Microsemi Corporation’s (MSCC) “Buy” Rating Reaffirmed at Needham & Company LLC
Needham & Company LLC reissued their buy rating on shares of Microsemi Corporation (NASDAQ:MSCC) in a research note issued to investors on Friday morning. Needham & Company LLC currently has a $61.00 target price on the semiconductor company’s stock.
“MSCC reported in-line F4Q17 results and in-line F1Q18 guidance. More importantly, the company exceeded its $400MM FCF target post PMC acquisition close, generating $420MM in FCF in FY17. The company also beat its gross leverage target of 3.0x by the end of FY17, with gross leverage coming in at 2.9x. Further, MSCC achieved record profitability in F4Q17, with NG GM and NG OM both hitting new highs. We feel strongly the company remains on track to hit its 35% NG OM target. Lastly, management expressed confidence in its long-term 6-8% Y/Y organic growth target, driven by several product cycles. Given management’s solid execution on margins, cash flow generation and deleveraging, combined with demonstrable organic revenue growth, we reiterate our Buy rating and $61 price target.”,” the firm’s analyst commented.
A number of other equities research analysts also recently weighed in on the stock. Zacks Investment Research downgraded shares of Microsemi Corporation from a buy rating to a hold rating in a research note on Monday, August 28th. BMO Capital Markets restated a buy rating and issued a $62.00 price target on shares of Microsemi Corporation in a research note on Thursday, July 20th. KeyCorp initiated coverage on shares of Microsemi Corporation in a research note on Monday, July 24th. They issued an overweight rating and a $61.00 price target on the stock. Finally, BidaskClub upgraded shares of Microsemi Corporation from a hold rating to a buy rating in a research note on Monday, July 24th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and nine have given a buy rating to the company. The company has a consensus rating of Buy and an average target price of $61.11.
Microsemi Corporation (NASDAQ:MSCC) remained flat at $$52.62 during mid-day trading on Friday. 824,100 shares of the stock were exchanged, compared to its average volume of 993,018. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.29 and a current ratio of 1.92. Microsemi Corporation has a 52-week low of $46.08 and a 52-week high of $57.97. The stock has a market capitalization of $6,087.30, a P/E ratio of 15.80, a price-to-earnings-growth ratio of 1.16 and a beta of 1.16.
Microsemi Corporation (NASDAQ:MSCC) last released its earnings results on Thursday, November 9th. The semiconductor company reported $1.09 EPS for the quarter, beating the consensus estimate of $1.08 by $0.01. Microsemi Corporation had a net margin of 9.73% and a return on equity of 20.82%. The firm had revenue of $475.30 million for the quarter, compared to analyst estimates of $474.97 million. During the same period last year, the firm earned $0.91 EPS. The business’s quarterly revenue was up 5.6% compared to the same quarter last year. analysts anticipate that Microsemi Corporation will post 3.62 earnings per share for the current fiscal year.
Microsemi Corporation announced that its board has approved a stock repurchase program on Thursday, July 27th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 43% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.
In related news, COO Paul H. Pickle sold 69,482 shares of Microsemi Corporation stock in a transaction that occurred on Tuesday, November 7th. The shares were sold at an average price of $53.71, for a total transaction of $3,731,878.22. Following the sale, the chief operating officer now directly owns 88,512 shares in the company, valued at approximately $4,753,979.52. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Frederick C. Goerner sold 1,500 shares of Microsemi Corporation stock in a transaction that occurred on Thursday, August 31st. The stock was sold at an average price of $50.12, for a total transaction of $75,180.00. Following the sale, the vice president now owns 60,436 shares in the company, valued at $3,029,052.32. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 231,467 shares of company stock worth $12,340,556. 0.57% of the stock is owned by corporate insiders.
Large investors have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. acquired a new stake in Microsemi Corporation during the 1st quarter worth approximately $113,000. Dubuque Bank & Trust Co. lifted its position in shares of Microsemi Corporation by 3.1% in the 2nd quarter. Dubuque Bank & Trust Co. now owns 3,071 shares of the semiconductor company’s stock worth $144,000 after purchasing an additional 93 shares during the period. CIBC Asset Management Inc acquired a new position in shares of Microsemi Corporation in the 3rd quarter worth approximately $203,000. BTC Capital Management Inc. acquired a new position in shares of Microsemi Corporation in the 3rd quarter worth approximately $214,000. Finally, Quantitative Systematic Strategies LLC acquired a new position in shares of Microsemi Corporation in the 2nd quarter worth approximately $219,000. Institutional investors and hedge funds own 99.84% of the company’s stock.
Microsemi Corporation Company Profile
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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