MACOM Technology Solutions (NASDAQ:MTSI) Stock Price Down 19.2% After Analyst Downgrade

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)’s stock price fell 19.2% on Thursday after Needham & Company LLC lowered their price target on the stock from $410.00 to $300.00. Needham & Company LLC currently has a buy rating on the stock. MACOM Technology Solutions traded as low as $189.24 and last traded at $188.2620. Approximately 1,112,786 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 1,468,532 shares. The stock had previously closed at $233.13.

MTSI has been the topic of a number of other reports. Zacks Research raised MACOM Technology Solutions from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 24th. Benchmark started coverage on MACOM Technology Solutions in a report on Thursday, August 13th. They issued a “buy” rating and a $375.00 price target for the company. Raymond James Financial upgraded MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $300.00 price objective for the company in a research note on Tuesday, October 27th. Weiss Ratings downgraded MACOM Technology Solutions from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, August 21st. Finally, BMO Capital Markets raised MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $335.00 target price on the stock in a research report on Friday, September 18th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $329.62.

Insider Transactions at MACOM Technology Solutions

In other news, COO Robert Dennehy sold 252 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $275.20, for a total value of $69,350.40. Following the sale, the chief operating officer owned 12,758 shares in the company, valued at approximately $3,511,001.60. This represents a 1.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John Kober sold 1,027 shares of the company’s stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $236.60, for a total transaction of $242,988.20. Following the completion of the sale, the chief financial officer owned 34,405 shares in the company, valued at approximately $8,140,223. This trade represents a 2.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 9,321 shares of company stock valued at $2,917,644. Insiders own 0.36% of the company’s stock.

Key Stories Impacting MACOM Technology Solutions

Here are the key news stories impacting MACOM Technology Solutions this week:

• Positive Sentiment: Fiscal Q4 adjusted earnings were $2.09 per share versus the $2.00 consensus estimate, while revenue of $424.82 million exceeded the $420.35 million estimate and increased 62.6% from a year earlier. Zacks earnings report
• Neutral Sentiment: MACOM also provided fiscal Q1 guidance, but the supplied report details do not include the outlook figures, making it difficult to assess how they compared with expectations. Fiscal Q4 results and Q1 guidance
• Negative Sentiment: Despite the earnings beat, reports noted that the stock dropped following the results, indicating investors may have been focused on forward expectations or other concerns. Needham cut its price target from $410 to $300, though it maintained a Buy rating. Report on the post-earnings stock decline Needham analyst rating

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Janus Henderson Group PLC increased its holdings in shares of MACOM Technology Solutions by 15.5% in the 1st quarter. Janus Henderson Group PLC now owns 784,118 shares of the semiconductor company’s stock valued at $174,109,000 after acquiring an additional 105,032 shares during the last quarter. Jupiter Topco LLC bought a new position in MACOM Technology Solutions during the second quarter worth $256,612,000. Bank of America Corp DE bought a new position in MACOM Technology Solutions during the second quarter worth $247,732,000. Bank of New York Mellon Corp acquired a new position in MACOM Technology Solutions in the second quarter worth $204,593,000. Finally, Allspring Global Investments Holdings LLC boosted its holdings in MACOM Technology Solutions by 22.7% in the third quarter. Allspring Global Investments Holdings LLC now owns 444,130 shares of the semiconductor company’s stock worth $133,963,000 after purchasing an additional 82,068 shares during the period. Institutional investors own 76.14% of the company’s stock.

MACOM Technology Solutions Trading Down 14.6%

The firm’s 50 day simple moving average is $273.90 and its two-hundred day simple moving average is $283.02. The company has a quick ratio of 1.78, a current ratio of 2.34 and a debt-to-equity ratio of 0.04. The stock has a market cap of $15.20 billion, a P/E ratio of 64.08, a price-to-earnings-growth ratio of 0.77 and a beta of 1.82.

MACOM Technology Solutions (NASDAQ:MTSI) last announced its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $2.09 earnings per share for the quarter, beating analysts’ consensus estimates of $2.00 by $0.09. MACOM Technology Solutions had a net margin of 20.70% and a return on equity of 17.82%. The business had revenue of $424.82 million during the quarter, compared to the consensus estimate of $420.35 million. During the same quarter in the prior year, the firm earned $0.94 EPS. The company’s revenue for the quarter was up 62.6% compared to the same quarter last year. As a group, equities research analysts predict that MACOM Technology Solutions Holdings, Inc. will post 4.26 earnings per share for the current fiscal year.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions Holdings, Inc develops and manufactures high-performance semiconductor products for applications involving radio frequency, microwave, millimeter-wave, analog, mixed-signal and optical technologies. Its offerings include integrated circuits, discrete components, modules and semiconductor devices designed to support communications, connectivity and sensing systems.

The company serves markets including telecommunications, data centers, aerospace and defense, industrial, automotive and consumer applications.