Tower Semiconductor (NASDAQ:TSEM) Stock Price Drops 15.9% - Here's Why

Tower Semiconductor Ltd. (NASDAQ:TSEM) experienced a significant decline of 15.9% in its stock price on Monday. The shares traded as low as $46.10 during the day and last settled at $46.03. Approximately 925,000 shares were exchanged in mid-day trading, representing a 46% increase from the average daily volume of 633,497 shares. The stock had previously closed at $54.74.

Analyst Ratings and Insights

Several financial institutions have provided updates on TSEM. StockNews.com downgraded Tower Semiconductor from a "buy" rating to a "hold" rating in a report dated November 12th. On the other hand, Craig Hallum revised its price target for Tower Semiconductor from $54.00 to $60.00 and recommended the stock as a "buy" on November 14th. Similarly, Susquehanna increased its target price for Tower Semiconductor from $55.00 to $60.00 and assigned a "positive" rating in its research report also on November 14th. Benchmark reaffirmed a "buy" rating with a $55.00 price target for the company on the same day. Currently, one analyst rates the stock as a hold, while three analysts rate it as a buy. According to MarketBeat, the average rating for Tower Semiconductor is "Moderate Buy" with a consensus price target of $58.33.

Company Financials and Performance

Tower Semiconductor's recent quarterly earnings report indicated that the company posted an earnings per share (EPS) of $0.57 for the quarter. This result exceeded analysts' expectations of $0.45 by $0.12. The company recorded a net margin of 14.75% and a return on equity of 8.22%. Tower Semiconductor's revenue for the quarter amounted to $370.50 million, slightly above the analyst expectations of $370.30 million, marking a year-over-year increase of 3.4%. Analysts forecast an EPS of 1.77 for the current fiscal year.

Institutional Investor Activity

Recently, various hedge funds and institutional investors have adjusted their stakes in Tower Semiconductor. Essex Investment Management Co. LLC increased its position in the company by 7.5% during the third quarter, acquiring an additional 12,551 shares and totaling 179,579 shares valued at $7,948,000. Meanwhile, Migdal Insurance & Financial Holdings Ltd. raised its holdings by 1.5%, owning 3,297,806 shares valued at $145,961,000 after purchasing another 50,000 shares. Notably, Summit Partners Public Asset Management LLC dramatically increased its stake by 1,146.9%, now holding 1,496,315 shares worth $66,227,000. Similarly, Barclays PLC expanded its holdings in Tower Semiconductor by over 4,000%, owning 23,958 shares valued at $1,060,000 after acquiring an extra 23,385 shares. Overall, 70.51% of the company's stock is in the hands of hedge funds and institutional investors.

About Tower Semiconductor

Tower Semiconductor Ltd. is an independent semiconductor foundry that specializes in manufacturing analog intensive mixed-signal semiconductor devices. With operations in Israel, the United States, Japan, Europe, and other regions, the company offers various customizable process technologies, including SiGe, BiCMOS, RF CMOS, CMOS image sensors, integrated power management, and MEMS.

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