SANTA CLARA, CA—In a recent move, Torsten Kreindl, a director at SITIME Corp (NASDAQ:SITM), divested a significant portion of his holdings in the semiconductor company. According to a filing with the Securities and Exchange Commission, Kreindl sold 6,000 shares of SITIME common stock on November 8, 2024. The shares were sold at a weighted average price of $220.86, with transactions occurring in a price range from $220.00 to $227.07 per share.
This transaction resulted in a total sale value of approximately $1.33 million. Following the sale, Kreindl retains ownership of 13,511 shares, which include 2,115 shares of common stock issuable from previously reported restricted stock units that have not yet vested.
Investors will be watching SITIME closely as the company continues to navigate the competitive semiconductor industry.
In other recent news, SiTime Corporation (NASDAQ:SITM) reported a significant year-over-year revenue increase of 62% in its third quarter of 2024, reaching $57.7 million. The company's net income represented 17% of this revenue. During the earnings call, CEO Rajesh Vashist and CFO Beth Howe highlighted expectations for continued growth in the Communications Enterprise and Data Center segment and the initiation of volume shipments in the electric vehicle sector in 2025. The company also projected Q4 2024 revenue between $63 million and $65 million, with non-GAAP gross margins around 58% to 58.5%. Non-GAAP EPS for Q4 2024 is expected between $0.39 and $0.45 per share. SiTime anticipates its revenue growth will significantly outpace operating expenses due to strategic investments. However, a typical seasonal revenue decline of 20% from Q4 to Q1 is expected. Despite this, SiTime remains optimistic about its growth trajectory and its expansion in high-growth markets.
InvestingPro Insights
The recent insider sale by Torsten Kreindl at SITIME Corp (NASDAQ:SITM) comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, SITIME has delivered a strong 93.31% total return over the past year, reflecting investor confidence in the company's prospects. This impressive gain aligns with the company's 59.04% price return over the last three months, indicating sustained momentum in the stock's performance.
Despite the positive stock performance, it's worth noting that SITIME is not currently profitable, with a negative operating income margin of -60.44% for the last twelve months as of Q3 2023. However, InvestingPro Tips highlight that analysts anticipate sales growth in the current year and predict the company will turn profitable this year. This optimism is further supported by the fact that 6 analysts have revised their earnings upwards for the upcoming period.
SITIME's financial health appears solid, with InvestingPro Tips indicating that the company holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This strong financial position could provide SITIME with the flexibility to invest in growth opportunities within the competitive semiconductor industry.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for SITIME, providing a deeper understanding of the company's financial health and market position.
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