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

Tower Semiconductor Ltd. (NASDAQ:TSEM) saw its stock price decline by 15.9% on Monday. The shares fell to a low of $46.10 before closing at $46.03. This marked a significant drop from its previous close at $54.74, with volume reaching around 925,000 shares, which is a 46% increase compared to the average daily trading volume of 633,497 shares.

Wall Street Analyst Insights

Analysts have reacted to the recent fluctuation in TSEM's stock. StockNews.com downgraded the company's stock rating from "buy" to "hold" on November 12th. Meanwhile, Craig Hallum raised their price target from $54.00 to $60.00 while maintaining a "buy" rating on November 14th. Similarly, Susquehanna increased their target price from $55.00 to $60.00 and kept a "positive" rating. Benchmark also reaffirmed a "buy" rating, setting a target price of $55.00. Overall, MarketBeat reports that Tower Semiconductor has an average rating of "Moderate Buy" with a consensus price target of $58.33.

Company Financial Overview

Despite the recent downturn, Tower Semiconductor's fundamentals show promise. The company has a very low debt-to-equity ratio of 0.05, a quick ratio of 4.89, and a current ratio of 5.82. With a market capitalization of approximately $4.98 billion, its price-to-earnings ratio stands at 24.40, and its beta is 0.89. The company also has a 50-day moving average price of $50.53 and a 200-day moving average price of $45.22.

In its latest earnings report on November 13th, Tower Semiconductor reported an earnings per share (EPS) of $0.57, exceeding analysts' expectations of $0.45. The firm's net margin was 14.75%, and it generated revenue of $370.50 million during the quarter, slightly above forecasts of $370.30 million. Year-over-year, revenue increased by 3.4%, showing the company's growth potential.

Institutional Activity

Recent movements from institutional investors reflect a mixed response to Tower Semiconductor's stock. Essex Investment Management Co. LLC increased its stake by 7.5% in the third quarter, owning 179,579 shares now valued at $7,948,000. Migdal Insurance & Financial Holdings Ltd. also expanded its holdings by 1.5%, totaling 3,297,806 shares worth $145,961,000 after purchasing additional shares. Notably, Summit Partners Public Asset Management LLC raised its stake by an impressive 1,146.9%, now owning 1,496,315 shares valued at $66,227,000. Barclays PLC significantly increased its holdings by 4,081.2%, resulting in 23,958 shares valued at $1,060,000. Currently, about 70.51% of the stock is owned by institutional investors.

About Tower Semiconductor

Tower Semiconductor Ltd. is recognized as an independent semiconductor foundry that specializes in manufacturing analog-intensive mixed-signal semiconductor devices with operations in multiple regions, including Israel, the United States, Japan, and Europe. The company focuses on offering a range of customizable process technologies, such as SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, and MEMS.

Tower, Stock, Investors