Insider Selling: SUSAN OCAMPO Unloads $8.80M Of MACOM Technology Solns Stock

Making a noteworthy insider sell on May 9, SUSAN OCAMPO, Director at MACOM Technology Solns MTSI, is reported in the latest SEC filing.

What Happened: OCAMPO's decision to sell 85,403 shares of MACOM Technology Solns was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $8,803,522.

As of Friday morning, MACOM Technology Solns shares are down by 0.0%, currently priced at $101.39.

Get to Know MACOM Technology Solns Better

MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.

MACOM Technology Solns: A Financial Overview

Revenue Growth: MACOM Technology Solns's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 6.98%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 52.54%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): MACOM Technology Solns's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.21.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.46, caution is advised due to increased financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 114.03 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 11.5 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 52.26, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 MACOM Technology Solns's Insider Trades.

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