Guillaume Marie Jean Rutten, President and CEO of Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), recently executed a sale of 10,000 shares of the company's common stock. The shares were sold at a weighted average price of $31.51, with transaction prices ranging from $31.26 to $31.70, resulting in a total transaction value of $315,100. This sale was conducted under a Rule 10b5-1 trading plan that Rutten adopted on May 28, 2024. Following this transaction, Rutten holds 204,971 shares of Amkor Technology .
In other recent news, Amkor Technology has been highlighted by KeyBanc Capital Markets for its leadership in the outsourced assembly and test (OSAT) sector, which is expected to drive future growth. The firm anticipates high single to low double-digit growth for the company in the coming years, leading to a significant increase in earnings per share. Amkor Technology's second-quarter performance reported robust revenues of $1.46 billion and earnings per share at $0.27, marking a 7% sequential increase in revenue. However, third-quarter guidance fell slightly below analyst expectations due to a delay in the 2.5D technology ramp-up and a slower recovery in the automotive and industrial sectors than initially anticipated.
Amkor Technology also announced a change in its leadership, with Susan Y. Kim taking over as Chairman of the Board following the retirement of the current Executive Chairman, James Kim. This transition is part of Amkor's strategic move to maintain its global leadership in advanced packaging technologies. In response to these developments, Needham raised its price target for Amkor Technology to $45 from the previous target of $40, while maintaining a Buy rating on the stock. Despite the challenges, Amkor Technology remains optimistic about its full-year revenue from 2.5D technology, projecting it to quadruple year-over-year, and plans to expand its 2.5D capacity in 2025. Looking ahead, Amkor anticipates a third-quarter revenue of $1.835 billion, influenced by new product launches and strong demand in various segments. Despite flat expectations for the automotive and industrial markets, there is strong demand projected for high-performance computing and ARM-based PCs.
InvestingPro Insights
As we delve deeper into Amkor Technology's recent insider activity, it's worth considering some additional financial metrics and insights from InvestingPro that may provide context to Guillaume Marie Jean Rutten's recent stock sale.
According to InvestingPro data, Amkor Technology currently has a market capitalization of $7.62 billion. The company's P/E ratio stands at 20.37, suggesting that investors are willing to pay a premium for the company's earnings. This valuation metric aligns with the company's position as a prominent player in the Semiconductors & Semiconductor Equipment industry, as noted by one of the InvestingPro Tips.
Interestingly, despite the recent insider sale, Amkor Technology has demonstrated a strong commitment to shareholder returns. An InvestingPro Tip highlights that the company has raised its dividend for 4 consecutive years, with a current dividend yield of 1.03%. This consistent dividend growth could be an attractive feature for income-focused investors.
However, it's important to note that the company's stock price has experienced significant volatility recently. InvestingPro data shows that Amkor's stock price has fallen by 25.88% over the last three months. This decline might be related to another InvestingPro Tip, which indicates that 5 analysts have revised their earnings downwards for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Amkor Technology, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.