Atmel Corporation (ATML): Today's Featured Electronics Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Atmel Corporation ( ATML) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 1.7%. By the end of trading, Atmel Corporation fell $0.08 (-1.3%) to $6.20 on heavy volume. Throughout the day, 10,219,947 shares of Atmel Corporation exchanged hands as compared to its average daily volume of 5,570,300 shares. The stock ranged in price between $6.03-$6.48 after having opened the day at $6.45 as compared to the previous trading day's close of $6.28. Other companies within the Electronics industry that declined today were: AU Optronics Corporation ( AUO), down 9.2%, IEC Electronics Corporation ( IEC), down 8.8%, Sutron Corporation ( STRN), down 5.5% and Netlist ( NLST), down 5.5%.
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Atmel Corporation designs, develops, manufactures, and sells semiconductor integrated circuit (IC) products. Atmel Corporation has a market cap of $2.8 billion and is part of the technology sector. The company has a P/E ratio of 92.4, above the S&P 500 P/E ratio of 17.7. Shares are down 4.1% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Atmel Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Atmel Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, SunPower Corporation ( SPWR), down 17.6%, Mattson Technology ( MTSN), down 16.7%, Inphi ( IPHI), down 13.5% and Canadian Solar ( CSIQ), down 12.4% , were all gainers within the electronics industry with Cree ( CREE) being today's featured electronics industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).

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