Sell Alert: SUSAN OCAMPO Cashes Out $26.41M In MACOM Technology Solns Stock

A substantial insider sell was reported on August 20, by SUSAN OCAMPO, Board Member at MACOM Technology Solns MTSI, based on the recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that OCAMPO sold 248,633 shares of MACOM Technology Solns. The total transaction amounted to $26,411,424.

Tracking the Wednesday's morning session, MACOM Technology Solns shares are trading at $105.58, showing a down of 0.0%.

Unveiling the Story Behind 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: A Financial Overview

Revenue Growth: Over the 3 months period, MACOM Technology Solns showcased positive performance, achieving a revenue growth rate of 28.25% as of 30 June, 2024. This reflects a substantial 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.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 53.24%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): MACOM Technology Solns's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.28.

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.

Financial Valuation Breakdown:

• 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 106.65.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 11.33 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 51.49, 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 Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Transaction Codes Worth Your Attention

When analyzing 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 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.