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In a challenging market environment, Amkor Technology Inc. (NASDAQ:AMKR) stock has reached a 52-week low, dipping to $14.94. According to InvestingPro data, the company maintains strong fundamentals with a healthy current ratio of 2.11 and trades at an attractive P/E ratio of 10.14, while technical indicators suggest the stock is currently oversold. The semiconductor packaging and test services provider has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -51.97%. Investors are closely monitoring the company’s performance as it navigates through industry-wide pressures, including supply chain disruptions and fluctuating demand within the tech sector. The current price level marks a critical point for Amkor, as market participants consider the company’s strategic moves to rebound from this low point. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US equities.
In other recent news, Amkor Technology reported fourth-quarter earnings that exceeded analyst expectations, with an adjusted earnings per share of $0.43 compared to the estimated $0.38. However, the company’s revenue for the quarter was $1.63 billion, slightly below the consensus estimate of $1.66 billion, marking a 7% year-over-year decline. Amkor’s guidance for the first quarter of 2025 disappointed analysts, with projected earnings per share between $0.01 and $0.17, falling short of the expected $0.31, and revenue estimates ranging from $1.225 billion to $1.325 billion, below the anticipated $1.464 billion.
KeyBanc Capital Markets revised its price target for Amkor Technology to $27 from $34, maintaining an Overweight rating despite a cautious outlook for 2025. DA Davidson, on the other hand, reiterated a Buy rating with a $36 price target, expressing optimism about Amkor’s potential to recover from short-term challenges, including the loss of a key system-in-a-package socket. UBS also adjusted its price target to $27.65 from $32.50, maintaining a Neutral rating and expressing concerns about Amkor’s sales guidance and capital expenditure growth.
Amkor Technology’s full-year 2024 net sales were $6.32 billion, a decrease from $6.50 billion in 2023, with net income of $354 million compared to $360 million the previous year. The company highlighted positive developments, such as the ramp-up of its new Vietnam facility and record revenue in its Advanced SiP segment. Additionally, Amkor’s board approved a 5% increase in the quarterly cash dividend and a special cash dividend, reflecting confidence in the company’s financial stability.
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