Sell Alert: SUSAN OCAMPO Cashes Out $71.20M In MACOM Technology Solns Stock

Making a noteworthy insider sell on November 20, SUSAN OCAMPO, Board Member at MACOM Technology Solns MTSI, is reported in the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that OCAMPO sold 601,789 shares of MACOM Technology Solns. The total transaction amounted to $71,203,625.

Tracking the Thursday's morning session, MACOM Technology Solns shares are trading at $129.9, showing a up of 1.83%.

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, Japan, Singapore, South Korea, and other countries across the world.

Key Indicators: MACOM Technology Solns's Financial Health

Revenue Growth: MACOM Technology Solns's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 33.47%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 54.73%, 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 0.41.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.43, caution is advised due to increased financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 122.65 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 12.86 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 55.77 positions the company as being more valued compared to industry benchmarks.

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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Unmasking the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

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

Breaking Down the Significance of 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.

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