MACOM Technology Solutions sees 4.3% decrease in stake by Emerald Advisers LLC in 2nd quarter
September 10, 2024
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MACOM ($NASDAQ:MTSI) Technology Solutions Holdings, Inc. is a leading provider of high-performance analog semiconductor solutions for the communications, aerospace and defense, and industrial markets. Its highly skilled engineering team and state-of-the-art manufacturing facilities allow the company to deliver cutting-edge solutions that meet the ever-evolving needs of its customers. As a result, MACOM has consistently generated strong financial performance and positioned itself as a leader in the industry.
However, in the second quarter of 2019, MACOM faced a slight decrease in stake by one of its major investors, Emerald Advisers LLC. This decrease amounted to 4.3% of its total investment in the company. This news may have caused some concern among shareholders, but it is important to note that this decrease does not necessarily reflect the performance or potential of MACOM as a company. Emerald Advisers LLC is a Pennsylvania-based investment management firm that specializes in small and mid-cap companies. They employ a disciplined investment approach and have a diverse portfolio of companies across various industries. It is not uncommon for investment firms to make changes to their portfolios based on market conditions or their own investment strategies. Therefore, this decrease in stake should not be seen as an indication of MACOM’s financial health or future prospects. In fact, MACOM has continued to show strong financial performance in recent years.
In addition, MACOM has also made strategic investments and partnerships to expand its product portfolio and market reach. For example, the company recently acquired Applied Micro Circuits Corporation, a leader in data center connectivity solutions, which has allowed MACOM to strengthen its position in the data center market and expand its customer base. With a strong track record, innovative products, and a solid market position, the company is well-positioned to continue its growth trajectory in the coming years.
Analysis
After conducting a thorough analysis of MACOM TECHNOLOGY SOLUTIONS’s fundamentals, I have determined that this company is strong in terms of assets and profitability. This is evident from their financial statements, which show a healthy balance sheet and consistent earnings over the years. However, their growth potential seems to be moderate, as they are not showing significant growth in revenue or market share. Additionally, MACOM TECHNOLOGY SOLUTIONS is weak in terms of dividend payouts, which may be a concern for some investors who prioritize regular returns. This is mainly due to its strong cashflows and manageable levels of debt. This indicates that the company is capable of sustaining its operations even in times of crisis, which is a positive sign for investors. Furthermore, the company’s classification as an ‘elephant’ suggests that it is rich in assets after deducting off liabilities. This further strengthens the company’s position and makes it a potentially attractive investment opportunity. Based on this analysis, I believe that MACOM TECHNOLOGY SOLUTIONS may be of interest to investors who value stability and strong financials. The company’s solid asset base and consistent profitability make it an appealing option for those looking for long-term investments. Additionally, its strong cashflows and manageable debt make it a lower-risk choice compared to other companies. However, investors who prioritize high dividends or rapid growth may not find MACOM TECHNOLOGY SOLUTIONS as attractive, as these aspects seem to be weaker for the company. Overall, I would recommend interested investors to do further research and consider their own investment goals before making any decisions regarding MACOM TECHNOLOGY SOLUTIONS. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MTSI. More…
| Total Revenues | Net Income | Net Margin |
| 625.45 | 74.58 | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MTSI. More…
| Operations | Investing | Financing |
| 161.74 | 9.52 | -133.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MTSI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.65k | 626.71 | 14.21 |
Key Ratios Snapshot
Some of the financial key ratios for MTSI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.8% | 45.5% | 16.3% |
| FCF Margin | ROE | ROA |
| 22.7% | 6.6% | 3.9% |
Peers
The semiconductor industry is intensely competitive, with companies vying for market share in a number of key areas. MACOM Technology Solutions Holdings Inc is no exception, and it competes directly with Melexis NV, Hua Hong Semiconductor Ltd, and Nova Ltd in a number of key markets. All four companies are leaders in the industry, and all are committed to innovation and to providing the best products and services to their customers.
– Melexis NV ($BER:MEX)
Melexis NV is a publicly traded semiconductor company with a market capitalization of 3.34 billion as of 2022. The company’s return on equity, a measure of profitability, was 28.95% in that same year. Melexis NV designs, develops, and manufactures integrated circuits and other semiconductor devices. Its products are used in a variety of applications, including automotive, consumer electronics, and industrial.
– Hua Hong Semiconductor Ltd ($SEHK:01347)
Hua Hong Semiconductor Ltd is a world-leading semiconductor foundry that offers advanced technologies and services for a wide range of applications. The company’s market cap as of 2022 is $34 billion, and its ROE is 9.22%. Hua Hong Semiconductor is a major supplier of semiconductor chips for a variety of applications, including mobile phones, computers, and consumer electronics. The company has a strong presence in China and other Asian markets, and is expanding its reach into the global market.
– Nova Ltd ($NASDAQ:NVMI)
Nova Ltd is a leading provider of integrated engineering solutions in the Asia-Pacific region. The company has a market cap of 2.48B as of 2022 and a ROE of 19.83%. Nova Ltd provides engineering solutions for a wide range of industries including power, oil and gas, mining, construction, and others. The company has a strong presence in the Asia-Pacific region and has a diversified customer base. Nova Ltd is committed to providing quality engineering solutions and services to its customers.
Summary
Emerald Advisers LLC, an investment firm, decreased its ownership in MACOM Technology Solutions Holdings, Inc. by 4.3% in the second quarter. This indicates a possible lack of confidence in the stock by the firm, possibly due to poor performance or changes in market conditions. Investors should carefully consider this decrease in ownership when making investment decisions about MACOM Technology Solutions.
It may be wise to conduct further research and analysis on the company and its industry before making any significant investment decisions. This decrease in stake could also potentially impact the stock’s future performance and should be taken into consideration by investors.
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