TD Cowen Initiates Coverage on MACOM Technology with Buy Rating

TD Cowen has initiated coverage on shares of MACOM Technology Solutions (NASDAQ: MTSI), issuing a buy rating and a price target of $150.00. This announcement came in a research note published on August 7, 2023, marking a significant endorsement for the semiconductor company.

Several other research firms have also recently reevaluated MACOM Technology Solutions’ stock. On July 20, Wall Street Zen upgraded the company from a “hold” to a “buy” rating. Following this, on July 7, Truist Financial increased its price target from $136.00 to $154.00, maintaining a “buy” rating. Stifel Nicolaus echoed this sentiment on July 18, raising its price objective from $140.00 to $155.00. Additionally, Bank of America adjusted its price target from $140.00 to $160.00 on June 24, also granting a “buy” rating. Meanwhile, Zacks Research moved MACOM from a “strong sell” to a “hold” rating on August 20.

The consensus among analysts indicates a broad endorsement of MACOM Technology Solutions, with one research analyst rating the stock as a Strong Buy, eight recommending a Buy, two advising Hold, and one suggesting Sell. According to MarketBeat.com, the average rating stands at “Moderate Buy,” with a consensus price target of $146.56.

Quarterly Performance and Financial Outlook

MACOM Technology Solutions reported its quarterly earnings on August 7, posting earnings per share of $0.90. This figure exceeds analysts’ expectations, which were set at $0.89. The company achieved a positive return on equity of 14.02% and recorded a net margin of -7.71%. Revenue for the quarter reached $252.08 million, surpassing analyst estimates of $249.89 million. This marks a robust year-over-year revenue increase of 32.3%, compared to $0.66 earnings per share recorded during the same quarter last year.

Looking ahead, MACOM has projected its Q4 2025 guidance at an earnings per share range of $0.910 to $0.950. Analysts anticipate the company will post earnings of $2.43 per share for the current fiscal year.

Insider Transactions and Institutional Activity

In other developments, Director Jihye Whang Rosenband sold 800 shares of MACOM on August 21 at an average price of $123.81, resulting in a total transaction value of $99,048.00. Following this sale, Rosenband retained ownership of 7,189 shares, valued at approximately $890,070.09, reflecting a decline of 10.01% in her holdings.

In a more substantial transaction, major shareholder Susan Ocampo sold 150,000 shares on September 18 at an average price of $133.09, amounting to $19,963,500.00. After the sale, Ocampo held 3,372,186 shares, valued at about $448,804,234.74, a 4.26% reduction in ownership. Data indicates that institutional investors currently own 76.14% of MACOM Technology Solutions.

A number of large investors have recently made moves concerning MACOM’s stock. For instance, Hantz Financial Services Inc. increased its stake in the company by 174.0% during the second quarter, now owning 211 shares valued at $30,000. Other notable investments include Opal Wealth Advisors LLC and Versant Capital Management Inc., which have also acquired stakes in the company.

In summary, MACOM Technology Solutions has garnered significant attention from analysts and investors alike, reflecting confidence in its financial performance and future prospects.