Microsemi Corporation (MSCC) Stock Rating Reaffirmed by Needham & Company LLC

Microsemi Corporation (NASDAQ:MSCC)‘s stock had its “buy” rating restated by research analysts at Needham & Company LLC in a note issued to investors on Friday. They currently have a $61.00 price target on the semiconductor company’s stock. Needham & Company LLC’s price target would suggest a potential upside of 15.93% from the company’s current price.

The analysts wrote, “MSCC reported in-line F4Q17 results and in-line F1Q18 guidance. More importantly, the company exceeded its $400MM FCF target post PMC acquisition close, generating $420MM in FCF in FY17. The company also beat its gross leverage target of 3.0x by the end of FY17, with gross leverage coming in at 2.9x. Further, MSCC achieved record profitability in F4Q17, with NG GM and NG OM both hitting new highs. We feel strongly the company remains on track to hit its 35% NG OM target. Lastly, management expressed confidence in its long-term 6-8% Y/Y organic growth target, driven by several product cycles. Given management’s solid execution on margins, cash flow generation and deleveraging, combined with demonstrable organic revenue growth, we reiterate our Buy rating and $61 price target.””

MSCC has been the subject of several other reports. Zacks Investment Research upgraded shares of Microsemi Corporation from a “sell” rating to a “hold” rating in a research report on Tuesday, October 24th. KeyCorp began coverage on shares of Microsemi Corporation in a research report on Monday, July 24th. They set an “overweight” rating and a $61.00 price objective for the company. BidaskClub cut shares of Microsemi Corporation from a “buy” rating to a “hold” rating in a research report on Wednesday, August 2nd. Finally, Wells Fargo & Company restated an “outperform” rating on shares of Microsemi Corporation in a research report on Monday, July 31st. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus price target of $61.11.

Shares of Microsemi Corporation (NASDAQ MSCC) opened at $52.62 on Friday. Microsemi Corporation has a 12-month low of $46.08 and a 12-month high of $57.97. The stock has a market cap of $6,087.29, a PE ratio of 15.80, a P/E/G ratio of 1.16 and a beta of 1.16. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.53 and a current ratio of 2.26.

Microsemi Corporation (NASDAQ:MSCC) last released its quarterly earnings data on Thursday, November 9th. The semiconductor company reported $1.09 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.08 by $0.01. Microsemi Corporation had a net margin of 9.73% and a return on equity of 21.31%. The firm had revenue of $475.30 million during the quarter, compared to analysts’ expectations of $474.97 million. During the same period last year, the business earned $0.91 earnings per share. Microsemi Corporation’s revenue was up 5.6% compared to the same quarter last year. analysts predict that Microsemi Corporation will post 3.62 EPS for the current year.

Microsemi Corporation announced that its Board of Directors has authorized a share repurchase plan on Thursday, July 27th that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the semiconductor company to repurchase up to 43% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

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In other news, SVP David Goren sold 8,329 shares of the firm’s stock in a transaction that occurred on Tuesday, October 10th. The shares were sold at an average price of $52.54, for a total value of $437,605.66. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Paul H. Pickle sold 69,482 shares of the firm’s stock in a transaction that occurred on Tuesday, November 7th. The shares were sold at an average price of $53.71, for a total transaction of $3,731,878.22. Following the completion of the transaction, the chief operating officer now directly owns 88,512 shares of the company’s stock, valued at approximately $4,753,979.52. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 231,467 shares of company stock valued at $12,340,556. Company insiders own 0.57% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of MSCC. Oppenheimer Asset Management Inc. purchased a new position in shares of Microsemi Corporation in the first quarter valued at approximately $113,000. AQR Capital Management LLC boosted its stake in shares of Microsemi Corporation by 42.7% in the first quarter. AQR Capital Management LLC now owns 86,352 shares of the semiconductor company’s stock valued at $4,450,000 after purchasing an additional 25,860 shares during the period. Capstone Asset Management Co. boosted its stake in shares of Microsemi Corporation by 11.2% in the second quarter. Capstone Asset Management Co. now owns 11,514 shares of the semiconductor company’s stock valued at $539,000 after purchasing an additional 1,160 shares during the period. Bank of Montreal Can boosted its stake in shares of Microsemi Corporation by 0.8% in the second quarter. Bank of Montreal Can now owns 225,717 shares of the semiconductor company’s stock valued at $10,563,000 after purchasing an additional 1,843 shares during the period. Finally, Somerset Trust Co boosted its stake in shares of Microsemi Corporation by 0.4% in the second quarter. Somerset Trust Co now owns 11,343 shares of the semiconductor company’s stock valued at $531,000 after purchasing an additional 47 shares during the period. 98.37% of the stock is owned by institutional investors and hedge funds.

About Microsemi Corporation

Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets.

Analyst Recommendations for Microsemi Corporation (NASDAQ:MSCC)

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