Cohu stock touches 52-week low at $22.79 amid market challenges

Cohu (NASDAQ:COHU), Inc., a leading supplier of semiconductor test and inspection handlers, has seen its stock price touch a 52-week low, dipping to $22.79. This latest price level reflects a significant downturn from previous periods, marking a stark contrast to the more robust performance seen in the past. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 6.38, while management has been actively buying back shares, demonstrating confidence in the company's future. Over the last year, Cohu's stock has experienced a substantial decline, with the 1-year change data indicating a decrease of -30.28%. This downturn mirrors broader market trends and challenges within the semiconductor industry, including supply chain disruptions and fluctuating demand for semiconductor equipment. Investors and analysts are closely monitoring Cohu's performance as the company navigates through these industry headwinds. With a market capitalization of $1.07 billion and a beta of 1.47, the stock shows higher volatility than the broader market. For deeper insights and additional ProTips about Cohu's financial health and market position, explore the comprehensive analysis available on InvestingPro.

In other recent news, Cohu, a semiconductor equipment manufacturer, has seen a series of significant developments. The company's stock rating was recently downgraded by Needham from Buy to Hold due to projections of a moderate equipment cycle over the next two years. Needham analysts expressed skepticism about Cohu's ability to achieve the aggressive growth rates needed to sustain its current market valuation.

Simultaneously, Cohu has completed the acquisition of Tignis, Inc., an artificial intelligence (AI) process control and analytics software company. This strategic move aims to enhance semiconductor manufacturing yield and productivity, despite a revenue decline of 35.54% in the last twelve months.

In terms of financial performance, Cohu reported steady results for the third quarter of 2024, with revenues reaching $95.3 million and a gross margin of 47%. A significant 67% of this total revenue came from recurring sources. TD Cowen, after reviewing Cohu's recent financial performance, trimmed its price target for the company to $30.00 from the previous $36.00 but maintained a Buy rating.

Furthermore, Cohu is making strategic advancements into high growth areas like high bandwidth memory and silicon carbide markets. Despite near-term challenges, the company's success in controlling costs and securing new design wins lays a foundation for growth. Looking ahead, Cohu expects a 10% revenue increase for Q1 2025. These recent developments underscore Cohu's resilience and potential for growth in the semiconductor sector.

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