Major Decision: Gil C Tily Exercises Options, Realizing $267K At Amkor Tech

A significant insider transaction involving the exercise of company stock options was reported on May 7, by Gil C Tily, Board Member at Amkor Tech AMKR, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Tily, Board Member at Amkor Tech, a company in the Information Technology sector, just exercised stock options worth 20,000 shares of AMKR stock with an exercise price of $19.39.

Amkor Tech shares are trading, exhibiting down of 0.0% and priced at $32.78 during Wednesday's morning. This values Tily's 20,000 shares at $267,800.

All You Need to Know About Amkor Tech

Amkor Technology Inc is a provider of outsourced semiconductor packaging and test services to integrated device manufacturers, fabless semiconductor companies, and contract foundries. The firm's products are organized into two categories namely advanced products that include flip chip, fine pitch bumping, wafer-level processing, advanced SiPs, power modules, and others, and Mainstream products that includes wirebond packaging and testing. The company derives maximum revenue from the advanced products category. The company derives majority of its revenue from Foreign states.

A Deep Dive into Amkor Tech's Financials

Revenue Challenges: Amkor Tech's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -22.05%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 14.77%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Amkor Tech exhibits below-average bottom-line performance with a current EPS of 0.24.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.31.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 21.57 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.27, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 6.83, Amkor Tech presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Essential Transaction Codes Unveiled

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 Amkor Tech's Insider Trades.

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