PLAB Should I Buy
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PLAB is not a good buy right now for an impatient investor. Despite a still-bullish moving-average structure and supportive analyst upgrades, near-term momentum is weakening (MACD turning down), the stock is trading below the pivot (35.39), and insider selling has surged. The better risk/reward entry is closer to support (33.13) or on a clear momentum re-acceleration; at the current price (~34.65) the setup is more “wait/hold” than “buy now.”
Trend/Momentum: The broader trend remains constructive with bullish moving averages (SMA_5 > SMA_20 > SMA_200), but the near-term tape is soft: MACD histogram is negative (-0.093) and expanding lower, implying downside momentum building. RSI(6) 54 is neutral (no oversold bounce signal). Levels: Price (34.65) is below the pivot (35.387), which acts as near-term overhead resistance; first support is S1 ~33.127 (key level to hold for the uptrend to stay orderly). Upside levels are R1 ~37.647 then R2 ~39.044 if price reclaims the pivot and momentum improves. Near-term pattern stats provided suggest modest upside bias (approx +0.27% next day, +2.05% next week, +3.23% next month), but current indicators argue for chop/pullback risk before that plays out.
Wall Street upgrades/target raises: DA Davidson lifted PT to $45 (from $
and kept Buy; Craig-Hallum lifted to $42 (from $
and kept Buy—both point to improving outlook and capacity/ramp benefits.
Operations narrative: ramping Allen, Texas facility and freeing Boise for higher-end applications could support mix/share gains.
Upcoming earnings: QJAN 2026 earnings on 2026-02-23 (pre-market) can act as an event catalyst if results/guide confirm stabilization and higher-end strength.
Options market sentiment is decisively bullish (very low put/call ratios).
Insider activity: insiders are selling, with selling amount up ~611.48% over the last month—this is a meaningful near-term confidence overhang.
Near-term technical momentum is weakening (MACD negative and falling) and the stock is below the pivot (35.39), increasing risk of a drift toward support (33.13).
Fundamentals mix: revenue declined YoY and gross margin compressed (see financials), suggesting the growth/margin profile is not uniformly improving.
No supportive news flow in the last week; without fresh catalysts, price can mean-revert lower during a momentum cooldown.
Latest quarter (2025/Q4): Revenue was $215.77M (-3.08% YoY), showing top-line softness. Profitability improved sharply: Net income $61.80M (+82.47% YoY) and EPS $1.07 (+98.15% YoY), suggesting strong operating leverage and/or favorable items versus prior year. However, gross margin fell to 35.01% (-5.30% YoY), which is a caution flag on product mix/pricing/cost pressures even as bottom-line results surged.
Recent trend: clearly improving. On 2025-12-11, DA Davidson raised its price target to $45 (from $30) and reiterated Buy, citing Q4 outperformance driven by strong high-end IC activity and stabilizing mainstream IC trends, with an FPD slowdown resolved. The same day, Craig-Hallum raised its target to $42 (from $36) and reiterated Buy, emphasizing capacity ramp at Allen, TX, and positioning for share gains amid regionalization/outsourcing. Wall Street pros: capacity expansion, higher-end mix, stabilization in mainstream IC, and improving share opportunity. Cons: mainstream IC had been under pressure (China design cycles), and recent margin compression plus heavy insider selling temper conviction on buying immediately at current levels.
