Amkor Technology stock hits 52-week low at $21.45

Amkor Technology , Inc. (NASDAQ:AMKR) stock has reached a 52-week low, trading at $21.45. According to InvestingPro analysis, the company maintains a healthy financial position with a current ratio of 2.11, indicating strong liquidity. The stock currently trades at a P/E ratio of 15.07, with analysts setting price targets between $24 and $36. This price level reflects a significant downturn for the semiconductor packaging and test services provider, as investors respond to market pressures and industry challenges. Over the past year, Amkor Technology has seen its stock value decrease by 27.74%, with particularly volatile price movements. Despite recent challenges, the company maintains moderate debt levels and strong liquidity positions. The 52-week low serves as a critical indicator for investors who track the stock’s performance, considering both short-term trading opportunities and long-term investment potential. For deeper insights into AMKR’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Amkor Technology reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.43 compared to the anticipated $0.38. However, revenue for the quarter was $1.63 billion, slightly below the forecasted $1.66 billion and marking a 7% decline year-over-year. The company’s guidance for the first quarter of 2025 fell short, projecting earnings per share between $0.01 and $0.17 and revenue between $1.225 billion and $1.325 billion, both below analyst expectations. For the full year 2024, Amkor reported net sales of $6.32 billion, a decrease from $6.50 billion in 2023, with net income slightly down to $354 million.

Amkor’s guidance and cautious outlook for 2025 have led to some adjustments by analysts. KeyBanc Capital Markets revised its price target for Amkor to $27.00 from $34.00, maintaining an Overweight rating despite concerns about low margins and reduced visibility in some market segments. UBS also adjusted its price target to $27.65 from $32.50, keeping a Neutral rating while expressing concerns about sales guidance and capital expenditure growth. On a more optimistic note, DA Davidson maintained a Buy rating with a $36.00 price target, expressing confidence in Amkor’s potential to recover lost business and capitalize on future growth opportunities.

Amkor’s challenges include the temporary loss of a key system-in-a-package socket and the transition to advanced packaging technology. Despite these hurdles, the company is focusing on strategic initiatives such as the ramp-up of its Vietnam facility and securing CHIPS funding for U.S. manufacturing. The board approved a 5% increase in the quarterly cash dividend and a special cash dividend, reflecting ongoing shareholder returns amid a challenging market environment.

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