TTM Technologies Insider Trades Send A Signal

Daniel J Weber, EVP at TTM Technologies TTMI, disclosed an insider sell on August 20, according to a recent SEC filing.

What Happened: Weber's decision to sell 13,000 shares of TTM Technologies was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $247,019.

The latest update on Tuesday morning shows TTM Technologies shares down by 0.36%, trading at $19.4.

Discovering TTM Technologies: A Closer Look

TTM Technologies Inc manufactures technology solutions, including mission systems, radio frequency (RF) components/RF microwave/microelectronic assemblies, quick-turn and technologically printed circuit boards (PCB). The company is based in the United States and derives roughly half of its revenue domestically. The company organizes itself into two segments: printed circuit boards and RF&S Components. The printed circuit boards segment, which contributes the majority of revenue, offers a range of printed circuit boards as well as layout design and simulation, and testing services. TTM Technologies' products are used in manufacturing, networking, telecommunications, computing, aerospace, and medical fields.

Key Indicators: TTM Technologies's Financial Health

Revenue Growth: TTM Technologies displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.73%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 19.37%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, TTM Technologies exhibits below-average bottom-line performance with a current EPS of 0.26.

Debt Management: TTM Technologies's debt-to-equity ratio surpasses industry norms, standing at 0.66. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 121.69, TTM Technologies's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.86, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 10.33, TTM Technologies presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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The Impact of Insider Transactions on Investments

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 TTM Technologies's Insider Trades.

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