Integrated Device Technology Inc (IDTI) Shares Jump 23% on Great Earnings Report

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Shares of Integrated Device Technology Inc (NASDAQ:IDTI) are up big this morning after the company released their Q3 Fiscal Year 2016 report after the close of the market on Monday. The quarter saw revenue jump up 4.8% quarter-over-quarter and 17.5% year-over-year to an astounding $177.6 million. Additionally, GAAP diluted earnings per share came in at $0.22 and Non-GAAP came in at $0.35 per share.

“We achieved a number of key milestones in the third quarter of fiscal 2016,” explained Greg Waters, president and chief executive officer. “On December 7th, we closed the acquisition of ZMDI and the following week we executed a $374 million convertible note offering, with a concurrent accelerated share repurchase program. We delivered our 9th consecutive quarter of year-over-year revenue growth, driven by strong demand for our communications infrastructure products. With our continued focus on operational excellence, we achieved a non-GAAP operating margin of 29.4 percent, and record free cash flow of 30 percent of revenue on a trailing twelve-month basis.”

“The integration of recently acquired ZMDI is progressing well, and we are already leveraging the combined product portfolios into potent customer cross-selling opportunities. Additionally, as synergies are realized over the coming year, we expect the acquisition to provide meaningful revenue and EPS accretion, while supporting IDT’s target operating model,” Mr. Waters continued.

The stock is down 23.53% or $6 following the news, hitting $19.5 per share. Approximately 303,238 shares traded hands. IDTI shares have risen 16.39% since June 26, 2015 and are currently uptrending. It has outperformed the S&P500 by 24.10%.

From a total of 8 analysts covering Integrated Device (NASDAQ:IDTI) stock, 6 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $35.0 while the lowest target price is $21. The mean of all analyst targets is $28.17 which is 44.46% above today’s ($19.5) stock price. Integrated Device was the topic of 11 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Pacific Crest initiated shares on December 15 with a “Overweight” rating. Zacks upgraded shares to a”Hold” rating and a $22 target share price in their report from an August 6. Dougherty & Company maintained IDTI stock in a recent report from October 27 with a “Buy” rating. Finally, Bank of America initiated the stock with a “Buy” rating in a report they issued on a September 18.

The institutional sentiment decreased to 0.87 in Q2 2015. It’s down 0.42, from 1.29 in 2015Q2. The ratio dived, as 53 funds sold all their Integrated Device Technology Inc shares they owned while 110 reduced their positions. 37 funds bought stakes while 105 increased their total positions. Institutions now own 136.21 million shares which is 3.90% less than the previous share count of 141.74 million in 2015Q2.

Sarbit Advisory Services Inc. holds 19.25% of its total portfolio in Integrated Device Technology Inc, equating to 6.14 million shares. Venator Capital Management Ltd. owns 452,665 shares representing 12.72% of their total US portfolio. Moreover, Bodri Capital Management Llc has 2.52% of their total portfolio invested in the company, equating to 125,000 shares. The New York-based Msf Capital Llc has a total of 2.31% of their portfolio invested in the stock. Nichols Asset Management Llc, a Massachusetts-based fund reported 435,285 shares owned.

Since March 11, 2015, the stock had 0 insider purchases, and 5 sales for a total of $1.76 million in net activity. Naghavi Arman sold 10,570 shares worth $209,075. Montana Mario sold 7,928 shares worth $156,816. Fan Xianzhi Sean sold 7,928 shares worth $156,816. Smith Ronald James sold 10,000 shares worth $206,600. The insider White Brian C sold 1,250 shares worth $29,674.

Integrated Device Technology, Inc. is a developer of mixed-signal semiconductor solutions. The company has a market cap of $2.86 billion. The Firm offers semiconductors for communications infrastructure in both wired and wireless. It has 19.38 P/E ratio. It designs, develops, makes and markets a range of semiconductor.

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