Amkor Technology, Inc. (NASDAQ:AMKR – Get Free Report)’s share price gapped up prior to trading on Tuesday. The stock had previously closed at $36.81, but opened at $38.58. Amkor Technology shares last traded at $38.7820, with a volume of 1,689,331 shares.
More Amkor Technology News
Here are the key news stories impacting Amkor Technology this week:
- Positive Sentiment: AI and computing growth are supporting the investment case. Amkor reported record Computing revenue, while demand tied to AI packaging and relationships with NVIDIA, Apple, AMD and TSMC are fueling expectations for longer-term growth. The company’s planned Arizona expansion and roughly $12 billion investment program reinforce its strategic role in domestic advanced packaging. Amkor’s Mobile Business Is Slowing, But Its AI Ambitions Aren’t
- Positive Sentiment: Profitability improved. A richer advanced-packaging mix lifted gross profit to approximately $364 million and operating margin to 11.3%. Investors appear to be rewarding margin expansion even though total revenue was broadly flat. Amkor Technology Delivers $364M Gross Profit as Operating Margin Reaches 11.3%
- Positive Sentiment: Some analysts see substantial upside after the selloff. Amkor’s shares have fallen sharply over the past six months, prompting bullish analysts to argue that the stock is undervalued relative to its AI-packaging potential. Amkor Technology Halved Over the Last 6 Months
- Neutral Sentiment: Analyst opinion is mixed. Needham retained a Buy rating with a $55 target, while Morgan Stanley maintained Equal Weight at $63. B. Riley moved to Neutral and cut its target to $41, illustrating uncertainty over the pace of the recovery. Analysts Slash Their Forecasts on Amkor
- Negative Sentiment: Q3 results and outlook missed expectations. Earnings per share came in at $0.76 versus $0.78 expected, and revenue was $1.99 billion versus a $2.04 billion consensus. Communications and mobile weakness offset Computing gains, while fourth-quarter guidance was below consensus. Amkor Q3 Earnings Miss Estimates
- Negative Sentiment: Large expansion spending and new convertible notes create financial risks. Annual capital expenditure of approximately $2.5 billion and the broader Arizona buildout could pressure cash flow, while the 2031 convertible notes may reduce reported earnings and tighten liquidity. Heavy put-option activity also signals ongoing investor hedging. Amkor’s 2031 Convertible Notes
Analysts Set New Price Targets
AMKR has been the subject of a number of recent research reports. Morgan Stanley cut their price objective on Amkor Technology from $70.00 to $63.00 and set an “equal weight” rating for the company in a research note on Tuesday. The Goldman Sachs Group set a $56.00 price target on shares of Amkor Technology in a report on Tuesday. Bank of America started coverage on shares of Amkor Technology in a report on Thursday, August 27th. They set a “buy” rating and a $70.00 price target on the stock. Weiss Ratings lowered shares of Amkor Technology from a “hold (c+)” rating to a “sell (d+)” rating in a research report on Wednesday. Finally, UBS Group raised shares of Amkor Technology from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $80.00 to $90.00 in a research note on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $62.50.
Read Our Latest Stock Report on AMKR
Amkor Technology Price Performance
The firm has a 50-day moving average of $48.39 and a 200-day moving average of $57.18. The stock has a market cap of $10.49 billion, a PE ratio of 17.02, a PEG ratio of 0.48 and a beta of 2.21. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.17 and a quick ratio of 1.91.
Amkor Technology (NASDAQ:AMKR – Get Free Report) last posted its quarterly earnings results on Monday, October 26th. The semiconductor company reported $0.76 EPS for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.02). Amkor Technology had a return on equity of 12.27% and a net margin of 7.45%. The business had revenue of $1.99 billion during the quarter, compared to analysts’ expectations of $2.04 billion. During the same period in the prior year, the firm posted $0.51 earnings per share. The firm’s revenue for the quarter was up .2% on a year-over-year basis. Research analysts predict that Amkor Technology, Inc. will post 2.60 EPS for the current year.
Amkor Technology Dividend Announcement
The business also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Wednesday, September 2nd were given a dividend of $0.0835 per share. The ex-dividend date was Wednesday, September 2nd. This represents a $0.33 dividend on an annualized basis and a dividend yield of 0.8%. Amkor Technology’s dividend payout ratio is currently 13.31%.
Insider Activity at Amkor Technology
In related news, Director Douglas Alexander sold 5,000 shares of the firm’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $55.81, for a total transaction of $279,050.00. Following the completion of the transaction, the director directly owned 29,109 shares of the company’s stock, valued at approximately $1,624,573.29. This trade represents a 14.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Megan Faust sold 1,000 shares of Amkor Technology stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $46.92, for a total transaction of $46,920.00. Following the completion of the sale, the chief financial officer owned 133,105 shares in the company, valued at approximately $6,245,286.60. This represents a 0.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 43,000 shares of company stock worth $2,387,120 in the last three months. Insiders own 26.40% of the company’s stock.
Institutional Investors Weigh In On Amkor Technology
Several large investors have recently added to or reduced their stakes in AMKR. CoreCap Advisors LLC lifted its position in shares of Amkor Technology by 56.4% in the 2nd quarter. CoreCap Advisors LLC now owns 438 shares of the semiconductor company’s stock worth $38,000 after purchasing an additional 158 shares during the period. Clearstead Trust LLC bought a new position in shares of Amkor Technology during the second quarter valued at approximately $43,000. Ceredex Value Advisors LLC purchased a new position in Amkor Technology during the second quarter valued at approximately $47,000. Solstein Capital LLC bought a new position in Amkor Technology in the second quarter worth approximately $52,000. Finally, Thurston Springer Miller Herd & Titak Inc. bought a new position in Amkor Technology in the second quarter worth approximately $54,000. 42.76% of the stock is owned by institutional investors.
About Amkor Technology
Amkor Technology, Inc is a provider of outsourced semiconductor packaging and test services. The company helps semiconductor manufacturers and electronics companies assemble, package and test integrated circuits before they are incorporated into finished electronic products.
Amkor’s services include wafer bumping, wafer-level packaging, flip-chip packaging, system-in-package solutions, fan-out packaging, leadframe and laminate-based packaging, and semiconductor testing. Its products and services support applications including mobile and consumer electronics, communications, automotive, computing, industrial equipment, and memory devices.
Founded in 1968, Amkor has grown into a global semiconductor supply-chain partner with manufacturing and testing operations across regions including Asia, Europe and the United States.
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