Chief Accounting Officer At Ultra Clean Hldgs Buys $96K of Stock

Brian E Harding, Chief Accounting Officer at Ultra Clean Hldgs UCTT, disclosed an insider purchase on March 11, based on a new SEC filing.

What Happened: Harding's recent purchase of 4,000 shares of Ultra Clean Hldgs, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, reflects confidence in the company's potential. The total transaction value is $96,000.

Monitoring the market, Ultra Clean Hldgs's shares up by 5.46% at $24.23 during Wednesday's morning.

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's Financial Performance

Revenue Growth: Ultra Clean Hldgs's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 26.67%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Profitability Metrics: Unlocking Value

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

• Earnings per Share (EPS): Ultra Clean Hldgs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.36.

Debt Management: Ultra Clean Hldgs's debt-to-equity ratio stands notably higher than the industry average, reaching 0.76. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

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: The P/S ratio of 0.5 is lower than the industry average, implying a discounted valuation for Ultra Clean Hldgs's stock in relation to 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: 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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Unmasking the Significance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Exploring Key Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Ultra Clean Hldgs's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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