Microsemi Corporation (NASDAQ:MSCC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The brokerage presently has a $55.00 target price on the semiconductor company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 12.50% from the stock’s current price.

According to Zacks, “Microsemi Corporation is an OEM of a broad range of high-reliability and analog/mixed signal integrated circuits. The third-quarter fiscal 2017 non-GAAP earnings beat the Zacks Consensus Estimate while revenues were in line with the same. The company's focus on improving product mix, operational efficiency, and consolidation are driving revenues and margins through 2017. Moreover, we have confidence in the company's strategic positioning, strong fundamentals and growth prospects. Microsemi's scope for margin expansion and decent balance sheet are the other positives. However, pockets of weakness related to product transition at medical customers, push-out of some communications spending in China and a softer oil & gas market continue to impact revenues. Over the last one year, the stock has underperformed the industry it belongs to.”

Other analysts also recently issued research reports about the stock. Susquehanna Bancshares Inc set a $70.00 price target on shares of Microsemi Corporation and gave the company a “buy” rating in a report on Friday, July 28th. TheStreet raised shares of Microsemi Corporation from a “c+” rating to a “b+” rating in a report on Thursday, April 27th. Royal Bank Of Canada downgraded shares of Microsemi Corporation from a “top pick” rating to an “outperform” rating and reduced their price target for the company from $64.00 to $58.00 in a report on Wednesday, June 14th. KeyCorp began coverage on shares of Microsemi Corporation in a research note on Monday, July 24th. They set an “overweight” rating and a $61.00 price objective on the stock. Finally, BMO Capital Markets reissued a “buy” rating and set a $62.00 price objective on shares of Microsemi Corporation in a research note on Thursday, July 20th. Four analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. Microsemi Corporation presently has an average rating of “Buy” and a consensus target price of $58.00.

Microsemi Corporation (MSCC) traded up 0.02% on Friday, reaching $48.90. 193,952 shares of the company’s stock were exchanged. The firm has a 50 day moving average of $50.69 and a 200-day moving average of $50.63. The company has a market cap of $5.66 billion, a P/E ratio of 49.49 and a beta of 1.16. Microsemi Corporation has a 12-month low of $37.11 and a 12-month high of $57.97.

Microsemi Corporation (NASDAQ:MSCC) last announced its quarterly earnings results on Thursday, July 27th. The semiconductor company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.18. Microsemi Corporation had a net margin of 6.90% and a return on equity of 19.91%. The company had revenue of $458.10 million for the quarter, compared to the consensus estimate of $457.87 million. During the same quarter in the prior year, the firm earned $0.73 earnings per share. The company’s revenue for the quarter was up 6.2% compared to the same quarter last year. Equities analysts expect that Microsemi Corporation will post $3.84 EPS for the current fiscal year.

Microsemi Corporation announced that its board has initiated a stock repurchase program on Thursday, July 27th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the semiconductor company to reacquire up to 43% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

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In related news, Chairman James J. Peterson sold 8,800 shares of the firm’s stock in a transaction on Tuesday, May 23rd. The shares were sold at an average price of $47.93, for a total transaction of $421,784.00. Following the completion of the sale, the chairman now directly owns 175,781 shares of the company’s stock, valued at approximately $8,425,183.33. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP David Goren sold 8,464 shares of the firm’s stock in a transaction on Friday, June 2nd. The shares were sold at an average price of $51.36, for a total transaction of $434,711.04. Following the sale, the senior vice president now directly owns 22,320 shares of the company’s stock, valued at $1,146,355.20. The disclosure for this sale can be found here. Insiders sold 30,108 shares of company stock valued at $1,517,717 in the last three months. Company insiders own 0.57% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Oppenheimer Asset Management Inc. purchased a new stake in Microsemi Corporation during the first quarter worth $113,000. Dubuque Bank & Trust Co. raised its stake in Microsemi Corporation by 3.1% in the second quarter. Dubuque Bank & Trust Co. now owns 3,071 shares of the semiconductor company’s stock worth $144,000 after buying an additional 93 shares during the last quarter. Flinton Capital Management LLC raised its stake in Microsemi Corporation by 5.3% in the first quarter. Flinton Capital Management LLC now owns 3,184 shares of the semiconductor company’s stock worth $164,000 after buying an additional 160 shares during the last quarter. BTC Capital Management Inc. purchased a new stake in Microsemi Corporation during the first quarter worth $202,000. Finally, Quotient Investors LLC purchased a new stake in Microsemi Corporation during the first quarter worth $206,000. 99.02% of the stock is owned by institutional investors and hedge funds.

About Microsemi Corporation

Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets.

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Analyst Recommendations for Microsemi Corporation (NASDAQ:MSCC)

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