MACOM Technology Solns Stock (NASDAQ: MTSI)

MACOM Technology Solns (NASDAQ:MTSI) Stock

MACOM Technology Solns

MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Japan, Singapore, South Korea, and other countries across the world.

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This Agilent Analyst Is No Longer Bearish; Here Are Top 5 Upgrades For Monday

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Macom Technology Solutions Holdings faces pressure despite in-line results and outlook. Analysts expect growth in AI, Satcom, and Defense sectors.

Macom Technology Solutions Is Poised For AI-Driven Revenue Growth: Analyst

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Analyst N. Quinn Bolton notes 2024&#39;s divergence in fortunes for semiconductor companies exposed to different end markets. AI stocks outperformed.

Nvidia, Broadcom, Marvell Positioned For Growth As AI Demand Drives Semiconductor Momentum

MACOM Technology Solutions Holdings, Inc. - Common Stock

MACOM Technology Solutions Holdings Inc

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>B of A Securities analyst John Murphy upgraded the rating for Mobileye Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>) from Underperform to Neutral and raised the price target from $12 to $19. Mobileye Global shares closed at $16.07 on Friday. <a href="https://www.benzinga.com/quote/MBLY/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Northland Capital Markets analyst Tim Savageaux upgraded MACOM Technology Solutions Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>) from Market Perform to Outperform and raised the price target from $105 to $140. MACOM Technology shares closed at $127.21 on Friday. <a href="https://www.benzinga.com/quote/MTSI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Barclays analyst Luke Sergott upgraded Agilent Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/A#NYSE">A</a>) from Underweight to Equal-Weight and raised the price target from $135 to $145. Agilent shares closed at $145.21 on Friday. <a href="https://www.benzinga.com/quote/A/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>UBS analyst Amit Mehrotra upgraded Johnson Controls International plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>) from Neutral to Buy and raised the price target from $90 to $103. Johnson Controls shares closed at $87.65 on Friday. <a href="https://www.benzinga.com/quote/JCI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Keefe, Bruyette &amp; Woods analyst Catherine Mealor upgraded Wesbanco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WSBC#NASDAQ">WSBC</a>) from Market Perform to Outperform and raised the price target from $40 to $44. Wesbanco shares closed at $35.42 on Friday. <a href="https://www.benzinga.com/quote/WSBC/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying Agilent stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="572" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/10114856/image-81-1024x572.png" alt="" class="wp-image-774932" style="width:678px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/10114856/image-81-1024x572.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/10114856/image-81-300x168.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/10114856/image-81-768x429.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/10114856/image-81.png 1095w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read This Next:<a href="https://www.benzinga.com/25/02/43593480/wall-streets-most-accurate-analysts-give-their-take-on-3-real-estate-stocks-with-over-6-dividend-yields-2"> </a>
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Shares of Macom Technology Solutions Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>) came under pressure, despite in-line fiscal first-<a href="https://www.benzinga.com/topic/semiconductors">quarter results and outlook</a>.
Rival Semtech Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMTC#NASDAQ">SMTC</a>) disclosed lower IC (integrated circuit) sales into Active Copper Cables, according to Northland Capital Partners.
The Analyst: <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/590c74bd290fa70001c93005/tim-savageaux">Analyst Tim Savageaux</a> upgraded the rating for Macom Technology Solutions from Market Perform to Outperform, while raising the price target to $140.
The Thesis: The company's first-quarter revenue grew by 9% sequentially and 39% year-on-year to $218.1 million, Savageaux said in the upgrade note.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
The sequential growth in revenues was driven by Datacom, while year-on-year growth was led by an around 80% increase in Telecom revenues due to the Wolfspeed acquisition and strong growth in Industrial/Defense revenues, he added.
"MTSI noted its third consecutive quarter with a 1.10 book to bill, the analyst stated. "MTSI noted expectations for an expansion of its AI Datacom customer base at 800G, which to date has been focused on major China module makers, as well as a ramp in solutions supporting 1.6T connectivity over the next Qs," he further wrote.
"We look to take advantage of any weakness given strong bookings and multiple growth vectors including AI Optical, Satcom and Defense," the analyst stated.
Price Action: Shares of Macom Technology Solutions had declined by 0.76% to $126.24 at the time of publication on Monday.
Read More: 
<ul>
<li><a href="https://www.benzinga.com/25/01/42953261/nvidia-broadcom-and-marvell-positioned-for-growth-as-ai-demand-drives-semiconductor-momentum">Nvidia, Broadcom, Marvell Positioned For Growth As AI Demand Drives Semiconductor Momentum</a></li>
</ul>
Image: Shutterstock

Northland Capital Markets analyst Tim Savageaux upgrades MACOM Technology Solns (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>) from Market Perform to Outperform and raises the price target from $105 to $140.

Northland Capital Markets Upgrades MACOM Technology Solns to Outperform, Raises Price Target to $140

Benchmark analyst David Williams reiterates MACOM Technology Solns (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>) with a Buy and maintains $160 price target.

Benchmark Reiterates Buy on MACOM Technology Solns, Maintains $160 Price Target

General

MACOM Technology shares are trading higher after the company reported better-than-expected Q1 financial results and issued Q2 revenue guidance above estimates.

Business Outlook
For the fiscal second quarter ending April 4, 2025, MACOM expects revenue to be in the range of $227 million to $233 million. Adjusted gross margin is expected to be between 57% and 58%, and adjusted earnings per diluted share is expected to be between $0.82 and $0.86 utilizing an anticipated non-GAAP income tax rate of 3% and 76.0 million fully diluted shares outstanding.

Guidance

MACOM Technology Solns Expects Q2 Revenue Of $227M-$233M Vs $222.01M Est, Adj EPS Of $0.82-$0.86 Vs $0.84 Est

Earnings

Earnings Beats

MACOM Technology Solns Q1 2025 Adj. EPS $0.79 Beats $0.78 Estimate, Sales $218.122M Beat $214.946M Estimate

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Earnings Scheduled For February 6, 2025

Contracts

MACOM's MESC Awarded Multi-Year Contract From Banque Publique d'Investissement, Size Not Disclosed

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Penguin Solutions, Inc. - Ordinary Shares

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Shares of semiconductor companies are trading lower amid AI competition concerns from China's DeepSeek AI model.

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Shares of companies within the broader technology sector are trading higher amid overall market strength after CPI data was in line with estimates and core CPI rose by less than expected.

<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.macom.com&amp;esheet=54179482&amp;newsitemid=20250114364288&amp;lan=en-US&amp;anchor=MACOM+Technology+Solutions+Holdings%2C+Inc.+%28%26%238220%3BMACOM%26%238221%3B%29&amp;index=1&amp;md5=722666fdc3840daa49da693be1262b32">MACOM Technology Solutions Holdings, Inc. ("MACOM")</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>), is pleased to announce its long-term investment plan to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. MACOM's five-year strategic investment plan of up to $345 million is supported by a recently executed preliminary, non-binding agreement with the CHIPS Program Office, which would provide for proposed direct funding from the U.S. Department of Commerce under the CHIPS and Science Act of up to $70 million. The preliminary terms propose up to $180 million to be supported by the CHIPS and Science Act through a combination of direct Federal funding, Federal Investment Tax Credits and State funding, including direct funding from the Massachusetts Technology Collaborative of up to $15.7 million as well as other incentives from the State of Massachusetts. It is expected that the balance of approximately $165 million would be self-funded by MACOM's operating cash flow over the next five years.

Government

Regulations

MACOM Unveils $345M Plan to Upgrade US Wafer Facilities, Backed by CHIPS Act Funding

Needham analyst N. Quinn Bolton noted 2024&#8217;s divergence of the fortunes of <a href="https://www.benzinga.com/topic/semiconductors" target="_blank" rel="noreferrer noopener">semiconductor companies exposed</a> to different end markets. 
Semiconductor suppliers exposed to the PC, smartphone, industrial, and automotive sectors generally noticed fundamentals under pressure throughout the year.
On the other hand, the AI segment experienced strong demand for accelerating deployments of AI infrastructure.
Also Read: <a href="https://www.benzinga.com/government/regulations/25/01/42907937/taiwan-semiconductor-hits-26-3-billion-q4-revenue-reportedly-ends-powerair-deal-over-huawei-chip-breach-amid-us-sanctions" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor Hits $26.3 Billion Q4 Revenue, Reportedly Ends PowerAIR Deal Over Huawei Chip Breach Amid US Sanctions</a>
As a result, AI-driven semiconductor stocks significantly outperformed the S&amp;P 500 Index and non-AI-driven semiconductor stocks in 2024.
The performance of AI and non-AI stocks may begin to see some mean reversion, Bolton says. Growth in AI revenue will begin to decelerate and fundamentals for analog/mixed-signal semiconductor companies will start to recover.
Bolton named Allegro MicroSystems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALGM#NASDAQ">ALGM</a>) his top pick for 2025 and added the company to Needham&#8217;s Conviction List.
Bolton noted that 2024 was the year of the &#8220;haves&#8221; and the &#8220;have nots&#8221; in the semiconductor industry. Due to the combination of weak demand conditions and digestion of excess inventory, semiconductor suppliers exposed to the PC, smartphone, industrial, and automotive end markets generally experienced revenue and earnings declines in 2024.
While the S&amp;P 500 Index returned 23% in calendar year 2024, the average return for the &#8220;non-AI&#8221;-driven semiconductor companies in Bolton&#8217;s coverage universe was -17 %.
On the other hand, driven by strong demand for accelerating deployments of AI infrastructure, semiconductor companies with exposure to AI saw robust revenue and earnings growth.
On average, the stock prices of AI-driven companies in Bolton&#8217;s coverage universe increased 147% in 2024, significantly outperforming the 23% return of the S&amp;P 500 over this period.
Bolton noted that broad-based, analog/mixed-signal, and cyclical recovery stocks may outperform in 2025. In 2025, Bolton expects the performance of AI and non-AI stocks to begin to see some mean reversion as growth in AI revenue begins to decelerate and fundamentals for analog/mixed-signal semiconductor companies begin to recover.
Bolton did not call for this rotation from AI names to analog/mixed-signal or other semiconductor cycle plays to necessarily occur in early 2025. The near-term outlook for many analog/mixed-signal stocks remains muted in the near-term while he expects continued momentum in revenue and earnings for the AI-related stocks. However, Bolton noted this rotation could begin in the Spring to early Summer.
AI spending is decelerating, which may lead to multiple contractions.
Potential catalysts for the rotation included the end of inventory digestion and improvements in end market demand. The trend toward autonomy and electrification in autos is intact and should drive semiconductor growth, and valuations that are more compelling than those for AI-driven stocks.
Bolton also remains positive on Silicon Laboratories, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLAB#NASDAQ">SLAB</a>), Lattice Semiconductor Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>), and ON Semiconductor Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>).
Bolton noted Silicon Labs as an idiosyncratic semiconductor play that is not dependent on a macro recovery in 2025 as new design win ramps in smart meters in India, electronic shelf labeling and continuous glucose monitors, as well as the ramp of new single-stream WiFi 6 and Bluetooth 6 products, should drive sequential growth through the year. 
Bolton also explained that Lattice Semiconductor is poised for the second half of calendar 2025 recovery as the inventory correction in its Industrial &amp; Automotive segment clears and the company ramps up new Nexus and Avant product offerings. 
Lastly, while ON Semiconductor management expects sub-seasonal results in the first half of calendar 2025, Bolton noted the company is highly leveraged to a cyclical recovery and could see the name perform well in the second half of calendar 2025.
Bolton noted Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) (Buy, $160 price target), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), and Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) (Buy, $120 price target) will all benefit from the strong unit growth of XPUs, both general purpose GPUs and hyperscaler custom ASICs, over the coming years.
Bolton&#8217;s favorite ways to play the connectivity trend in AI data centers include:
<ul>
<li>Astera Labs Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALAB#NASDAQ">ALAB</a>) — Buy, $140 price target</li>
<li>Credo Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>) — Buy, $80 price target</li>
<li>MACOM Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>) — Buy, $150 price target</li>
<li>Semtech Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMTC#NASDAQ">SMTC</a>) — Buy, $74 price target. </li>
</ul>
Bolton increased his price targets on Astera Labs $100 to $140 and Credo Technology from $70 to $80. 
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/42900314/nvidia-teams-up-with-dutch-government-to-build-cutting-edge-ai-supercomputer-facility" target="_blank" rel="noreferrer noopener">Nvidia Teams Up with Dutch Government to Build Cutting-Edge AI Supercomputer Facility</a></li>
</ul>
Image: Shutterstock

In the current market session, MACOM Technology Solns Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>) share price is at $136.03, after a 0.43% increase. Moreover, over the past month, the stock decreased by 0.69%, but in the past year, spiked by 60.89%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2025/1736439307_0.png" alt="Past Year Chart" />

<h3>A Look at MACOM Technology Solns P/E Relative to Its Competitors</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Compared to the aggregate P/E ratio of 54.38 in the Semiconductors &amp; Semiconductor Equipment industry, MACOM Technology Solns Inc. has a higher P/E ratio of 130.34. Shareholders might be inclined to think that MACOM Technology Solns Inc. might perform better than its industry group. It's also possible that the stock is overvalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1736439307_1.png" alt="Guage" />

In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company's market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company's stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

Intraday Update

P/E Ratio Insights for MACOM Technology Solns

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Shares of semiconductor companies are trading lower amid overall market weakness following the Fed's rate decision to cut rates by 25 basis points.

MACOM Technology Solns's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NYSE">MTSI</a>) short percent of float has fallen 12.77% since its last report. The company recently reported that it has 3.17 million shares sold short, which is 5.67% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.42 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>MACOM Technology Solns Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1734109216_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for MACOM Technology Solns has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing MACOM Technology Solns's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, MACOM Technology Solns's peer group average for short interest as a percentage of float is 4.90%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into MACOM Technology Solns's Recent Short Interest

Revealing a significant insider sell on November 27, SUSAN OCAMPO, Director at MACOM Technology Solns (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>), as per the latest SEC filing.
What Happened: After conducting a thorough analysis, OCAMPO sold 240,192 shares of MACOM Technology Solns. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001493594/000090445424000634//Archives/edgar/data/1493594/000090445424000634/0000904454-24-000634-index.htm">U.S. Securities and Exchange Commission</a> on Wednesday. The total transaction value is $32,260,128.
MACOM Technology Solns shares are trading up 1.11% at $136.14 at the time of this writing on Wednesday morning.
<h3>Get to Know MACOM Technology Solns Better</h3>
MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Japan, Singapore, South Korea, and other countries across the world.
<h3>Financial Insights: MACOM Technology Solns</h3>
Revenue Growth: MACOM Technology Solns's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 33.47%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Key Insights into Profitability Metrics:
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Gross Margin: Achieving a high gross margin of 54.73%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): MACOM Technology Solns's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.41.
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Debt Management: MACOM Technology Solns's debt-to-equity ratio surpasses industry norms, standing at 0.43. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Valuation Metrics:
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<li>
Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 129.46, MACOM Technology Solns's stock is perceived as being overvalued in the market.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 13.58 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): A high EV/EBITDA ratio of 58.9 reflects market recognition of MACOM Technology Solns's value, positioning it as more highly valued compared to industry peers.
</li>
</ul>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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<h3>The Importance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. 
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Unlocking the Meaning of Transaction Codes</h3>
For <a href="https://www.benzinga.com/money/investing-tools">investors</a>, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001493594">Check Out The Full List Of MACOM Technology Solns's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Insider Decision: SUSAN OCAMPO Offloads $32.26M Worth Of MACOM Technology Solns Stock

Making a noteworthy insider sell on November 20, SUSAN OCAMPO, Board Member at MACOM Technology Solns (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>), is reported in the latest SEC filing.
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0001493594/000090445424000621//Archives/edgar/data/1493594/000090445424000621/0000904454-24-000621-index.htm">U.S. Securities and Exchange Commission</a> on Wednesday showed that OCAMPO sold 601,789 shares of MACOM Technology Solns. The total transaction amounted to $71,203,625. 
Tracking the Thursday's morning session, MACOM Technology Solns shares are trading at $129.9, showing a up of 1.83%.
<h3>Unveiling the Story Behind MACOM Technology Solns</h3>
MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Japan, Singapore, South Korea, and other countries across the world.
<h3>Key Indicators: MACOM Technology Solns's Financial Health</h3>
Revenue Growth: MACOM Technology Solns's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 33.47%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Analyzing Profitability Metrics:
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Gross Margin: The company sets a benchmark with a high gross margin of 54.73%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): MACOM Technology Solns's EPS reflects a decline, falling below the industry average with a current EPS of 0.41.
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Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.43, caution is advised due to increased financial risk.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 122.65 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 12.86 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): A high EV/EBITDA ratio of 55.77 positions the company as being more valued compared to industry benchmarks.
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Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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<h3>Unmasking the Significance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
<h3>Breaking Down the Significance of Transaction Codes</h3>
Delving into transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001493594">Check Out The Full List Of MACOM Technology Solns's Insider Trades.</a>
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Sell Alert: SUSAN OCAMPO Cashes Out $71.20M In MACOM Technology Solns Stock

MACOM Technology Solns's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NYSE">MTSI</a>) short percent of float has fallen 4.1% since its last report. The company recently reported that it has 3.52 million shares sold short, which is 6.31% of all regular shares that are available for trading. Based on its trading volume, it would take traders 8.79 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>MACOM Technology Solns Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732194922_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for MACOM Technology Solns has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing MACOM Technology Solns's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, MACOM Technology Solns's peer group average for short interest as a percentage of float is 4.64%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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Shares of semiconductor companies are trading lower. The sector may be moving amid continued weakness after the U.S. ordered Taiwan Semiconductor Manufacturing to halt shipments of advanced chips to Chinese customers earlier this week.

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