Is Tower Semiconductor Ltd. (TSEM) a great play right now?

On Wednesday, shares of Tower Semiconductor Ltd. (NASDAQ:TSEM) marked $18.89 per share versus a previous $19.09 closing price. With having a -1.05% loss, an insight into the fundamental values of Tower Semiconductor Ltd., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. TSEM showed a fall of -21.49% within its YTD performance, with highs and lows between $12.13 – $25.80 during the period of 52 weeks, compared to the simple moving average of -8.97% in the period of the last 200 days.

Credit Suisse equity researchers changed the status of Tower Semiconductor Ltd. (NASDAQ: TSEM) shares from “Outperform” to a “Neutral” rating in the report published on April 24th, 2019. Other analysts, including Needham, also published their reports on TSEM shares. Needham repeated the rating from the previous report, marking TSEM under “Buy” rating, in the report published on January 22nd, 2019. Additionally, TSEM shares got another “Buy” rating from Jefferies. On the other hand, Needham Reiterated the “Buy” rating for TSEM shares, as published in the report on July 30th, 2018. Loop Capital seems to be going bullish on the price of TSEM shares, based on the price prediction for TSEM, indicating that the shares will jump to $46, giving the shares “Buy” rating based on their report from June 22nd, 2018. Another “Buy” rating came from Needham, providing a prediction for $46 price target according to the report published in May 8th, 2018.

Tower Semiconductor Ltd. (TSEM) Analysis

The present dividend yield for TSEM owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Tower Semiconductor Ltd., the company needs to provide a healthy cash flow, currently at the value of 28.65. In addition, the growth of sales from quarter to quarter is recording -3.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Tower Semiconductor Ltd. (TSEM) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 6.10% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 3.10 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while TSEM is currently recording an average of 405.55K in volumes. The volatility of the stock on monthly basis is set at 3.30%, while the weekly volatility levels are marked at 2.78%with -1.56% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $25.03, indicating growth from the present price of $18.89, which can represent yet another valuable research and analysis points that can help you decide whether to invest in TSEM or pass.

What to Look for When Analyzing Tower Semiconductor Ltd. Shares?

Tower Semiconductor Ltd. (TSEM) is based in the Israel and it represents one of the well-known company operating with Technology sector. If you wish to compare TSEM shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 25.15 for Tower Semiconductor Ltd., while the value 12.68 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 0.75 is supported by the yearly EPS growth of -36.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 19.60%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 8.20% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in TSEM Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in TSEM in the recent period. That is how Macquarie Investment Management B now has an increase position in TSEM by 8.92% in the first quarter, owning 3.15 million shares of TSEM stocks, with the value of $63.26 million after the purchase of an additional 257,636 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in TSEM shares changed 4.12% in the first quarter, which means that the company now owns 2.83 million shares of company, all valued at $56.84 million after the acquisition of additional 111,849 shares during the last quarter.

Norges Bank Investment Management acquired a new position in Tower Semiconductor Ltd. during the first quarter, with the value of $56.25 million, and Ion Asset Management increased their stake in the company’s shares by 18.93% in the first quarter, now owning 437,905 shares valued at $55.32 million after the acquisition of the additional 2.75 million shares during the last quarter. At the present, 8.20% of TSEM shares are in the ownership of institutional investors.