MACOM Technology Solutions (NASDAQ:MTSI) Shares Down 7.4% – Should You Sell?

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) fell 7.4% on Thursday. The stock traded as low as $266.11 and last traded at $269.8950. Approximately 439,496 shares were traded during mid-day trading, a decline of 69% from the average session volume of 1,439,483 shares. The stock had previously closed at $291.33.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Weiss Ratings downgraded MACOM Technology Solutions from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, August 21st. Benchmark began coverage on MACOM Technology Solutions in a report on Thursday, August 13th. They issued a “buy” rating and a $375.00 price target for the company. Stifel Nicolaus upped their price target on MACOM Technology Solutions from $385.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Wall Street Zen upgraded MACOM Technology Solutions from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, BMO Capital Markets raised MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $335.00 price objective on the stock in a report on Friday, September 18th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $341.25.

MACOM Technology Solutions Price Performance

The stock has a market cap of $20.45 billion, a price-to-earnings ratio of 86.03, a P/E/G ratio of 1.02 and a beta of 1.77. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.34 and a quick ratio of 1.78. The stock’s 50 day simple moving average is $286.29 and its two-hundred day simple moving average is $305.54.

MACOM Technology Solutions (NASDAQ:MTSI) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.05. MACOM Technology Solutions had a net margin of 20.70% and a return on equity of 17.82%. The company had revenue of $342.24 million during the quarter, compared to analysts’ expectations of $336.08 million. During the same quarter in the prior year, the company posted $0.90 EPS. The business’s revenue was up 35.8% on a year-over-year basis. MACOM Technology Solutions has set its Q4 2026 guidance at 1.970-2.030 EPS. On average, analysts forecast that MACOM Technology Solutions Holdings, Inc. will post 4.26 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO John Kober sold 7,389 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $326.08, for a total value of $2,409,405.12. Following the completion of the transaction, the chief financial officer owned 33,583 shares of the company’s stock, valued at $10,950,744.64. This represents a 18.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Robert Dennehy sold 252 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $275.20, for a total transaction of $69,350.40. Following the transaction, the chief operating officer owned 12,758 shares of the company’s stock, valued at approximately $3,511,001.60. This represents a 1.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 8,294 shares of company stock worth $2,674,656. Corporate insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On MACOM Technology Solutions

Several large investors have recently modified their holdings of MTSI. Assenagon Asset Management S.A. lifted its position in shares of MACOM Technology Solutions by 84.7% during the 3rd quarter. Assenagon Asset Management S.A. now owns 253,528 shares of the semiconductor company’s stock worth $72,210,000 after buying an additional 116,295 shares during the period. State of Alaska Department of Revenue boosted its stake in MACOM Technology Solutions by 2.4% in the 3rd quarter. State of Alaska Department of Revenue now owns 6,585 shares of the semiconductor company’s stock valued at $1,875,000 after buying an additional 156 shares in the last quarter. Fort Washington Investment Advisors Inc. OH acquired a new stake in MACOM Technology Solutions in the 3rd quarter valued at $347,000. Mather Group LLC. boosted its stake in MACOM Technology Solutions by 41.0% in the 3rd quarter. Mather Group LLC. now owns 141 shares of the semiconductor company’s stock valued at $40,000 after buying an additional 41 shares in the last quarter. Finally, Avior Wealth Management LLC grew its position in MACOM Technology Solutions by 87.0% in the third quarter. Avior Wealth Management LLC now owns 1,621 shares of the semiconductor company’s stock valued at $462,000 after acquiring an additional 754 shares during the period. 76.14% of the stock is currently owned by institutional investors.

About MACOM Technology Solutions

MACOM Technology Solutions Holdings, Inc (NASDAQ: MTSI) is a semiconductor company that designs and manufactures high-performance products for telecommunications, data center, industrial, aerospace and defense applications. Its technologies support the generation, transmission, reception and processing of high-frequency signals across radio frequency, microwave, millimeter-wave and optical systems.

The company’s product portfolio includes amplifiers, switches, diodes, mixers, modulators, filters, integrated circuits and other components used in wireless infrastructure, optical networks, satellite communications, radar, electronic warfare and test and measurement equipment.