SUSAN OCAMPO Takes Money Off The Table, Sells $37.92M In MACOM Technology Solns Stock

SUSAN OCAMPO, Director at MACOM Technology Solns MTSI, executed a substantial insider sell on February 9, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, OCAMPO sold 465,993 shares of MACOM Technology Solns. The total transaction value is $37,916,733.

Monitoring the market, MACOM Technology Solns's shares down by 0.0% at $82.45 during Friday's 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, Taiwan, and other countries across the world.

Financial Milestones: MACOM Technology Solns's Journey

Revenue Challenges: MACOM Technology Solns's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -15.59%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 57.61%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, MACOM Technology Solns exhibits below-average bottom-line performance with a current EPS of 0.18.

Debt Management: MACOM Technology Solns's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.51, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 79.26 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: The current P/S ratio of 9.45 is above industry norms, reflecting an elevated valuation for MACOM Technology Solns's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 38.31 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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Understanding the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.