Zacks Investment Research Upgrades Ultra Clean (NASDAQ:UCTT) to Strong-Buy

Ultra Clean (NASDAQ:UCTT) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report released on Friday, Zacks.com reports. The brokerage currently has a $29.00 target price on the semiconductor company’s stock. Zacks Investment Research‘s target price would indicate a potential downside of 3.62% from the stock’s previous close.

According to Zacks, “ULTRA CLEAN HOLDINGS, INC. is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean’s customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean is headquartered in Menlo Park, California. “

UCTT has been the subject of a number of other research reports. Stifel Nicolaus lifted their price target on Ultra Clean from $23.00 to $26.00 and gave the stock a “hold” rating in a report on Thursday. BidaskClub raised Ultra Clean from a “buy” rating to a “strong-buy” rating in a report on Friday, June 19th. Craig Hallum raised their price target on Ultra Clean from $35.00 to $40.00 and gave the company a “buy” rating in a report on Thursday. ValuEngine cut shares of Ultra Clean from a “hold” rating to a “sell” rating in a research report on Thursday, July 2nd. Finally, Needham & Company LLC increased their price objective on shares of Ultra Clean from $26.00 to $35.00 and gave the company a “buy” rating in a research report on Thursday. One analyst has rated the stock with a sell rating, three have assigned a hold rating, two have given a buy rating and two have assigned a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus price target of $31.00.

NASDAQ UCTT opened at $30.09 on Friday. Ultra Clean has a 12 month low of $11.20 and a 12 month high of $31.10. The company has a current ratio of 2.49, a quick ratio of 1.60 and a debt-to-equity ratio of 0.73. The stock has a 50 day moving average of $23.02 and a 200-day moving average of $20.59. The company has a market cap of $1.20 billion, a PE ratio of 60.18, a PEG ratio of 2.37 and a beta of 1.69.

Ultra Clean (NASDAQ:UCTT) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $0.75 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.41 by $0.34. The firm had revenue of $344.70 million for the quarter, compared to analyst estimates of $265.90 million. Ultra Clean had a net margin of 1.74% and a return on equity of 14.79%. The company’s quarterly revenue was up 29.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.21 earnings per share. As a group, sell-side analysts predict that Ultra Clean will post 1.59 EPS for the current fiscal year.

In other Ultra Clean news, Director Thomas T. Edman sold 5,000 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $20.52, for a total value of $102,600.00. Following the transaction, the director now directly owns 19,899 shares of the company’s stock, valued at approximately $408,327.48. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 2.20% of the company’s stock.

Several hedge funds have recently modified their holdings of UCTT. Geode Capital Management LLC grew its position in Ultra Clean by 12.7% during the fourth quarter. Geode Capital Management LLC now owns 606,278 shares of the semiconductor company’s stock worth $14,229,000 after buying an additional 68,328 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of Ultra Clean by 30.6% during the 1st quarter. JPMorgan Chase & Co. now owns 537,153 shares of the semiconductor company’s stock valued at $7,412,000 after acquiring an additional 125,813 shares during the period. Nuveen Asset Management LLC lifted its position in shares of Ultra Clean by 30.2% during the 4th quarter. Nuveen Asset Management LLC now owns 386,790 shares of the semiconductor company’s stock valued at $9,078,000 after acquiring an additional 89,677 shares during the period. Monarch Partners Asset Management LLC increased its position in shares of Ultra Clean by 850.8% in the first quarter. Monarch Partners Asset Management LLC now owns 311,832 shares of the semiconductor company’s stock worth $4,303,000 after purchasing an additional 279,035 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake in Ultra Clean by 79.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 238,559 shares of the semiconductor company’s stock valued at $5,599,000 after purchasing an additional 105,926 shares in the last quarter. Institutional investors and hedge funds own 87.32% of the company’s stock.

About Ultra Clean

Ultra Clean Holdings, Inc designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor and display capital equipment industries primarily in North America, Asia, and Europe. It offers precision robotic systems that are used when accurate controlled motion is required; gas delivery systems, which include one or more gas lines consisting of small diameter internally polished stainless steel tubing products, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system; and various industrial and automation production equipment products.

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