Analysts Set Amkor Technology, Inc. (NASDAQ:AMKR) Target Price at $35.50

Recent analysis from ten financial analysts covering Amkor Technology, Inc. (NASDAQ:AMKR) has resulted in a consensus rating of "Moderate Buy." This rating reflects a balanced perspective, with five analysts recommending a hold on the stock and the other five suggesting a buy. The average target price set by these brokerages for the next twelve months is $35.50.

In the latest round of research, Amkor Technology has faced various adjustments in ratings and price targets. Melius Research downgraded the company from a "strong-buy" rating to a "hold" rating on January 6, 2025, while also lowering its price target from $34.00 to $30.00. Meanwhile, StockNews.com made a similar downgrade on October 29, reducing its rating from "buy" to "hold."

Furthermore, Needham & Company LLC decreased its price target on Amkor Technology significantly, moving it from $45.00 to $34.00, while maintaining a "buy" rating. Similarly, Morgan Stanley adjusted its price target from $35.00 down to $26.00, assigning an "equal weight" rating.

Investment Movements

Institutional investors have been active with their investments in AMKR recently. Envestnet Asset Management Inc. raised its stake by 13.6% during the second quarter, increasing its holdings to 431,233 shares valued at approximately $17.3 million after acquiring an additional 51,711 shares. Massachusetts Financial Services Co. MA also expanded its stake by 10.1%, now owning 152,393 shares worth $6.1 million after adding 14,012 shares.

Renaissance Technologies LLC demonstrated a substantial increase, boosting its stake by a remarkable 2,001.4%, acquiring 151,300 shares valued at $6.1 million after adding 144,100 shares. Additionally, Amalgamated Bank increased its position by 22.1%, and Vanguard Personalized Indexing Management LLC raised its stake by 12.5% during the same period. Currently, institutional investors hold approximately 42.76% of the stock.

Amkor Technology's Financial Overview

AMKR began trading at $26.72. The company maintains a solid financial position, with a debt-to-equity ratio of 0.21, a quick ratio of 1.84, and a current ratio of 2.06. With a market capitalization of around $6.59 billion, its P/E ratio stands at 18.05, and the stock presents a beta of 1.83. The 50-day moving average is reported at $26.10, while the 200-day moving average is $29.96. The stock's performance over the past year has seen a low of $24.10 and a high of $44.86.

Amkor Technology recently reported its earnings results on October 28, revealing an earnings per share (EPS) of $0.49 for the quarter, falling short of the consensus estimate of $0.50 by $0.01. The company recorded a net margin of 5.68% and a return on equity of 8.98%, with quarterly revenues reaching $1.86 billion, slightly above the expected $1.84 billion. For the current year, analysts anticipate an EPS increase to 1.38.

Dividend Update

In another positive development, Amkor Technology has announced an increase in its quarterly dividend, which was issued on December 23. Shareholders of record on December 4 received a dividend of $0.0827, marking an annualized total of $0.33, corresponding to a yield of 1.24%. This marks an increase from the previous quarterly dividend of $0.08. Currently, the dividend payout ratio stands at 22.30%.

Company Profile

Amkor Technology, Inc. specializes in providing outsourced semiconductor packaging and test services. The company's operations span across the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. Services offered include a range of packaging and testing solutions, including semiconductor wafer bump, package design, and final testing services, with products catering to customers in the mobile device and computing sectors.

Amkor, Technology, Investment