Guillaume Marie Jean Rutten, the President and CEO of Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), has recently sold a significant number of shares in the company. On June 17, 2024, Rutten sold 25,000 shares at an average price of $34.82, totaling approximately $870,500. This sale was conducted under a Rule 10b5-1 trading plan, which was adopted on November 8, 2023.
The transactions occurred in multiple parts, with prices ranging from $34.59 to $35.00 per share. After the sale, Rutten's direct ownership in the company stands at 94,476 shares of common stock.
In addition to the sale, Rutten also acquired 15,000 shares of Amkor Technology 's common stock through the exercise of options on the same date, at a price of $14.17 per share, amounting to a total of $212,550. Following this transaction, Rutten's total direct holdings increased to 119,476 shares.
The options exercised by Rutten were part of an employee stock option plan, where the right to buy was granted at a conversion or exercise price of $14.17. These stock options were initially granted on July 30, 2020, and vested in equal quarterly installments over three years, reaching full vesting on the third anniversary of the grant date.
Investors and the market keep a close watch on insider transactions such as these, as they can provide insights into executives' perspectives on the company's current valuation and future prospects. Amkor Technology, a leading provider in the semiconductors and related devices industry, has its business and mailing address in Tempe, Arizona, and is incorporated in Delaware.
In other recent news, semiconductor service provider Amkor Technology reported strong first-quarter results with earnings surpassing consensus estimates. The company's second-quarter guidance was also higher than anticipated, signaling the launch of a new 2.5D artificial intelligence (AI) packaging program. B.Riley and DA Davidson both maintained a Buy rating on Amkor Technology, with B.Riley raising the stock price target to $45 from $43 and DA Davidson increasing the price target from $35.00 to $40.00.
These developments reflect a robust outlook for the company, with a significant growth expected in the second half of the year, driven by new AI and wearables programs. Despite a slight decline in automotive sales, Amkor remains optimistic about growth in this segment, with the weakest point of the cycle now behind them. The compute sector surprised with higher results in the first quarter, bolstered by better memory sales and initial shipments for the 2.5D AI program.
Amkor reported Q1 revenue of $1.37 billion and earnings per share (EPS) of $0.24. The company anticipates a 6% sequential growth in Q2 revenue to $1.45 billion. In addition, Amkor plans to triple its 2.5D technology capacity and launch fan-out and RDL technologies into high volume production by early 2025. These are the recent developments in the company's performance and strategic direction.
InvestingPro Insights
Following the news of Amkor Technology, Inc.'s (NASDAQ:AMKR) President and CEO Guillaume Marie Jean Rutten's recent stock transactions, investors are taking a keen look at the company's performance metrics and market position. According to InvestingPro, Amkor has shown a strong return over the last year, with a 1 Year Price Total Return of 51.17%. This impressive performance is a testament to the company's resilience and strategic positioning in the Semiconductors & Semiconductor Equipment industry, where it is recognized as a prominent player.
From a financial standpoint, Amkor's market capitalization currently stands at $9.73 billion USD, illustrating the scale of its operations within the sector. The company's Price/Earnings (P/E) Ratio is at 25.8, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at 25.96, reflecting investor sentiment and expectations of future earnings. Additionally, Amkor's Price to Book ratio for the same period is 2.43, which can offer insights into the market's valuation of the company relative to its book value.
InvestingPro Tips highlight that Amkor has raised its dividend for 4 consecutive years, signaling a commitment to returning value to shareholders. Moreover, 4 analysts have recently revised their earnings estimates upwards for the upcoming period, suggesting a positive outlook on the company's financial performance. For investors looking to delve deeper into Amkor's prospects and receive more curated financial insights, there are 17 additional InvestingPro Tips available, which can be accessed by subscribing to InvestingPro. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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