Amkor Technology (NASDAQ:AMKR) Shares Gap Up – What’s Next?

Amkor Technology, Inc. (NASDAQ:AMKR)’s share price gapped up before the market opened on Tuesday. The stock had previously closed at $36.81, but opened at $38.58. Amkor Technology shares last traded at $38.7820, with a volume of 1,689,331 shares trading hands.

More Amkor Technology News

Here are the key news stories impacting Amkor Technology this week:

• Positive Sentiment: Improved profitability and computing demand: Third-quarter revenue was $1.99 billion and EPS was $0.76, below estimates of approximately $2.04 billion and $0.78. However, gross margin expanded to 18.3%, operating margin reached 11.3% and net income increased to $191 million from $128 million a year earlier. Computing and automotive revenue reached records, helping offset weaker communications demand. Amkor Technology Stock Is Gaining Tuesday: What’s Going On?
• Positive Sentiment: AI expansion supports the growth outlook: Management highlighted AI-driven computing growth, advanced-packaging momentum and a planned $12 billion Arizona expansion. Amkor’s reported relationships with NVIDIA and TSMC, along with a separate $3 billion AI packaging opportunity, are reinforcing the longer-term investment case. Amkor Q3 Earnings Call Highlights AI Growth and Capacity Expansion
• Positive Sentiment: Analysts still see substantial potential: Needham maintained a “buy” rating with a $55 target, while Morgan Stanley retained an “equal weight” rating and a $63 target. Although both targets were reduced, they remain well above the recent share price. Needham analyst recommendation
• Neutral Sentiment: Mixed near-term outlook: Advanced packaging and computing demand are improving, but smartphone and broader communications weakness could pressure near-term results and guidance.
• Negative Sentiment: Results missed expectations: The quarterly EPS and revenue shortfalls, together with reports that guidance fell below estimates, remain significant risks for investors. Amkor Technology slips as Q3 results and guidance miss estimates
• Negative Sentiment: Bearish positioning signals caution: Reported insider activity showed selling without purchases during the past six months, while put-option volume was substantially above average ahead of earnings.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AMKR. Weiss Ratings raised Amkor Technology from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, July 31st. Bank of America initiated coverage on Amkor Technology in a report on Thursday, August 27th. They issued a “buy” rating and a $70.00 target price for the company. UBS Group upgraded Amkor Technology from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $80.00 to $90.00 in a research note on Friday, July 24th. Zacks Research cut Amkor Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Finally, Needham & Company LLC cut their price objective on Amkor Technology from $90.00 to $55.00 and set a “buy” rating for the company in a report on Tuesday. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Amkor Technology has an average rating of “Moderate Buy” and a consensus price target of $60.00.

Amkor Technology Trading Up 6.0%

The business has a 50 day simple moving average of $49.07 and a 200 day simple moving average of $57.29. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.17 and a quick ratio of 1.91. The company has a market cap of $9.69 billion, a price-to-earnings ratio of 17.44, a price-to-earnings-growth ratio of 0.48 and a beta of 2.21.

Amkor Technology (NASDAQ:AMKR) last announced its earnings results on Monday, October 26th. The semiconductor company reported $0.76 earnings per share for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.02). Amkor Technology had a net margin of 7.45% and a return on equity of 12.27%. The business had revenue of $1.99 billion during the quarter, compared to analyst estimates of $2.04 billion. During the same quarter last year, the business posted $0.51 earnings per share. The business’s quarterly revenue was up .2% compared to the same quarter last year. As a group, equities analysts forecast that Amkor Technology, Inc. will post 2.60 EPS for the current year.

Amkor Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 2nd were given a $0.0835 dividend. This represents a $0.33 annualized dividend and a yield of 0.9%. The ex-dividend date was Wednesday, September 2nd. Amkor Technology’s dividend payout ratio (DPR) is presently 14.80%.

Insider Transactions at Amkor Technology

In other Amkor Technology news, Director Douglas Alexander sold 5,000 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $55.00, for a total value of $275,000.00. Following the completion of the transaction, the director directly owned 29,109 shares of the company’s stock, valued at approximately $1,600,995. The trade was a 14.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Megan Faust sold 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $46.92, for a total transaction of $46,920.00. Following the transaction, the chief financial officer owned 133,105 shares in the company, valued at $6,245,286.60. The trade was a 0.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 46,221 shares of company stock worth $2,538,507. Corporate insiders own 26.40% of the company’s stock.

Institutional Trading of Amkor Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMKR. CoreCap Advisors LLC grew its position in shares of Amkor Technology by 56.4% during the 2nd quarter. CoreCap Advisors LLC now owns 438 shares of the semiconductor company’s stock worth $38,000 after buying an additional 158 shares during the period. Clearstead Trust LLC acquired a new stake in Amkor Technology during the 2nd quarter worth $43,000. Ceredex Value Advisors LLC acquired a new stake in Amkor Technology during the 2nd quarter worth $47,000. Solstein Capital LLC acquired a new stake in Amkor Technology during the 2nd quarter worth $52,000. Finally, Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Amkor Technology during the 2nd quarter valued at $54,000. 42.76% of the stock is currently owned by institutional investors and hedge funds.

About Amkor Technology

Amkor Technology, Inc is a provider of outsourced semiconductor packaging and test services. The company helps semiconductor manufacturers and electronics companies assemble, package and test integrated circuits before they are incorporated into finished electronic products.

Amkor’s services include wafer bumping, wafer-level packaging, flip-chip packaging, system-in-package solutions, fan-out packaging, leadframe and laminate-based packaging, and semiconductor testing. Its products and services support applications including mobile and consumer electronics, communications, automotive, computing, industrial equipment, and memory devices.

Founded in 1968, Amkor has grown into a global semiconductor supply-chain partner with manufacturing and testing operations across regions including Asia, Europe and the United States.