Zacks Investment Research Downgrades Microsemi Corporation (MSCC) to Sell
Microsemi Corporation (NASDAQ:MSCC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Microsemi Corporation is an OEM of a broad range of high-reliability and analog/mixed signal integrated circuits. Fourth-quarter fiscal 2017 non-GAAP earnings beat the Zacks Consensus Estimate. 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. Year to date, the stock has underperformed the industry it belongs to.”
A number of other equities research analysts have also recently issued reports on the stock. Susquehanna Bancshares Inc set a $70.00 target price on shares of Microsemi Corporation and gave the stock a “buy” rating in a research report on Friday, July 28th. Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of Microsemi Corporation in a research report on Thursday, July 27th. KeyCorp initiated coverage on shares of Microsemi Corporation in a research report on Monday, July 24th. They set an “overweight” rating and a $61.00 target price for the company. BidaskClub upgraded shares of Microsemi Corporation from a “hold” rating to a “buy” rating in a research report on Monday, July 24th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $61.00 target price on shares of Microsemi Corporation in a research report on Friday. Two analysts have rated the stock with a sell rating, two have given a hold rating and nine have assigned a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $61.11.
Microsemi Corporation (NASDAQ:MSCC) remained flat at $$52.62 during trading hours on Tuesday. The stock had a trading volume of 824,100 shares, compared to its average volume of 993,018. The company has a market capitalization of $6,087.30, a P/E ratio of 15.80, a P/E/G ratio of 1.16 and a beta of 1.16. Microsemi Corporation has a 1-year low of $46.08 and a 1-year high of $57.97. The company has a current ratio of 1.92, a quick ratio of 1.29 and a debt-to-equity ratio of 0.87.
Microsemi Corporation (NASDAQ:MSCC) last released its quarterly earnings data on Thursday, November 9th. The semiconductor company reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $1.08 by $0.01. The company had revenue of $475.30 million during the quarter, compared to the consensus estimate of $474.97 million. Microsemi Corporation had a net margin of 9.73% and a return on equity of 20.82%. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the firm earned $0.91 EPS. equities research analysts anticipate that Microsemi Corporation will post 3.62 EPS for the current year.
Microsemi Corporation announced that its board has authorized a stock repurchase plan on Thursday, July 27th that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 43% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.
In other Microsemi Corporation news, CFO John W. Hohener sold 11,638 shares of the firm’s stock in a transaction dated Tuesday, October 10th. The shares were sold at an average price of $52.49, for a total value of $610,878.62. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Paul H. Pickle sold 69,482 shares of the firm’s stock in a transaction dated Tuesday, November 7th. The shares were sold at an average price of $53.71, for a total transaction of $3,731,878.22. Following the completion of the sale, the chief operating officer now owns 88,512 shares of the company’s stock, valued at approximately $4,753,979.52. The disclosure for this sale can be found here. Insiders sold a total of 231,467 shares of company stock valued at $12,340,556 in the last 90 days. Corporate insiders own 0.57% of the company’s stock.
Several large investors have recently modified their holdings of MSCC. Dubuque Bank & Trust Co. grew its position in shares of Microsemi Corporation by 3.1% during the 2nd 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 period. CIBC Asset Management Inc acquired a new stake in shares of Microsemi Corporation during the 3rd quarter worth approximately $203,000. BTC Capital Management Inc. acquired a new stake in shares of Microsemi Corporation during the 3rd quarter worth approximately $214,000. Quantitative Systematic Strategies LLC acquired a new stake in shares of Microsemi Corporation during the 2nd quarter worth approximately $219,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Microsemi Corporation by 9.0% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,793 shares of the semiconductor company’s stock worth $224,000 after buying an additional 395 shares during the period. Institutional investors own 99.84% of the company’s stock.
Microsemi Corporation Company Profile
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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