Insider Decision: SUSAN OCAMPO Offloads $12.28M Worth Of MACOM Technology Solns Stock

SUSAN OCAMPO, Director at MACOM Technology Solns MTSI, reported an insider sell on May 29, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that OCAMPO executed a sale of 119,118 shares of MACOM Technology Solns with a total value of $12,276,949.

MACOM Technology Solns shares are trading down 0.0% at $101.97 at the time of this writing on Thursday morning.

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.

MACOM Technology Solns's Financial Performance

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 its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 52.54%, the company demonstrates effective cost control and strong profitability relative 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: With a high debt-to-equity ratio of 0.46, MACOM Technology Solns faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 114.57 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 11.55 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 52.51, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.