7. Vishay Intertechnology, Inc. (NYSE:VSH)
Number of Hedge Fund Holders: 19
1-Year Share Price Decline as of September 4: 28.19%
52 Week Range: $18.72 – $25.50
Vishay Intertechnology, Inc. (NYSE:VSH) is an American manufacturing company that specializes in discrete semiconductors and passive electronic components. On September 3, the stock reached its 52-week low of $18.93 per share as it dealt with challenges in the global semiconductor industry, such as supply chain disruptions and fluctuating demand. In the past 12 months, the stock is down by over 28%.
In the second quarter of 2024, Vishay Intertechnology, Inc. (NYSE:VSH) reported revenue of $741.2 million, which showed a 17% decline from the prior year period. As the first half of the year has already passed, it has become clear that the industry’s recovery is proceeding more slowly than initially anticipated. Consequently, Vishay Intertechnology is extending the timeline for the Itzehoe, Germany expansion project beyond 2024, while maintaining its planned capital investment of $2.6 billion from 2023 to 2028. For 2024, the company now plans to allocate between $360 million and $390 million towards capital expenditures.
Despite the challenging outlook, Vishay Intertechnology, Inc. (NYSE:VSH) intends to expand its capacity and improve its margins in the upcoming quarters. This was also highlighted by First Pacific Advisors in its Q2 2024 investor letter. Here is what the firm said about VSH:
“Vishay Intertechnology, Inc. (NYSE:VSH) is a manufacturer of discrete semiconductors and passive components, mostly for the general industrial and auto markets. Although the industry is cyclical, competitive dynamics are stable and VSH benefits from electric vehicles and industrial electrification. Vishay’s products are similar to ball bearings but for a technological rather than a mechanical economy: high value-to-cost, and they go into nearly everything. Shares have followed operating performance that has drifted down from post-Covid highs following the industrial cycle and a slowdown in electric vehicle (EV) production. Management has an ambitious plan to grow capacity, sales, and margins. We are cautiously optimistic and have been incrementally adding to our position.”
Vishay Intertechnology, Inc. (NYSE:VSH) could be grabbing investors’ attention due to this positive outlook. The company’s ongoing dedication to its shareholders is also a key factor contributing to its increasing popularity. In the first six months of the year, it returned $52.6 million to shareholders through dividends and share repurchases. The company pays a quarterly dividend of $0.10 per share and has a dividend yield of 2.09%, as of September 4.
At the end of June 2024, 19 hedge funds in Insider Monkey’s database owned stakes in Vishay Intertechnology, Inc. (NYSE:VSH), down slightly from 21 a quarter earlier. These stakes have a total value of more than $293 million. With over 2.6 million shares, Fisher Asset Management was the company’s leading stakeholder in Q2.
