Tower Semiconductor (NASDAQ:TSEM) Trading Down 9.6% – Should You Sell?

Tower Semiconductor Ltd. (NASDAQ:TSEM)’s share price dropped 9.6% during trading on Tuesday . The stock traded as low as $241.83 and last traded at $238.5080. 530,787 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 2,354,208 shares. The stock had previously closed at $263.73.

Wall Street Analyst Weigh In

TSEM has been the topic of several recent research reports. Susquehanna lifted their price target on shares of Tower Semiconductor from $180.00 to $330.00 and gave the stock a “positive” rating in a research report on Thursday, May 14th. Bank of America began coverage on Tower Semiconductor in a research report on Friday, August 7th. They set a “buy” rating and a $367.00 target price on the stock. National Bank Financial raised Tower Semiconductor to a “buy” rating in a report on Friday, August 7th. Wedbush lifted their price target on Tower Semiconductor from $140.00 to $300.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. Finally, UBS Group restated a “buy” rating on shares of Tower Semiconductor in a report on Wednesday, July 15th. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $294.80.

Tower Semiconductor Trading Down 5.9%

The firm has a market cap of $25.47 billion, a price-to-earnings ratio of 89.51 and a beta of 0.90. The company has a 50-day moving average price of $245.15 and a 200 day moving average price of $208.09. The company has a quick ratio of 4.31, a current ratio of 4.91 and a debt-to-equity ratio of 0.04.

Tower Semiconductor (NASDAQ:TSEM) last issued its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $0.88 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.12. The business had revenue of $460.08 million for the quarter, compared to the consensus estimate of $454.68 million. Tower Semiconductor had a return on equity of 9.83% and a net margin of 16.94%.Tower Semiconductor’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.41 earnings per share. As a group, research analysts anticipate that Tower Semiconductor Ltd. will post 3.57 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Tower Semiconductor news, CEO Russell Craig Ellwanger sold 104,226 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $248.34, for a total value of $25,883,484.84. Following the transaction, the chief executive officer owned 526,788 shares in the company, valued at approximately $130,822,531.92. This represents a 16.52% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Tower Semiconductor

Hedge funds have recently modified their holdings of the stock. Covestor Ltd boosted its position in Tower Semiconductor by 10.8% during the fourth quarter. Covestor Ltd now owns 793 shares of the semiconductor company’s stock valued at $93,000 after purchasing an additional 77 shares during the last quarter. Silverleafe Capital Partners LLC increased its position in Tower Semiconductor by 3.0% in the 2nd quarter. Silverleafe Capital Partners LLC now owns 2,860 shares of the semiconductor company’s stock worth $745,000 after purchasing an additional 84 shares during the last quarter. Mackenzie Financial Corp raised its stake in shares of Tower Semiconductor by 2.6% during the 3rd quarter. Mackenzie Financial Corp now owns 5,053 shares of the semiconductor company’s stock worth $359,000 after purchasing an additional 127 shares in the last quarter. Evergreen Capital Management LLC raised its stake in shares of Tower Semiconductor by 2.6% during the 4th quarter. Evergreen Capital Management LLC now owns 5,118 shares of the semiconductor company’s stock worth $601,000 after purchasing an additional 131 shares in the last quarter. Finally, Mariner LLC raised its stake in shares of Tower Semiconductor by 2.4% during the 3rd quarter. Mariner LLC now owns 8,815 shares of the semiconductor company’s stock worth $637,000 after purchasing an additional 207 shares in the last quarter. 70.51% of the stock is owned by institutional investors and hedge funds.

Tower Semiconductor Company Profile

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company’s technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.