Atmel is working with investment bank Qatalyst Partners for a potential sale, according to Reuters. There is reportedly no guarantee the company will decide to sell itself, however, according to the news service.
Atmel designs and manufactures microcontrollers for use in RF devices, flash memory, touch sensors and controllers, and application-specific products. The company has a market capitalization of about $4 billion.
More than 9.4 million shares of Atmel were traded during regular trading hours Monday, well above the company's average trading volume of about 5.2 million shares a day.
Insight from TheStreet's Research Team:
Atmel is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:
Atmel (ATML; 1,000 shares; 5.09%, Inflection Point; $10 price target): The company makes microcontrollers used in electronics. The shares added 6% to recent gains this week on speculation of continued consolidation in the semiconductor sector. We believe that management can continue to expand margins in the coming quarters. In the meantime, we'll qualify for the next quarterly dividend of $0.06 per share (1.7% yield) at the close of trading on June 10.
TheStreet Ratings team rates ATMEL CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: