Tower Semiconductor Ltd. (NASDAQ: TSEM) stock fell -0.32% on Thursday to $27.97 against a previous-day closing price of $28.06. With 0.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.33 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $28.36 whereas the lowest price it dropped to was $27.85. The 52-week range on TSEM shows that it touched its highest point at $46.50 and its lowest point at $27.33 during that stretch. It currently has a 1-year price target of $34.33. Beta for the stock currently stands at 0.90.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TSEM was down-trending over the past week, with a drop of -2.29%, but this was down by -17.20% over a month. Three-month performance dropped to -31.96% while six-month performance fell -31.35%. The stock lost -38.24% in the past year, while it has lost -35.25% so far this year. A look at the trailing 12-month EPS for TSEM yields 2.48 with Next year EPS estimates of 2.29. For the next quarter, that number is 0.49. This implies an EPS growth rate of 74.80% for this year and 3.48% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -2.30%.
Float and Shares Shorts:
At present, 110.29 million TSEM shares are outstanding with a float of 110.12 million shares on hand for trading. On Aug 14, 2023, short shares totaled 1.25 million, which was 1.13% higher than short shares on Jul 13, 2023. In addition to Mr. Russell C. Ellwanger as the firm’s CEO & Director, Mr. Oren Shirazi serves as its CFO & Sr. VP of Fin.
Through their ownership of 60.38% of TSEM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.27% of TSEM, in contrast to 23.82% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in TSEM with 6.05% of the stake, Clal Pension & Provident Funds Lt holds 6,659,708 shares worth 6,659,708. A second-largest stockholder of TSEM, Harel Provident Funds Ltd., holds 5,813,543 shares, controlling over 5.28% of the firm’s shares. JPMorgan Securities LLC is the third largest shareholder in TSEM, holding 5,546,178 shares or 5.04% stake. With a 1.34% stake in TSEM, the Vanguard Total International Stoc is the largest stakeholder. A total of 1,471,986 shares are owned by the mutual fund manager. The BlackRock Event Driven Equity Fun, which owns about 1.33% of TSEM stock, is the second-largest Mutual Fund holder. It holds 1,468,247 shares valued at 55.43 million. KSM ETF holds 1.05% of the stake in TSEM, owning 1,155,657 shares worth 43.63 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TSEM reported revenue of $426.17M and operating income of $70.67M. The EBITDA in the recently reported quarter was $140.16M and diluted EPS was $0.53.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TSEM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TSEM analysts setting a high price target of $38.00 and a low target of $31.00, the average target price over the next 12 months is $34.50. Based on these targets, TSEM could surge 35.86% to reach the target high and rise by 10.83% to reach the target low. Reaching the average price target will result in a growth of 23.35% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.