Anuj Aggarwal Implements A Sell Strategy: Offloads $164K In Everspin Technologies Stock

On March 6, a recent SEC filing unveiled that Anuj Aggarwal, Chief Financial Officer at Everspin Technologies MRAM made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Aggarwal sold 20,000 shares of Everspin Technologies. The total transaction value is $164,200.

At Thursday morning, Everspin Technologies shares are up by 2.19%, trading at $8.4.

About Everspin Technologies

Everspin Technologies Inc is a provider of Magnetoresistive Random Access Memory (MRAM) products. Its portfolio of MRAM technologies, including Toggle MRAM and Spin-transfer Torque MRAM (STT-MRAM), delivers superior performance, persistence, and reliability in non-volatile memories that transform how mission-critical data is protected against power loss. The company derives revenue from the sale of MRAM-based products in discrete unit form, licenses of and royalties on MRAM and magnetic sensor technology, the sale of backend foundry services, and design services to third parties. It recognizes revenue in three primary geographic regions; North America; Europe, the Middle East, and Africa (EMEA); and Asia-Pacific (APAC).

Understanding the Numbers: Everspin Technologies's Finances

Revenue Growth: Everspin Technologies's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 6.48%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Profitability Metrics:

• Gross Margin: With a low gross margin of 58.08%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Everspin Technologies's EPS is below the industry average. The company faced challenges with a current EPS of 0.1. This suggests a potential decline in earnings.

Debt Management: Everspin Technologies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.1, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Everspin Technologies's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 19.57.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.75 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 13.89, Everspin Technologies presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Exploring the Significance of Insider Trading

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Everspin Technologies's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.