Microsemi Corporation (MSCC) Downgraded by Zacks Investment Research
Zacks Investment Research downgraded shares of Microsemi Corporation (NASDAQ:MSCC) from a buy rating to a hold rating in a research note published on Monday morning.
According to Zacks, “Microsemi Corporation is an OEM of a broad range of high-reliability and analog/mixed signal integrated circuits. Third-quarter fiscal 2017 non-GAAP earnings beat the Zacks Consensus Estimate while revenues were in line with the same. The company's focus on improving product mix, operational efficiency, and consolidation are driving revenues and margins through 2017. Moreover, we have confidence in the company's strategic positioning, strong fundamentals and growth prospects. Microsemi's scope for margin expansion and decent balance sheet are the other positives. However, pockets of weakness related to product transition at medical customers, push-out of some communications spending in China and a softer oil & gas market continue to impact revenues. Year to date, the stock has underperformed the industry it belongs to.”
A number of other analysts have also recently commented on MSCC. Royal Bank Of Canada cut Microsemi Corporation from a top pick rating to an outperform rating and cut their price objective for the company from $64.00 to $58.00 in a research report on Wednesday, June 14th. Raymond James Financial, Inc. initiated coverage on Microsemi Corporation in a research report on Friday, June 16th. They issued a market perform rating for the company. BidaskClub cut Microsemi Corporation from a hold rating to a sell rating in a research report on Saturday, June 17th. Goldman Sachs Group, Inc. (The) upgraded Microsemi Corporation from a neutral rating to a buy rating and cut their price objective for the company from $54.00 to $53.00 in a research report on Wednesday, July 5th. Finally, BMO Capital Markets restated a buy rating and issued a $62.00 price objective on shares of Microsemi Corporation in a research report on Thursday, July 20th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have given a buy rating to the company’s stock. Microsemi Corporation currently has an average rating of Buy and an average price target of $58.00.
Shares of Microsemi Corporation (NASDAQ:MSCC) opened at 52.60 on Monday. The firm’s 50-day moving average is $49.89 and its 200-day moving average is $49.83. Microsemi Corporation has a one year low of $37.11 and a one year high of $57.97. The stock has a market capitalization of $6.08 billion, a price-to-earnings ratio of 53.24 and a beta of 1.18.
Microsemi Corporation (NASDAQ:MSCC) last posted its quarterly earnings data on Thursday, July 27th. The semiconductor company reported $0.99 EPS for the quarter, beating the Zacks’ consensus estimate of $0.81 by $0.18. The business had revenue of $458.10 million during the quarter, compared to analysts’ expectations of $457.87 million. Microsemi Corporation had a return on equity of 19.91% and a net margin of 6.90%. The business’s revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.73 earnings per share. Equities research analysts forecast that Microsemi Corporation will post $3.84 EPS for the current year.
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Microsemi Corporation announced that its Board of Directors has approved a stock buyback program on Thursday, July 27th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the semiconductor company to purchase up to 43% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.
In related news, insider Dennis R. Leibel sold 3,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 2nd. The stock was sold at an average price of $52.46, for a total transaction of $157,380.00. Following the completion of the sale, the insider now directly owns 7,369 shares in the company, valued at $386,577.74. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul F. Folino sold 1,650 shares of the business’s stock in a transaction that occurred on Thursday, August 3rd. The stock was sold at an average price of $52.57, for a total value of $86,740.50. Following the sale, the director now owns 1,070 shares of the company’s stock, valued at $56,249.90. The disclosure for this sale can be found here. Insiders have sold 11,650 shares of company stock valued at $600,076 over the last quarter. 0.57% of the stock is owned by company insiders.
A number of large investors have recently modified their holdings of the business. Trexquant Investment LP grew its holdings in Microsemi Corporation by 0.4% in the 2nd quarter. Trexquant Investment LP now owns 7,800 shares of the semiconductor company’s stock valued at $365,000 after buying an additional 34 shares in the last quarter. Somerset Trust Co grew its holdings in Microsemi Corporation by 0.4% in the 2nd quarter. Somerset Trust Co now owns 11,343 shares of the semiconductor company’s stock valued at $531,000 after buying an additional 47 shares in the last quarter. Dubuque Bank & Trust Co. grew its holdings in Microsemi Corporation by 3.1% in the 2nd quarter. Dubuque Bank & Trust Co. now owns 3,071 shares of the semiconductor company’s stock valued at $144,000 after buying an additional 93 shares in the last quarter. Pacer Advisors Inc. grew its holdings in Microsemi Corporation by 1.0% in the 2nd quarter. Pacer Advisors Inc. now owns 14,718 shares of the semiconductor company’s stock valued at $689,000 after buying an additional 141 shares in the last quarter. Finally, Teacher Retirement System of Texas grew its holdings in Microsemi Corporation by 1.6% in the 2nd quarter. Teacher Retirement System of Texas now owns 9,184 shares of the semiconductor company’s stock valued at $430,000 after buying an additional 145 shares in the last quarter. Institutional investors own 98.47% of the company’s stock.
About Microsemi Corporation
Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets.
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