Microsemi Corporation (MSCC) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Microsemi Corporation (NASDAQ:MSCC) from a hold rating to a buy rating in a report published on Tuesday morning. The firm currently has $55.00 price objective on the semiconductor company’s stock.
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 underperformed the industry it belongs to.”
Other research analysts have also recently issued reports about the company. Susquehanna Bancshares Inc set a $70.00 target price on Microsemi Corporation and gave the stock a buy rating in a research report on Friday, July 28th. Royal Bank Of Canada cut Microsemi Corporation from a top pick rating to an outperform rating and reduced their target price for the stock from $64.00 to $58.00 in a research report on Wednesday, June 14th. KeyCorp began coverage on Microsemi Corporation in a research report on Monday, July 24th. They issued an overweight rating and a $61.00 target price for the company. BMO Capital Markets reaffirmed a buy rating and issued a $62.00 target price on shares of Microsemi Corporation in a research report on Thursday, July 20th. Finally, Oppenheimer Holdings, Inc. reaffirmed a hold rating on shares of Microsemi Corporation in a research report on Thursday, July 27th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and fourteen have given a buy rating to the stock. The company currently has a consensus rating of Buy and an average price target of $58.00.
Microsemi Corporation (NASDAQ MSCC) opened at 50.69 on Tuesday. The company has a market cap of $5.86 billion, a price-to-earnings ratio of 51.31 and a beta of 1.16. The stock’s 50 day moving average is $50.91 and its 200 day moving average is $50.29. Microsemi Corporation has a 52-week low of $37.11 and a 52-week high of $57.97.
Microsemi Corporation (NASDAQ:MSCC) last issued its earnings results on Thursday, July 27th. The semiconductor company reported $0.99 EPS for the quarter, topping the consensus estimate of $0.81 by $0.18. The firm had revenue of $458.10 million during the quarter, compared to analysts’ expectations of $457.87 million. Microsemi Corporation had a return on equity of 19.91% and a net margin of 6.90%. Microsemi Corporation’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the business earned $0.73 earnings per share. On average, analysts predict that Microsemi Corporation will post $3.84 earnings per share for the current fiscal year.
Microsemi Corporation announced that its Board of Directors has authorized a share buyback plan on Thursday, July 27th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the semiconductor company to purchase up to 43% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.
In other news, insider Dennis R. Leibel sold 3,000 shares of the firm’s stock in a transaction on Wednesday, August 2nd. The stock was sold at an average price of $52.46, for a total value of $157,380.00. Following the completion of the sale, the insider now directly owns 7,369 shares in the company, valued at $386,577.74. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Thomas Robert Anderson sold 2,000 shares of the firm’s stock in a transaction on Wednesday, June 7th. The shares were sold at an average price of $50.56, for a total value of $101,120.00. Following the completion of the sale, the director now owns 16,113 shares of the company’s stock, valued at $814,673.28. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 12,150 shares of company stock valued at $626,016. 0.57% of the stock is currently owned by corporate insiders.
Several hedge funds have recently made changes to their positions in MSCC. Flinton Capital Management LLC raised its stake in shares of 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 period. American Century Companies Inc. raised its stake in shares of Microsemi Corporation by 4.8% in the first quarter. American Century Companies Inc. now owns 229,036 shares of the semiconductor company’s stock worth $11,802,000 after buying an additional 10,438 shares during the last quarter. First Trust Advisors LP raised its stake in shares of Microsemi Corporation by 23.2% in the first quarter. First Trust Advisors LP now owns 155,797 shares of the semiconductor company’s stock worth $8,028,000 after buying an additional 29,289 shares during the last quarter. Signature Estate & Investment Advisors LLC raised its stake in shares of Microsemi Corporation by 16.2% in the first quarter. Signature Estate & Investment Advisors LLC now owns 9,456 shares of the semiconductor company’s stock worth $487,000 after buying an additional 1,321 shares during the last quarter. Finally, Chicago Equity Partners LLC raised its stake in shares of Microsemi Corporation by 0.5% in the first quarter. Chicago Equity Partners LLC now owns 29,160 shares of the semiconductor company’s stock worth $1,503,000 after buying an additional 150 shares during the last quarter. Institutional investors own 98.58% of the company’s stock.
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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