SemiLEDs Receives Sell Rating from StockNews.com Analysts

Financial analysts at StockNews.com have initiated coverage on shares of SemiLEDs (NASDAQ:LEDS) with an outlook that may give investors pause. The advisory firm delivered a report on Wednesday, assigning a 'sell' rating to the stock of the semiconductor company, possibly influencing market perceptions of the LED manufacturer's financial health.

SemiLEDs Stock Performance

The trading session on Wednesday saw SemiLEDs stock opening at a price of $1.57. At this point in time, the market valuation of the company stands at approximately $7.80 million, and its price-to-earnings (P/E) ratio is recorded at -2.80. With a beta of 1.05, the stock exhibits moderate volatility relative to the overall market. The current running average prices over recent periods sit at $1.40 for the past 50 days and $1.53 across a 200-day span. Looking at the broader timeframe, SemiLEDs has experienced a challenging year with values ranging from a low of $1.01 to a high of $3.47. The company also maintains a debt-to-equity ratio at 1.65, revealing more debt relative to its equity than some investors might prefer. Liquid assets are reflected in the current and quick ratios, standing at 0.74 and 0.35 respectively.

Concerning its financial reportage, SemiLEDs announced its latest quarterly earnings on January 12th, posting a loss of $0.12 per share. Quarterly revenue amounted to $1.65 million. Unfortunately, the company's negative net margin of 46.78% and a substantial negative return on equity of 166.93% manifest the challenges it faces.

Hedge Funds and SemiLEDs

Hedge funds have shown varied interest in SemiLEDs. Millennium Management LLC notably augmented its stakes by 113.8% during the last quarter, now owning 29,441 shares. Conversely, Bank of America Corp DE and Citadel Advisors LLC have made new investments in LEDS, with valuations of $59,000 and $29,000 respectively. These moves indicate that while institutional ownership still encompasses a mere 0.65% of the company's equity, some large-scale investors see potential in the company's prospects.

About SemiLEDs

SemiLEDs Corporation has an international footprint, with operations in several leading global markets including the United States, Taiwan, and various European and Asian locations. It specializes in LED technology, from creating and manufacturing LED chips and components to entire LED modules and systems. It also tailors products for specific market sectors, including blue, white, green, and UV LED series. The business strategy extends from serving packagers and distributors of LED chips to delivering finished products for lighting device end-users and original design manufacturers.

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