Insider Activity Update: Winston J Churchill Executes Options Exercise, Resulting In $420K At Amkor Tech

Disclosed in a recent SEC filing on August 29, Churchill, Board Member at Amkor Tech AMKR, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Churchill, Board Member at Amkor Tech, exercised stock options for 20,000 shares of AMKR stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $11.71 per share.

During Friday's morning session, Amkor Tech shares down by 0.0%, currently priced at $32.73. Considering the current price, Churchill's 20,000 shares have a total value of $420,399.

Get to Know Amkor Tech Better

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.

Key Indicators: Amkor Tech's Financial Health

Revenue Growth: Amkor Tech's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.24%. This signifies a substantial increase in the company's 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.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 14.53%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Amkor Tech's EPS reflects a decline, falling below the industry average with a current EPS of 0.27.

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

Market Valuation:

• Price to Earnings (P/E) Ratio: Amkor Tech's P/E ratio of 21.53 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.27 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): The company's EV/EBITDA ratio 6.81 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Cracking Transaction Codes

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.