TEMPE, Ariz.—Jeff Benck, President and CEO of Benchmark Electronics Inc . (NYSE:BHE), executed a significant stock transaction earlier this week. According to a recent SEC filing, Benck sold 24,000 shares of common stock on November 5 at a price of $45.9 per share, amounting to a total of approximately $1.1 million.
Following the sale, Benck retains ownership of 424,173 shares in the company. The transaction was carried out under a pre-established trading plan in compliance with Rule 10b5-1(c), which allows company insiders to set up a predetermined plan to sell stocks. This strategy is often used to avoid potential accusations of insider trading.
In other recent news, Benchmark Electronics Inc. reported robust performance in its third-quarter earnings, with revenues exceeding the midpoint of its guidance and non-GAAP earnings per share reaching the higher end of expectations. The company reported a revenue of $658 million and a non-GAAP earnings per share of $0.57. Despite a 7% year-to-date revenue decline, Benchmark managed to maintain high margins consistently.
The company's fourth-quarter guidance aligns with analysts' expectations and, looking ahead to 2025, robust margins are expected to remain, potentially leading to a vigorous second half of the year. In light of these developments, Needham maintained a Buy rating on Benchmark and raised the stock's price target to $48 from $45.
Benchmark experienced a 13% year-over-year increase in its Semiconductor Capital Equipment sector and anticipates a return to double-digit growth in its Aerospace and Defense sector in the fourth quarter. However, declines were noted in its Industrial, Medical (TASE:PMCN), and Advanced Computing and Communications sectors. The company projects its Q4 revenue to be between $640 million and $680 million, with earnings per share ranging from $0.53 to $0.59.
Analysts from various firms have noted these recent developments, expressing optimism about the company's strong performance in certain sectors. Despite facing challenges in some sectors, Benchmark has seen significant new business wins, particularly in the Semiconductor and Aerospace and Defense sectors.
InvestingPro Insights
While Jeff Benck's recent stock sale might raise eyebrows, a closer look at Benchmark Electronics' (NYSE:BHE) financial metrics and market performance reveals a more nuanced picture. According to InvestingPro data, BHE's stock has shown remarkable strength, with a 118.16% price total return over the past year and an impressive 88.56% year-to-date return. This robust performance aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, currently at 99.85% of that peak.
Despite the CEO's sale, BHE's financial health appears solid. The company boasts a market capitalization of $1.87 billion and operates with a moderate level of debt, as noted by another InvestingPro Tip. This financial stability is further underscored by the fact that BHE's liquid assets exceed its short-term obligations, suggesting a strong balance sheet position.
Investors should note that BHE's P/E ratio stands at 29.68, which may indicate a premium valuation. However, this should be considered alongside the company's growth prospects and market position. InvestingPro Tips highlight that three analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for BHE's future performance.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Benchmark Electronics, providing deeper insights into the company's financial health and market position. These additional tips can be invaluable for investors looking to make informed decisions in light of recent insider transactions.
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