Shares of Amkor Technology (NASDAQ: AMKR), a semiconductor packaging and test services company, were falling today after the company’s stock received a downgrade from Credit Suisse analyst Randy Abrams.
The tech stock had fallen by 11.3% as of 3:46 p.m. EDT.
Abrams downgraded Amkor’s stock to a neutral rating, down from outperform, and put a price target on the stock of $27, which was down from $28.50. While that wasn’t welcome news, the analyst still believes the company could reach the higher end of its third-quarter sales guidance.
Of course, investors don’t like to see a stock get downgraded or for its target price to be lowered, so it’s no surprise that Amkor’s stock took a hit today.
But today’s drop may sting a little more than usual considering that the stock has been sliding over the past four weeks and, with today’s drop, Amkor’s share price is down nearly 20% over the past month.
Amkor released solid results for the second quarter (reported on Oct. 4), with sales increasing 20% and EBITDA spiking 40% from the year-ago quarter.
The company’s management also issued guidance for the third quarter, with sales expected to be in the range between $1.65 billion to $1.75 billion. That represents a nearly 30% increase, at the high end of Amkor’s guidance.
While today’s share price dive isn’t a fun experience, long-term investors may want to take it in stride. Amkor’s stock is still up 77% over the past year and, based on its revenue guidance for the third quarter, the company appears to be on pace for more growth.
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