MACOM Technology Solutions (NASDAQ:MTSI) Shares Up 11.9% on Better-Than-Expected Earnings

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)’s share price was up 11.9% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $288.51 and last traded at $294.78. Approximately 427,007 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 1,463,196 shares. The stock had previously closed at $263.46.

The semiconductor company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.05. The firm had revenue of $342.24 million during the quarter, compared to analysts’ expectations of $335.53 million. MACOM Technology Solutions had a return on equity of 16.01% and a net margin of 16.46%.The company’s revenue for the quarter was up 35.8% compared to the same quarter last year. During the same period last year, the business posted $0.90 earnings per share. MACOM Technology Solutions has set its Q4 2026 guidance at 1.970-2.030 EPS.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of MACOM Technology Solutions in a research note on Friday, May 8th. Zacks Research cut shares of MACOM Technology Solutions from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 24th. Loop Capital started coverage on MACOM Technology Solutions in a research report on Friday, April 10th. They issued a “buy” rating and a $300.00 target price on the stock. Stifel Nicolaus upped their price objective on shares of MACOM Technology Solutions from $385.00 to $450.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Finally, JPMorgan Chase & Co. raised their target price on MACOM Technology Solutions from $240.00 to $345.00 and gave the company a “neutral” rating in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $330.45.

Insider Buying and Selling at MACOM Technology Solutions

In related news, CEO Stephen G. Daly sold 15,828 shares of MACOM Technology Solutions stock in a transaction on Friday, May 29th. The stock was sold at an average price of $365.75, for a total transaction of $5,789,091.00. Following the completion of the transaction, the chief executive officer directly owned 38,389 shares of the company’s stock, valued at approximately $14,040,776.75. The trade was a 29.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Y. Chung sold 43,268 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $378.20, for a total transaction of $16,363,957.60. Following the transaction, the director directly owned 6,781 shares of the company’s stock, valued at approximately $2,564,574.20. This trade represents a 86.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 74,378 shares of company stock valued at $27,732,022. Insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On MACOM Technology Solutions

Several institutional investors have recently added to or reduced their stakes in MTSI. Whale Rock Capital Management LLC acquired a new position in shares of MACOM Technology Solutions during the fourth quarter worth approximately $134,164,000. Wellington Management Group LLP raised its holdings in shares of MACOM Technology Solutions by 180.6% during the third quarter. Wellington Management Group LLP now owns 986,438 shares of the semiconductor company’s stock valued at $122,802,000 after acquiring an additional 634,903 shares during the period. Bessemer Group Inc. boosted its position in MACOM Technology Solutions by 170,782.0% during the 4th quarter. Bessemer Group Inc. now owns 569,037 shares of the semiconductor company’s stock worth $97,465,000 after acquiring an additional 568,704 shares during the period. Norges Bank acquired a new position in shares of MACOM Technology Solutions in the fourth quarter worth $97,397,000. Finally, FengHe Fund Management Pte. Ltd. acquired a new position in MACOM Technology Solutions in the fourth quarter worth approximately $90,663,000. 76.14% of the stock is currently owned by institutional investors and hedge funds.

MACOM Technology Solutions Trading Up 13.6%

The company has a fifty day simple moving average of $328.14 and a two-hundred day simple moving average of $286.07. The company has a debt-to-equity ratio of 0.29, a current ratio of 7.52 and a quick ratio of 5.84. The company has a market capitalization of $22.83 billion, a P/E ratio of 129.37, a price-to-earnings-growth ratio of 2.24 and a beta of 1.70.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions is a semiconductor company specializing in high-performance analog, microwave, millimeter-wave and photonic semiconductor solutions. Its product portfolio includes amplifiers, switches, modulators, detectors and integrated circuits designed to optimize signal integrity, power management and data transmission. MACOM’s offerings address both digital and optical domains, providing critical building blocks for next-generation communications infrastructure.

The company’s solutions serve a diverse set of end markets, including wireless and wireline telecom, data centers, satellite communications, aerospace and defense, industrial and automotive applications.