Title: Tower Semiconductor Ltd. (TSEM) Stock Analysis: Is It Worth Buying?
Tower Semiconductor Ltd. (NASDAQ:TSEM) is making headlines today as its stock saw a 3.42% increase in the recent trading session. With a beta value of 0.87 and a market capitalization of $3.93B, Tower Semiconductor closed the trading day at $36.60 per share, gaining $1.21 or 3.42% during that session.
While Tower Semiconductor’s stock price is currently -31.09% off its 52-week high of $47.98, it remains 3.5% above its 52-week low of $35.32. Looking at the trading volume, Tower Semiconductor has witnessed an average daily trading volume of 0.6 million shares over the past 10 days, with a 3-month trading volume of 807.79K shares.
Though the stock has shown the potential for growth today, it has seen a slight decline over the last five days. Analysts have projected a growth rate of -15.50% for the current quarter and -30.10% for the next quarter. Furthermore, Tower Semiconductor’s revenue growth from the last financial year is estimated to be -13.20%.
While Tower Semiconductor’s earnings growth percentage for the next five years is expected to increase by 15.00%, its five-year annual earnings growth rate has been -2.30%. However, it is worth noting that Tower Semiconductor is predicted to release its next earnings report on July 26, bringing potential for investors to receive better dividends despite the company’s debt issue.
Insider ownership of the company stands at 0.00%, while institutions hold approximately 57.98% of the shares, indicating investor interest in the stock. Among the top institutional holders, Clal Insurance Enterprises Holdings Ltd holds over 6.03 million shares worth more than $219.48 million. This represents 5.48% of outstanding shares. JP Morgan Chase & Company also holds a significant position in the company, with over 4.93 million shares valued at over $179.58 million, accounting for 4.48% of outstanding shares.
Additionally, Tower Semiconductor has garnered attention from 342 institutions that hold shares in the company, highlighting investor confidence.
Tower Semiconductor Ltd.’s stock has underperformed when compared to the wider industry, with a decline of -17.19% over the past six months. As for this year, the growth rate stands at -15.60%, compared to the industry’s -12.00%. The company has also lowered its growth outlook for the 2023 fiscal year revenue, which might be seen as a cause for concern.
Despite these factors, Tower Semiconductor continues to be an interesting investment option for many. As the stock remains in the green today, investors may want to keep an eye on Tower Semiconductor’s future performance and any upcoming earnings reports.
Investing in any stock comes with a degree of risk, and Tower Semiconductor is no exception. It is recommended that potential investors conduct their own research and consult with a financial advisor to make an informed decision based on their specific investment goals and risk tolerance.
In conclusion, Tower Semiconductor Ltd. (TSEM) is an intriguing stock to watch. With its recent increase in stock price, strong institutional ownership, and positive earnings growth projections, Tower Semiconductor has the potential to deliver returns for investors. However, it is essential to consider the industry’s performance and the company’s lowered growth outlook before making any investment decisions.
