In a challenging market environment, Vishay Intertechnology Inc . (NYSE:VSH) stock has touched a 52-week low, with shares falling to $19.55. The decline reflects broader sector trends and has been a significant shift from the company's performance over the past year. Vishay, a key player in the manufacture of discrete semiconductors and passive electronic components, has seen its stock price decrease by 27.22% over the last year. This downturn has investors closely monitoring the company's performance, seeking signs of a potential rebound or further market adjustments. The 52-week low serves as a critical indicator for the company's valuation and could potentially attract investors looking for undervalued opportunities in the tech sector.
In other recent news, Vishay Intertechnology has reported its Q2 2024 earnings, with revenues of $741.2 million, virtually unchanged from the previous quarter. The company also announced a dividend of $0.10 per share for both common stock and Class B common stock. In addition, TD Cowen has maintained a Hold rating on Vishay's shares, albeit with a reduced price target from $24.00 to $22.00.
Vishay is planning strategic investments for capacity expansion, with $2.6 billion allocated from 2023 to 2028. The company aims to increase MOSFET capacity by 12% in 2025 and semiconductor products by 5.5% in 2024. Furthermore, it has broadened its market presence by acquiring Ametherm, which is expected to enhance its standing in the electric vehicle and battery management system markets.
For Q3 2024, Vishay anticipates revenues to be between $725 million and $765 million, with a predicted gross margin of 21.0%. The company is also making progress with its expansion project in Turin, Italy, with commercial diode shipments anticipated soon. These are some of the recent developments in the company's operations.
InvestingPro Insights
In light of Vishay Intertechnology Inc.'s (VSH) recent stock performance, real-time data from InvestingPro offers a deeper understanding of the company's current financial status. With a market capitalization of $2.68 billion and a P/E ratio standing at 15.82, the company appears to be moderately valued in comparison to earnings. However, the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 14.52, which may indicate a more favorable earnings perspective moving forward. Despite recent declines, Vishay maintains a solid gross profit margin of 24.68%, showcasing the company's ability to retain a significant portion of revenue after the cost of goods sold is accounted for.
InvestingPro Tips highlight that Vishay has been consistent with its dividend payments for 11 consecutive years, which could be a point of interest for income-focused investors, especially considering the stock is trading near its 52-week low. Moreover, analysts predict the company will remain profitable this year, a positive sign amidst concerns of a sales decline and an expected net income drop. For investors seeking a comprehensive analysis, there are an additional 8 InvestingPro Tips available, which further detail Vishay's financial health and market position. To explore these insights, visit the dedicated page for Vishay on InvestingPro.
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