Insider Decision: SUSAN OCAMPO Offloads $32.26M Worth Of MACOM Technology Solns Stock

Revealing a significant insider sell on November 27, SUSAN OCAMPO, Director at MACOM Technology Solns MTSI, as per the latest SEC filing.

What Happened: After conducting a thorough analysis, OCAMPO sold 240,192 shares of MACOM Technology Solns. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $32,260,128.

MACOM Technology Solns shares are trading up 1.11% at $136.14 at the time of this writing on Wednesday morning.

Get to Know MACOM Technology Solns Better

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, Japan, Singapore, South Korea, and other countries across the world.

Financial Insights: MACOM Technology Solns

Revenue Growth: MACOM Technology Solns's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 33.47%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 54.73%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): MACOM Technology Solns's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.41.

Debt Management: MACOM Technology Solns's debt-to-equity ratio surpasses industry norms, standing at 0.43. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 129.46, MACOM Technology Solns's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 13.58 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 58.9 reflects market recognition of MACOM Technology Solns's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

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.

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.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 MACOM Technology Solns's Insider Trades.

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