MACOM Technology Solutions (NASDAQ:MTSI) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of MACOM Technology Solutions (NASDAQ:MTSI) from a hold rating to a buy rating in a research report released on Tuesday morning, Zacks.com reports. The brokerage currently has $21.00 price target on the semiconductor company’s stock.

According to Zacks, “MACOM reported weak fiscal third quarter results due to softness in the end-markets. Nevertheless, the company remains confident about its diverse product portfolio and strong exposure to multiple end markets. Further, the company remains focused on cost control, R&D investments, technology road maps, planning and organizational structure which are expected to strengthen its financial performance in the near term. Notably, shares of MACOM have outperformed the industry it belongs to on a year-to-date basis. However, suspension of shipments to Huawei remains a major concern as it will continue to affect MACOM’s sales to not only Huawei but also its affiliates. Further, integration issues and leveraged balance sheet remain overhangs for the company. Also, the ongoing headwinds in China are major concerns.”

Other equities research analysts also recently issued reports about the stock. Northland Securities reissued a buy rating and issued a $22.50 price objective on shares of MACOM Technology Solutions in a research report on Friday, August 2nd. Piper Jaffray Companies raised shares of MACOM Technology Solutions from a neutral rating to an overweight rating and increased their price objective for the company from $14.00 to $21.00 in a research report on Wednesday, July 17th. Craig Hallum raised shares of MACOM Technology Solutions from a hold rating to a buy rating and set a $25.00 price objective on the stock in a research report on Wednesday, May 8th. Stifel Nicolaus raised shares of MACOM Technology Solutions from a sell rating to a hold rating in a research report on Thursday, May 16th. Finally, Evercore ISI downgraded shares of MACOM Technology Solutions from an outperform rating to an inline rating in a research report on Thursday, April 25th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $18.28.

Shares of NASDAQ:MTSI opened at $20.14 on Tuesday. MACOM Technology Solutions has a 52 week low of $12.33 and a 52 week high of $23.71. The company’s 50 day moving average is $18.38 and its two-hundred day moving average is $16.74. The company has a debt-to-equity ratio of 2.29, a current ratio of 4.37 and a quick ratio of 3.20.

MACOM Technology Solutions (NASDAQ:MTSI) last announced its quarterly earnings data on Thursday, August 1st. The semiconductor company reported ($0.42) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.55) by $0.13. MACOM Technology Solutions had a negative net margin of 76.27% and a negative return on equity of 7.79%. The company had revenue of $108.30 million for the quarter, compared to the consensus estimate of $108.20 million. During the same period in the prior year, the firm posted $0.13 EPS. The company’s quarterly revenue was down 21.5% compared to the same quarter last year. As a group, research analysts forecast that MACOM Technology Solutions will post -0.76 earnings per share for the current year.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Chartwell Investment Partners LLC purchased a new position in shares of MACOM Technology Solutions in the 2nd quarter valued at $1,680,000. Needham Investment Management LLC grew its position in shares of MACOM Technology Solutions by 700.0% in the 2nd quarter. Needham Investment Management LLC now owns 120,000 shares of the semiconductor company’s stock valued at $1,816,000 after buying an additional 105,000 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. grew its position in MACOM Technology Solutions by 7.5% during the 2nd quarter. Ladenburg Thalmann Financial Services Inc. now owns 14,448 shares of the semiconductor company’s stock worth $220,000 after purchasing an additional 1,007 shares during the last quarter. Yiheng Capital LLC grew its position in MACOM Technology Solutions by 5.1% during the 2nd quarter. Yiheng Capital LLC now owns 3,186,673 shares of the semiconductor company’s stock worth $48,214,000 after purchasing an additional 153,600 shares during the last quarter. Finally, Schroder Investment Management Group purchased a new position in MACOM Technology Solutions during the 2nd quarter worth $8,843,000. 68.67% of the stock is currently owned by hedge funds and other institutional investors.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions Holdings, Inc, together with its subsidiaries, designs and manufactures analog radio frequency (RF), microwave, millimeterwave, and lightwave spectrum products in the United States, China, the Asia Pacific, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems for approximately 60 product lines.

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Analyst Recommendations for MACOM Technology Solutions (NASDAQ:MTSI)

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