Microsemi Corporation (NASDAQ:MSCC) Raised to Buy at Zacks Investment Research
Microsemi Corporation (NASDAQ:MSCC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The brokerage presently has a $60.00 price objective on the semiconductor company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 15.87% 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. 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 outperformed the industry it belongs to.”
A number of other equities analysts have also commented on MSCC. Needham & Company LLC cut their price objective on shares of Microsemi Corporation from $63.00 to $61.00 and set a “buy” rating on the stock in a report on Friday, April 28th. TheStreet upgraded shares of Microsemi Corporation from a “c+” rating to a “b+” rating in a report on Thursday, April 27th. Royal Bank Of Canada reiterated a “top pick” rating and issued a $64.00 price objective on shares of Microsemi Corporation in a report on Monday, May 22nd. Raymond James Financial, Inc. initiated coverage on shares of Microsemi Corporation in a report on Friday, June 16th. They issued a “market perform” rating on the stock. Finally, BidaskClub lowered shares of Microsemi Corporation from a “hold” rating to a “sell” rating in a report on Saturday, June 17th. Four investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus target price of $58.42.
Microsemi Corporation (MSCC) traded down 0.67% during trading on Wednesday, reaching $51.78. The company had a trading volume of 727,153 shares. Microsemi Corporation has a 52-week low of $37.11 and a 52-week high of $57.97. The stock has a 50 day moving average price of $49.80 and a 200-day moving average price of $50.95. The company has a market capitalization of $5.99 billion, a PE ratio of 52.41 and a beta of 1.16.
Microsemi Corporation (NASDAQ:MSCC) last issued its quarterly earnings data on Thursday, July 27th. The semiconductor company reported $0.99 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.18. Microsemi Corporation had a net margin of 6.90% and a return on equity of 19.91%. The firm had revenue of $458.10 million for the quarter, compared to analyst estimates of $457.87 million. During the same quarter in the previous year, the business posted $0.73 EPS. The firm’s revenue was up 6.2% compared to the same quarter last year. On average, equities research analysts anticipate that Microsemi Corporation will post $3.84 earnings per share for the current fiscal year.
Microsemi Corporation announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 27th that authorizes the company to repurchase $250.00 million in outstanding 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 an indication that the company’s board believes its stock is undervalued.
In other news, Director Thomas Robert Anderson sold 2,000 shares of the company’s stock in a transaction dated Wednesday, June 7th. The shares were sold at an average price of $50.56, for a total value of $101,120.00. Following the sale, the director now owns 16,113 shares in the company, valued at approximately $814,673.28. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Chairman James J. Peterson sold 8,800 shares of the company’s stock in a transaction dated Tuesday, May 9th. The shares were sold at an average price of $48.79, for a total transaction of $429,352.00. Following the completion of the sale, the chairman now owns 192,111 shares in the company, valued at approximately $9,373,095.69. The disclosure for this sale can be found here. In the last 90 days, insiders sold 37,558 shares of company stock worth $1,863,142. Company insiders own 0.57% of the company’s stock.
Several large investors have recently made changes to their positions in the stock. BlackRock Inc. increased its stake in shares of Microsemi Corporation by 24,626.0% in the first quarter. BlackRock Inc. now owns 12,207,460 shares of the semiconductor company’s stock worth $629,050,000 after buying an additional 12,158,089 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Microsemi Corporation by 5.9% in the first quarter. Vanguard Group Inc. now owns 9,717,771 shares of the semiconductor company’s stock worth $500,758,000 after buying an additional 542,772 shares in the last quarter. State Street Corp increased its stake in shares of Microsemi Corporation by 3.4% in the first quarter. State Street Corp now owns 3,816,410 shares of the semiconductor company’s stock worth $196,656,000 after buying an additional 127,094 shares in the last quarter. Bank of New York Mellon Corp increased its stake in shares of Microsemi Corporation by 14.0% in the first quarter. Bank of New York Mellon Corp now owns 3,021,324 shares of the semiconductor company’s stock worth $155,690,000 after buying an additional 370,360 shares in the last quarter. Finally, Wells Fargo & Company MN increased its stake in shares of Microsemi Corporation by 46.8% in the first quarter. Wells Fargo & Company MN now owns 2,648,870 shares of the semiconductor company’s stock worth $136,496,000 after buying an additional 844,586 shares in the last quarter.
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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