Ultra Clean Hldgs President Trades $75K In Company Stock

A new SEC filing reveals that Bill Bentinck, President at Ultra Clean Hldgs UCTT, made a notable insider purchase on March 11,.

What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that Bentinck bought 3,000 shares of Ultra Clean Hldgs, amounting to a total of $75,510.

In the Wednesday's morning session, Ultra Clean Hldgs's shares are currently trading at $24.23, experiencing a up of 5.46%.

Discovering Ultra Clean Hldgs: A Closer Look

Ultra Clean Holdings Inc, through its subsidiaries, manufactures and supplies production tools, modules, and subsystems for the semiconductor capital equipment industry. The product includes precision robotic solutions, gas delivery systems, and a variety of industrial and automation production equipment products; subsystems include wafer cleaning subsystems, chemical delivery modules, top-plate assemblies, frame assemblies, and process modules. Its customer base includes firms in the semiconductor capital equipment industry, medical, energy, industrial, flat panel, and research equipment industries. It has two segments Products and Services. Its principal markets are Americas, Asia Pacific and EMEA.

Ultra Clean Hldgs: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Ultra Clean Hldgs showcased positive performance, achieving a revenue growth rate of 26.67% as of 31 December, 2024. This reflects 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.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 16.3%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Ultra Clean Hldgs's EPS reflects a decline, falling below the industry average with a current EPS of 0.36.

Debt Management: Ultra Clean Hldgs's debt-to-equity ratio surpasses industry norms, standing at 0.76. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 44.13 is lower than the industry average, implying a discounted valuation for Ultra Clean Hldgs's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.5, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 7.28, Ultra Clean Hldgs presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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Why Insider Transactions Are Key in Investment Decisions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

Understanding Crucial Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Ultra Clean Hldgs's Insider Trades.

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