Tower Semiconductor (NASDAQ:TSEM) Shares Down 5.8% – Here’s What Happened

Tower Semiconductor Ltd. (NASDAQ:TSEM) shares were down 5.8% during mid-day trading on Tuesday . The stock traded as low as $206.40 and last traded at $220.6690. Approximately 1,651,132 shares changed hands during trading, a decline of 30% from the average session volume of 2,362,127 shares. The stock had previously closed at $234.32.

More Tower Semiconductor News

Here are the key news stories impacting Tower Semiconductor this week:

• Positive Sentiment: Record quarterly performance: Tower reported record second-quarter revenue and profitability. Adjusted EPS was reported at $0.88, ahead of the $0.67 analyst consensus, while another earnings summary cited GAAP EPS of $0.79 versus expectations of $0.76. Revenue rose 23.7% year over year, and EPS increased substantially from $0.41 in the comparable period. Tower Semiconductor tops second quarter earnings and revenue expectations
• Positive Sentiment: Strong third-quarter outlook: Management guided for third-quarter revenue of $494 million to $546 million, above the approximately $490 million consensus estimate. The guidance implies another potential revenue record and supports expectations for continued growth. Tower Semiconductor beats second-quarter estimates and issues strong Q3 revenue outlook
• Positive Sentiment: Demand and capacity expansion: Tower is benefiting from demand across key business units and is increasing silicon photonics, or SiPho, capacity ahead of its results. This could strengthen its position in communications and other high-growth applications. Tower Semiconductor ramps up SiPho capacity ahead of Q2 results
• Neutral Sentiment: Tower’s balance sheet appears strong, with a low debt-to-equity ratio and substantial liquidity, providing flexibility to fund capacity investments and pursue growth.
• Negative Sentiment: The stock’s price-to-earnings ratio above 100 reflects demanding investor expectations. Even with strong results, any slowdown in growth, margin pressure, or guidance disappointment could increase volatility. Tower Semiconductor: Excellent Fundamentals, Demanding Expectations

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Susquehanna boosted their target price on shares of Tower Semiconductor from $180.00 to $330.00 and gave the company a “positive” rating in a research note on Thursday, May 14th. Benchmark restated a “buy” rating on shares of Tower Semiconductor in a research report on Wednesday, July 15th. Wedbush lifted their price target on shares of Tower Semiconductor from $140.00 to $300.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Finally, UBS Group reaffirmed a “buy” rating on shares of Tower Semiconductor in a research report on Wednesday, July 15th. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Tower Semiconductor presently has a consensus rating of “Moderate Buy” and an average price target of $276.75.

Tower Semiconductor Price Performance

The company has a market capitalization of $27.42 billion, a P/E ratio of 113.13 and a beta of 0.90. The company has a quick ratio of 4.92, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The business has a 50 day simple moving average of $248.21 and a 200-day simple moving average of $198.38.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Fulcrum Equity Management bought a new position in Tower Semiconductor in the 2nd quarter worth about $313,000. Assenagon Asset Management S.A. raised its holdings in shares of Tower Semiconductor by 4.4% during the second quarter. Assenagon Asset Management S.A. now owns 118,406 shares of the semiconductor company’s stock valued at $30,378,000 after buying an additional 4,965 shares during the last quarter. 180 Wealth Advisors LLC acquired a new position in shares of Tower Semiconductor during the second quarter worth approximately $293,000. Baron Wealth Management LLC grew its holdings in Tower Semiconductor by 19.1% in the 2nd quarter. Baron Wealth Management LLC now owns 2,423 shares of the semiconductor company’s stock worth $632,000 after buying an additional 388 shares in the last quarter. Finally, CoreCap Advisors LLC grew its holdings in Tower Semiconductor by 414.0% in the 2nd quarter. CoreCap Advisors LLC now owns 1,285 shares of the semiconductor company’s stock worth $335,000 after buying an additional 1,035 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.