Tower Semiconductor (NASDAQ:TSEM) Stock Price Down 15.9% - Here's Why

Tower Semiconductor Ltd. (NASDAQ:TSEM) saw a significant drop in its stock price, declining by 15.9% during trading on Monday. The stock traded as low as $46.10 before settling at $46.03. In total, around 925,000 shares changed hands, which represents a 46% increase from its average daily volume of 633,497 shares. Previously, the stock had closed at $54.74.

Wall Street Analysts Forecast Growth

A number of research analysts have recently provided insights into TSEM's stock performance. Susquehanna raised its price target for Tower Semiconductor shares from $55.00 to $60.00, assigning the company a "positive" rating on November 14. Similarly, Craig Hallum increased its price target from $54.00 to $60.00 with a rating of "buy" on the same date. However, StockNews.com downgraded the stock from a "buy" to a "hold" rating on November 12. Meanwhile, Benchmark reaffirmed a "buy" rating with a target price of $55.00. Currently, one analyst rates the stock as a hold, while three analysts rate it as a buy. According to MarketBeat, TSEM holds an average rating of "Moderate Buy" with an average price target of $58.33.

Tower Semiconductor Stock Performance

Tower Semiconductor has displayed notable financial metrics, including a quick ratio of 4.89, a current ratio of 5.82, and a low debt-to-equity ratio of 0.05. Its 50-day simple moving average is $50.52, and the 200-day simple moving average stands at $45.28. The company's market capitalization is reported at $5.19 billion, with a PE ratio of 25.33 and a beta of 0.89.

The semiconductor company published its earnings results on November 13, reporting earnings per share (EPS) of $0.57 for the quarter, exceeding analyst expectations of $0.45 by $0.12. Tower Semiconductor achieved a return on equity of 8.22% with a net margin of 14.75%. It reported revenues of $370.50 million, slightly surpassing analyst estimates of $370.30 million. This represents a 3.4% year-over-year increase in revenue, compared to $0.47 EPS from the same quarter last year. Analysts predict that Tower Semiconductor will realize approximately 1.77 EPS for the ongoing fiscal year.

Hedge Funds Weigh In On Tower Semiconductor

Recent changes in hedge funds and institutional investor positions have also impacted Tower Semiconductor's stock. Transcendent Capital Group LLC acquired a new stake during the third quarter worth about $27,000. USA Financial Formulas also bought new shares valued at $38,000 in the same quarter. R Squared Ltd invested approximately $61,000 in the fourth quarter. Moreover, Blue Trust Inc. expanded its position in Tower Semiconductor by 319.3% during the third quarter and now reportedly holds 1,807 shares valued at $80,000. Signaturefd LLC also increased its stake by 21.1% during the third quarter, owning 2,472 shares valued at $109,000. Overall, institutional investors presently control 70.51% of Tower Semiconductor's stock.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd. operates as an independent semiconductor foundry focusing on specialty process technologies for manufacturing analog intensive mixed-signal semiconductor devices. The company has locations in Israel, the United States, Japan, Europe, and beyond. It offers various customizable process technologies such as SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS.

Tower, Semiconductor, Stocks