Tower Semiconductor (NASDAQ:TSEM) Shares Gap Down – What’s Next?

Shares of Tower Semiconductor Ltd. (NASDAQ:TSEM) gapped down before the market opened on Friday. The stock had previously closed at $209.80, but opened at $203.10. Tower Semiconductor shares last traded at $202.8460, with a volume of 117,052 shares trading hands.

Analyst Ratings Changes

Several brokerages have issued reports on TSEM. UBS Group reissued a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Bank of America started coverage on Tower Semiconductor in a research report on Friday, August 7th. They issued a “buy” rating and a $367.00 target price for the company. National Bank Financial raised Tower Semiconductor to a “buy” rating in a research report on Friday, August 7th. Mizuho initiated coverage on Tower Semiconductor in a report on Friday, September 25th. They set an “outperform” rating and a $300.00 price target on the stock. Finally, Benchmark reissued a “buy” rating on shares of Tower Semiconductor in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $316.00.

Tower Semiconductor Trading Down 3.5%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.31 and a current ratio of 4.91. The stock has a market cap of $22.76 billion, a price-to-earnings ratio of 80.51 and a beta of 0.89. The company’s 50 day simple moving average is $226.45 and its two-hundred day simple moving average is $232.48.

Tower Semiconductor (NASDAQ:TSEM) last posted its quarterly earnings results on Tuesday, August 4th. The semiconductor company reported $0.88 EPS for the quarter, beating the consensus estimate of $0.76 by $0.12. Tower Semiconductor had a net margin of 16.94% and a return on equity of 9.83%. The business had revenue of $460.08 million for the quarter, compared to analysts’ expectations of $454.68 million. During the same period in the previous year, the company posted $0.41 EPS. Tower Semiconductor’s revenue was up 23.7% on a year-over-year basis. Research analysts expect that Tower Semiconductor Ltd. will post 3.56 EPS for the current fiscal year.

Insider Buying and Selling at Tower Semiconductor

In related news, Director Yoav Chelouche sold 232 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $215.06, for a total value of $49,893.92. Following the transaction, the director owned 33,734 shares in the company, valued at approximately $7,254,834.04. This represents a 0.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Russell Ellwanger sold 104,226 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $248.34, for a total transaction of $25,883,484.84. Following the completion of the sale, the chief executive officer directly owned 526,788 shares of the company’s stock, valued at $130,822,531.92. This represents a 16.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 181,767 shares of company stock valued at $45,610,065. 1.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Tower Semiconductor

Several institutional investors and hedge funds have recently modified their holdings of the business. Hanson & Doremus Investment Management acquired a new position in Tower Semiconductor during the first quarter worth $53,000. Versant Capital Management Inc boosted its stake in shares of Tower Semiconductor by 20.8% during the 3rd quarter. Versant Capital Management Inc now owns 319 shares of the semiconductor company’s stock worth $73,000 after acquiring an additional 55 shares in the last quarter. TD Waterhouse Canada Inc. boosted its stake in shares of Tower Semiconductor by 230.7% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 334 shares of the semiconductor company’s stock worth $82,000 after acquiring an additional 233 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of Tower Semiconductor during the 4th quarter valued at about $103,000. Finally, Western Wealth Management LLC acquired a new position in shares of Tower Semiconductor during the 1st quarter valued at about $141,000. Institutional investors and hedge funds own 70.51% of the company’s stock.

About Tower Semiconductor

Tower Semiconductor Ltd. is an Israel-based specialty semiconductor foundry that manufactures integrated circuits for fabless semiconductor companies, integrated device manufacturers and other technology companies. Rather than selling products under a broad consumer brand, Tower provides wafer fabrication, process technology and manufacturing services tailored to customers’ chip designs.

The company specializes in analog and mixed-signal semiconductors, radio-frequency components, power-management devices, CMOS image sensors and other specialty technologies.