MACOM Technology Solutions (NASDAQ:MTSI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.

According to Zacks, “MACOM’s first-quarter results were impacted by trade tensions and slowdown in the industrial market due to macro slowdown. The ban on ZTE shipments imposed by U.S. Government is a matter of concern. Also, leveraged balance sheet is a headwind. However, the company is currently benefiting from its strong momentum in the data center space. The company’s robust 100 GB Ethernet connectivity is expected to continue aiding its performance in this market. Moreover, rising CapEx by cloud service providers remains a major positive. Additionally, growing 5G spending by the network operators should benefit the company’s position in the telecom space. Further, technical advancements in the areas of radar and threat protection are acting as a tailwind. Also, MACOM's solid cost-cutting measures will also aid its margin expansion.”

A number of other equities analysts have also recently weighed in on the stock. ValuEngine cut shares of MACOM Technology Solutions from a “hold” rating to a “sell” rating in a research report on Thursday. Needham & Company LLC reduced their price target on shares of MACOM Technology Solutions from $27.00 to $23.00 and set a “buy” rating on the stock in a research report on Wednesday, February 6th. Craig Hallum cut shares of MACOM Technology Solutions from a “buy” rating to a “hold” rating and reduced their price target for the stock from $23.00 to $19.00 in a research report on Wednesday, February 6th. BidaskClub raised shares of MACOM Technology Solutions from a “hold” rating to a “buy” rating in a research report on Monday, February 4th. Finally, Evercore ISI dropped their price objective on shares of MACOM Technology Solutions from $24.00 to $20.00 and set an “outperform” rating on the stock in a report on Monday, January 14th. Five research analysts have rated the stock with a sell rating, four have given a hold rating and five have issued a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $20.25.

Shares of NASDAQ MTSI traded up $0.30 during midday trading on Monday, reaching $16.76. 16,979 shares of the stock were exchanged, compared to its average volume of 624,307. The stock has a market cap of $1.08 billion, a price-to-earnings ratio of 119.79, a P/E/G ratio of 9.89 and a beta of 2.32. MACOM Technology Solutions has a 12 month low of $13.07 and a 12 month high of $25.92. The company has a quick ratio of 3.63, a current ratio of 4.93 and a debt-to-equity ratio of 1.05.

MACOM Technology Solutions (NASDAQ:MTSI) last announced its quarterly earnings results on Tuesday, February 5th. The semiconductor company reported $0.20 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.20. The company had revenue of $150.69 million for the quarter, compared to analysts’ expectations of $153.14 million. MACOM Technology Solutions had a negative net margin of 23.86% and a positive return on equity of 1.78%. The business’s quarterly revenue was up 15.1% compared to the same quarter last year. During the same period last year, the firm posted $0.10 earnings per share. On average, research analysts anticipate that MACOM Technology Solutions will post 0.09 EPS for the current fiscal year.

In other MACOM Technology Solutions news, CFO Robert Mcmullan sold 15,000 shares of MACOM Technology Solutions stock in a transaction on Tuesday, November 20th. The shares were sold at an average price of $16.91, for a total value of $253,650.00. Following the sale, the chief financial officer now directly owns 52,561 shares in the company, valued at approximately $888,806.51. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider John Croteau sold 6,000 shares of MACOM Technology Solutions stock in a transaction on Tuesday, November 20th. The shares were sold at an average price of $17.16, for a total transaction of $102,960.00. Following the completion of the sale, the insider now owns 140,777 shares in the company, valued at $2,415,733.32. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 27,043 shares of company stock worth $459,764. 32.40% of the stock is currently owned by company insiders.

Hedge funds have recently modified their holdings of the business. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in MACOM Technology Solutions by 37.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,769 shares of the semiconductor company’s stock valued at $55,000 after buying an additional 1,032 shares during the last quarter. Fox Run Management L.L.C. acquired a new stake in MACOM Technology Solutions in the 4th quarter valued at $199,000. MML Investors Services LLC increased its stake in MACOM Technology Solutions by 55.2% in the 3rd quarter. MML Investors Services LLC now owns 15,664 shares of the semiconductor company’s stock valued at $323,000 after buying an additional 5,571 shares during the last quarter. Essex Investment Management Co. LLC bought a new position in shares of MACOM Technology Solutions in the 4th quarter valued at about $338,000. Finally, PNC Financial Services Group Inc. grew its position in shares of MACOM Technology Solutions by 277.2% in the 3rd quarter. PNC Financial Services Group Inc. now owns 16,443 shares of the semiconductor company’s stock valued at $339,000 after acquiring an additional 12,084 shares during the period. Hedge funds and other institutional investors own 83.49% of the company’s stock.

About MACOM Technology Solutions

MACOM Technology Solutions Holdings, Inc, together with its subsidiaries, designs and manufactures analog radio frequency (RF), microwave, millimeterwave, and lightwave spectrum products in the United States, China, the Asia Pacific, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems for approximately 60 product lines.

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