Christopher S Cook's Recent Buy: Acquires $103K In Ultra Clean Hldgs Stock

Christopher S Cook, President at Ultra Clean Hldgs UCTT, disclosed an insider purchase on March 11, based on a new SEC filing.

What Happened: Cook demonstrated confidence in Ultra Clean Hldgs by purchasing 4,100 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $103,709.

The latest market snapshot at Wednesday morning reveals Ultra Clean Hldgs shares up by 5.46%, trading at $24.23.

Get to Know Ultra Clean Hldgs Better

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: Delving into Financials

Revenue Growth: Ultra Clean Hldgs's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 26.67%. This signifies 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.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 16.3%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Ultra Clean Hldgs's EPS is below the industry average. The company faced challenges with a current EPS of 0.36. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.76, caution is advised due to increased financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Ultra Clean Hldgs's P/E ratio of 44.13 is below the industry average, suggesting the stock may be undervalued.

• 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 an EV/EBITDA ratio lower than industry benchmarks at 7.28, Ultra Clean Hldgs presents an attractive value opportunity.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced 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 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.