Insider Decision: SUSAN OCAMPO Offloads $32.52M Worth Of MACOM Technology Solns Stock

Revealing a significant insider sell on August 19, SUSAN OCAMPO, Director at MACOM Technology Solns MTSI, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that OCAMPO sold 305,395 shares of MACOM Technology Solns. The total transaction amounted to $32,519,061.

In the Tuesday's morning session, MACOM Technology Solns's shares are currently trading at $106.21, experiencing a down of 0.0%.

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.

A Deep Dive into MACOM Technology Solns's Financials

Revenue Growth: MACOM Technology Solns displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 28.25%. 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.

Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 53.24%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): MACOM Technology Solns's EPS reflects a decline, falling below the industry average with a current EPS of 0.28.

Debt Management: With a high debt-to-equity ratio of 0.44, MACOM Technology Solns faces challenges in effectively managing its debt levels, indicating potential financial strain.

Exploring Valuation Metrics Landscape:

• 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 107.28.

• Price to Sales (P/S) Ratio: The current P/S ratio of 11.4 is above industry norms, reflecting an elevated valuation for MACOM Technology Solns's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 51.79 reflects market recognition of MACOM Technology Solns's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Exploring Key Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 MACOM Technology Solns's Insider Trades.

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