TD Cowen Initiates Coverage on MACOM Technology with Buy Rating

Investment firm TD Cowen has initiated coverage of MACOM Technology Solutions, awarding the semiconductor company a “buy” rating and setting a price target of $150.00. This information was disclosed in a research note released on August 7, 2023, and comes as part of a broader trend among financial analysts who see potential in the company’s stock.

Several other firms have also expressed positive sentiments about MACOM Technology Solutions (NASDAQ:MTSI). Wall Street Zen upgraded the company from a “hold” rating to a “buy” rating on July 20, 2023. Truist Financial raised its price target on MACOM from $136.00 to $154.00, issuing a “buy” rating in a report dated July 7, 2023. Additionally, Stifel Nicolaus increased its price objective from $140.00 to $155.00 on July 18, 2023, while Bank of America set its target at $160.00 on June 24, 2023.

According to MarketBeat, MACOM Technology Solutions currently holds an average rating of “Moderate Buy” among analysts, with a consensus price target of $146.56. The company has seen varied ratings, with one analyst suggesting a “Strong Buy,” eight issuing “Buy” ratings, two recommending a “Hold,” and one advising a “Sell.”

Recent Financial Performance and Future Outlook

On August 7, 2023, MACOM Technology Solutions reported its quarterly earnings, revealing earnings per share (EPS) of $0.90, slightly above analysts’ expectations of $0.89. This marked a year-over-year increase from $0.66 EPS during the same quarter last year. The company’s revenue also surpassed estimates, reaching $252.08 million against predictions of $249.89 million. This represents a remarkable year-over-year revenue growth of 32.3%.

For the upcoming fourth quarter of 2025, MACOM has set guidance for EPS between $0.910 and $0.950. Analysts forecast that the company will achieve an annual EPS of $2.43 for the current financial year.

Insider Activity and Institutional Investment Trends

In other developments, significant insider activity has been noted recently. Director Jihye Whang Rosenband sold 800 shares of the company’s stock on August 21, 2023, at an average price of $123.81, totaling approximately $99,048.00. Following this sale, she retained 7,189 shares valued at around $890,070.09, representing a 10.01% decrease in her holdings.

Another major insider, Susan Ocampo, sold 150,000 shares on September 18, 2023, for a total of $19,963,500.00. This transaction reduced her ownership by 4.26%, leaving her with approximately 3,372,186 shares valued at around $448,804,234.74.

In the broader context of institutional trading, MACOM Technology Solutions has attracted significant interest. Hantz Financial Services Inc. increased its holdings by 174.0% in the second quarter, now owning 211 shares worth $30,000. Other notable investments include Opal Wealth Advisors LLC, which acquired a new stake valued at $25,000, and Versant Capital Management Inc., which grew its holdings by 9,400.0% during the first quarter.

Currently, institutional investors hold 76.14% of MACOM Technology Solutions’ stock, reflecting strong confidence in the company’s future prospects.

MACOM Technology Solutions Holdings, Inc. specializes in designing and manufacturing analog semiconductor solutions for various applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum, serving markets in the United States, China, Australia, Japan, and several other countries.