MACOM Technology Solns Director Trades Company's Stock

SUSAN OCAMPO, Director at MACOM Technology Solns MTSI, executed a substantial insider sell on May 15, according to an SEC filing.

What Happened: OCAMPO's decision to sell 147,639 shares of MACOM Technology Solns was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $15,223,222.

MACOM Technology Solns shares are trading down 0.48% at $102.87 at the time of this writing on Thursday morning.

All You Need to Know About MACOM Technology Solns

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.

Understanding the Numbers: MACOM Technology Solns's Finances

Positive Revenue Trend: Examining MACOM Technology Solns's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.98% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Evaluating Earnings Performance:

• 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 is below the industry average. The company faced challenges with a current EPS of 0.21. This suggests a potential decline in earnings.

Debt Management: MACOM Technology Solns's debt-to-equity ratio surpasses industry norms, standing at 0.46. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: MACOM Technology Solns's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 116.15.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 11.71 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): MACOM Technology Solns's EV/EBITDA ratio stands at 53.23, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Activity Matters in Finance

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Unlocking the Meaning of Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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.