Chief Financial Officer At Everspin Technologies Sells $131K Of Stock

Making a noteworthy insider sell on December 13, Anuj Aggarwal, Chief Financial Officer at Everspin Technologies MRAM, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Aggarwal executed a sale of 15,000 shares of Everspin Technologies with a total value of $131,550.

At Thursday morning, Everspin Technologies shares are up by 1.07%, trading at $8.49.

All You Need to Know About Everspin Technologies

Everspin Technologies Inc is a provider of Magnetoresistive Random Access Memory (MRAM) products. Its portfolio of MRAM technologies, including Toggle MRAM and Spin-transfer Torque MRAM (STT-MRAM), delivers superior performance, persistence, and reliability in non-volatile memories that transform how mission-critical data is protected against power loss. The company derives revenue from the sale of MRAM-based products in discrete unit form, licenses of and royalties on MRAM and magnetic sensor technology, the sale of backend foundry services, and design services to third parties. It recognizes revenue in three primary geographic regions; North America; Europe, the Middle East, and Africa (EMEA); and Asia-Pacific (APAC).

Financial Milestones: Everspin Technologies's Journey

Positive Revenue Trend: Examining Everspin Technologies's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.04% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 60.24%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Everspin Technologies's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.12.

Debt Management: Everspin Technologies's debt-to-equity ratio is below the industry average. With a ratio of 0.12, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.06, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.85 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 16.41, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Everspin Technologies's Insider Trades.

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