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Vishay Intertechnology Inc . (NYSE:VSH) shares tumbled to a 52-week low, touching down at $20.64 amidst a challenging market environment. The decline marks a significant drop for the semiconductor company, reflecting a broader industry trend influenced by economic headwinds. Over the past year, Vishay Intertechnology has seen its stock price erode by 19.8%, underscoring the pressures faced by the tech sector, including supply chain disruptions and shifting demand patterns. Investors are closely monitoring the company's performance for signs of a turnaround as it navigates through these turbulent times.
In other recent news, Vishay Intertechnology has introduced a new series of 1200 V silicon carbide (SiC) Schottky diodes designed to enhance efficiency and reliability in power conversion applications. These diodes are expected to be used in various demanding environments, such as solar power inverters, energy storage systems, industrial drives, and data centers. In addition to this, the company has reported mixed results for its Q1 2024 earnings. Vishay's revenue reached $746.3 million, slightly above their guidance range, despite a 5% sequential revenue decline primarily due to inventory adjustments in semiconductor products. The aerospace and defense sector saw a growth of 34.2% year-over-year, and automotive revenue also slightly increased. However, industrial revenue dropped by 6.2% and medical revenue fell by 18.3%. The company anticipates the inventory correction to continue into the second quarter but expects a recovery in the latter half of the year. According to the earnings call, Vishay is planning to invest $2.6 billion from 2023 to 2028 for capacity expansion and innovation, including investments in silicon carbide technology. For Q2, Vishay forecasts revenues to be around $750 million with a gross margin of 21.7%.
InvestingPro Insights
Vishay Intertechnology Inc. (VSH) has indeed experienced a notable decline, trading near its 52-week low. InvestingPro data shows a market capitalization of $2.91 billion, with a P/E ratio of 12.31, indicating that the stock may be reasonably valued in the context of its earnings. Despite a challenging year with a revenue decline of 6.75% over the last twelve months as of Q1 2024, the company has maintained a gross profit margin of 26.43%, illustrating its ability to retain a degree of profitability in tough market conditions.
InvestingPro Tips suggest that while analysts anticipate a sales decline in the current year and a potential drop in net income, Vishay Intertechnology has maintained dividend payments for 11 consecutive years, which may appeal to income-focused investors. Furthermore, the company's liquid assets exceed its short-term obligations, providing some financial stability. For investors considering Vishay's long-term prospects, it's worth noting that analysts predict the company will remain profitable this year. Those interested in further analysis and additional tips can find more detailed insights on InvestingPro, which lists 9 tips for Vishay Intertechnology.
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