the stock is owned by hedge funds and other institutional investors.

Veeco Instruments Price Performance

The company has a quick ratio of 3.43, a current ratio of 5.10 and a debt-to-equity ratio of 0.26. The company has a market cap of $1.43 billion, a price-to-earnings ratio of 23.19 and a beta of 1.12. The company has a fifty day simple moving average of $20.90 and a two-hundred day simple moving average of $21.06.

About Veeco Instruments

Veeco Instruments Inc, together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices in the United States, Europe, the Middle East, and Africa, China, Rest of the Asia-Pacific, and internationally. The company offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, advanced packaging lithography, atomic layer deposition, and other deposition systems.