In a recent transaction, Xing Xiao, a director at ACM Research, Inc. (NASDAQ:ACMR), sold a significant number of shares in the company. The sale totaled over $23 million, with the price per share ranging from $21.13 to $26.01.
The transactions were carried out in accordance with a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading. The sales occurred over several days, with varying prices reflecting the market's fluctuations.
On October 4, shares were sold at prices between $20.71 and $21.705, and on the same day, another set of shares were sold at prices ranging from $21.71 to $22.10. The trend of selling continued on October 7, with shares going for $23.05 to $23.91 in one instance and $25.01 to $26.005 in another. Lastly, on October 8, shares were sold at prices from $20.53 to $21.51.
Following these transactions, the director still retains a substantial amount of ACM Research stock, indicating a continued vested interest in the company's performance. These sales are part of normal stock trading practices and are disclosed to the public to maintain transparency between company executives and shareholders.
Investors often monitor such filings for insights into executive sentiment on the company's future performance, although these transactions do not necessarily indicate a change in company fundamentals. It is also important to note that the shares mentioned are owned by Shanghai Science and Technology Venture Capital Co., Ltd. (SSTVC), and Xing Xiao has disclaimed beneficial ownership except to the extent of his pecuniary interest.
ACM Research, Inc., headquartered in Fremont, California, specializes in wafer processing solutions for semiconductor manufacturing, enabling the production of advanced integrated circuits.
In other recent news, ACM Research, a provider of wafer processing solutions, has made significant strides in its financial and operational performance. The company recently reported a 40% year-over-year increase in revenue to $202.5 million in Q2 2024, driven by robust tool shipments and ongoing customer demand. Shipments also grew by 32% to $203 million, and the company has raised its 2024 revenue outlook to between $695 million and $735 million.
In addition, ACM Research has secured orders for four advanced packaging tools, two from a U.S.-based customer and two from a domestic research center. These tools, expected to be delivered in the first half of 2025, will support various advanced packaging processes, showcasing the company's commitment to innovation and its growing U.S. market presence.
Furthermore, Roth/MKM has maintained a Buy rating on the company's stock, despite reducing its price target from $40 to $30. This adjustment is seen as a broader reassessment of market valuations, but does not diminish the firm's confidence in ACM Research's growth prospects. These are all recent developments that underscore the company's strong financial performance and ambitious growth trajectory.
InvestingPro Insights
To provide additional context to the recent insider selling at ACM Research, Inc. (NASDAQ:ACMR), let's examine some key financial metrics and insights from InvestingPro.
ACM Research has demonstrated strong financial performance, with revenue growth of 50.42% over the last twelve months as of Q2 2024. This impressive growth is complemented by a healthy gross profit margin of 49.53% for the same period. The company's ability to generate profits is further underscored by its operating income margin of 17.21%, indicating efficient management of operational costs.
InvestingPro Tips highlight that ACMR is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.72. This suggests that the stock may be undervalued considering its growth prospects. Additionally, the company holds more cash than debt on its balance sheet, which provides financial flexibility and reduces risk.
Despite the recent insider selling, ACMR has shown a significant return over the last week, with a 14.1% price increase. This short-term performance is part of a broader trend, as the stock has delivered a strong return of 39.78% over the past month. However, it's worth noting that the stock price movements are quite volatile, which aligns with the insider's decision to sell shares at various price points.
Analysts remain optimistic about ACMR's prospects, predicting that the company will be profitable this year. This outlook is supported by the company's profitability over the last twelve months, with a basic EPS of $1.39.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for ACMR, providing a deeper understanding of the company's financial health and market position.
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