Board Member Of MACOM Technology Solns Makes $20.25M Sale

Making a noteworthy insider sell on May 22, SUSAN OCAMPO, Board Member at MACOM Technology Solns MTSI, is reported in the latest SEC filing.

What Happened: OCAMPO's recent move involves selling 196,908 shares of MACOM Technology Solns. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $20,245,495.

The latest update on Thursday morning shows MACOM Technology Solns shares up by 1.9%, trading at $103.08.

Discovering MACOM Technology Solns: A Closer Look

MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.

MACOM Technology Solns's Financial Performance

Revenue Growth: MACOM Technology Solns's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 6.98%. This signifies a substantial increase in the company's 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.

Evaluating Earnings Performance:

• Gross Margin: The company maintains a high gross margin of 52.54%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): MACOM Technology Solns's EPS is below the industry average. The company faced challenges with a current EPS of 0.21. This suggests a potential decline in earnings.

Debt Management: MACOM Technology Solns's debt-to-equity ratio stands notably higher than the industry average, reaching 0.46. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: MACOM Technology Solns's current Price to Earnings (P/E) ratio of 113.66 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 11.46 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 52.09, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

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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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

When it comes to 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 indicates 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 MACOM Technology Solns's Insider Trades.

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