Amkor Technology (NASDAQ:AMKR) Shares Gap Up – Here’s Why

Amkor Technology, Inc. (NASDAQ:AMKR) gapped up before the market opened on Tuesday. The stock had previously closed at $36.81, but opened at $38.58. Amkor Technology shares last traded at $38.7820, with a volume of 1,689,331 shares.

Key Amkor Technology News

Here are the key news stories impacting Amkor Technology this week:

• Positive Sentiment: Improved profitability and computing demand: Third-quarter revenue was $1.99 billion and EPS was $0.76, below estimates of approximately $2.04 billion and $0.78. However, gross margin expanded to 18.3%, operating margin reached 11.3% and net income increased to $191 million from $128 million a year earlier. Computing and automotive revenue reached records, helping offset weaker communications demand. Amkor Technology Stock Is Gaining Tuesday: What’s Going On?
• Positive Sentiment: AI expansion supports the growth outlook: Management highlighted AI-driven computing growth, advanced-packaging momentum and a planned $12 billion Arizona expansion. Amkor’s reported relationships with NVIDIA and TSMC, along with a separate $3 billion AI packaging opportunity, are reinforcing the longer-term investment case. Amkor Q3 Earnings Call Highlights AI Growth and Capacity Expansion
• Positive Sentiment: Analysts still see substantial potential: Needham maintained a “buy” rating with a $55 target, while Morgan Stanley retained an “equal weight” rating and a $63 target. Although both targets were reduced, they remain well above the recent share price. Needham analyst recommendation
• Neutral Sentiment: Mixed near-term outlook: Advanced packaging and computing demand are improving, but smartphone and broader communications weakness could pressure near-term results and guidance.
• Negative Sentiment: Results missed expectations: The quarterly EPS and revenue shortfalls, together with reports that guidance fell below estimates, remain significant risks for investors. Amkor Technology slips as Q3 results and guidance miss estimates
• Negative Sentiment: Bearish positioning signals caution: Reported insider activity showed selling without purchases during the past six months, while put-option volume was substantially above average ahead of earnings.

Analyst Upgrades and Downgrades

Several research analysts have commented on AMKR shares. Zacks Research cut shares of Amkor Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. B. Riley Financial dropped their target price on shares of Amkor Technology from $46.00 to $41.00 and set a “neutral” rating on the stock in a research report on Tuesday. Needham & Company LLC cut their price target on shares of Amkor Technology from $90.00 to $55.00 and set a “buy” rating on the stock in a report on Tuesday. Weiss Ratings upgraded shares of Amkor Technology from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, July 31st. Finally, UBS Group raised shares of Amkor Technology from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $80.00 to $90.00 in a research note on Friday, July 24th. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Amkor Technology has a consensus rating of “Moderate Buy” and a consensus target price of $60.00.

Amkor Technology Stock Performance

The firm’s fifty day moving average is $49.07 and its 200 day moving average is $57.29. The firm has a market capitalization of $9.69 billion, a price-to-earnings ratio of 17.44, a PEG ratio of 0.48 and a beta of 2.21. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.17 and a quick ratio of 1.91.

Amkor Technology (NASDAQ:AMKR) last announced its quarterly earnings results on Monday, October 26th. The semiconductor company reported $0.76 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.02). The business had revenue of $1.99 billion for the quarter, compared to analyst estimates of $2.04 billion. Amkor Technology had a return on equity of 12.27% and a net margin of 7.45%. The business’s revenue for the quarter was up .2% compared to the same quarter last year. During the same quarter last year, the company earned $0.51 EPS. On average, analysts predict that Amkor Technology, Inc. will post 2.60 EPS for the current fiscal year.

Amkor Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 2nd were issued a $0.0835 dividend. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $0.33 dividend on an annualized basis and a yield of 0.9%. Amkor Technology’s dividend payout ratio is 14.80%.

Insider Buying and Selling

In other news, CEO Kevin K. Engel sold 3,221 shares of the company’s stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $47.00, for a total transaction of $151,387.00. Following the completion of the transaction, the chief executive officer owned 9,666 shares of the company’s stock, valued at approximately $454,302. This represents a 24.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Douglas A. Alexander sold 5,000 shares of the stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $55.00, for a total transaction of $275,000.00. Following the completion of the sale, the director owned 29,109 shares of the company’s stock, valued at approximately $1,600,995. The trade was a 14.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 46,221 shares of company stock worth $2,538,507. 26.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Amkor Technology

Several large investors have recently added to or reduced their stakes in AMKR. Park Avenue Securities LLC bought a new stake in shares of Amkor Technology in the 3rd quarter worth approximately $229,000. Signaturefd LLC boosted its stake in Amkor Technology by 7.3% during the third quarter. Signaturefd LLC now owns 5,714 shares of the semiconductor company’s stock worth $299,000 after buying an additional 390 shares in the last quarter. Sowell Financial Services LLC boosted its stake in Amkor Technology by 19.2% during the third quarter. Sowell Financial Services LLC now owns 33,703 shares of the semiconductor company’s stock worth $1,765,000 after buying an additional 5,417 shares in the last quarter. Wedbush Securities Inc. increased its holdings in Amkor Technology by 6.7% in the 3rd quarter. Wedbush Securities Inc. now owns 4,395 shares of the semiconductor company’s stock valued at $230,000 after buying an additional 275 shares during the period. Finally, Yousif Capital Management LLC increased its holdings in Amkor Technology by 1.6% in the 3rd quarter. Yousif Capital Management LLC now owns 32,062 shares of the semiconductor company’s stock valued at $1,679,000 after buying an additional 498 shares during the period. Institutional investors and hedge funds own 42.76% of the company’s stock.

Amkor Technology Company Profile

Amkor Technology, Inc is a provider of outsourced semiconductor packaging and test services. The company helps semiconductor manufacturers and electronics companies assemble, package and test integrated circuits before they are incorporated into finished electronic products.

Amkor’s services include wafer bumping, wafer-level packaging, flip-chip packaging, system-in-package solutions, fan-out packaging, leadframe and laminate-based packaging, and semiconductor testing. Its products and services support applications including mobile and consumer electronics, communications, automotive, computing, industrial equipment, and memory devices.

Founded in 1968, Amkor has grown into a global semiconductor supply-chain partner with manufacturing and testing operations across regions including Asia, Europe and the United States.