Edward K. Zinser, a director at Universal Electronics Inc. (NASDAQ:UEIC), recently sold 2,500 shares of the company's common stock. The shares were sold at an average price of $10.68 each, totaling approximately $26,700. Following this transaction, Zinser holds 38,062 shares directly.
Additionally, Zinser maintains 3,750 restricted stock units, each representing a contingent right to receive one share of UEI common stock, according to the vesting schedule of each grant.
In other recent news, Universal Electronics has reported steady Q3 2024 financial results, with net sales of $102 million and earnings per share (EPS) of $0.10. B.Riley, an independent firm, upgraded Universal Electronics stock rating from Neutral to Buy, reflecting a positive outlook on the company's recent developments. Among these developments, Universal Electronics is in the final testing phase of the TIDE Dial smart thermostat, has secured design wins from Hunter Douglas and Somfy, and introduced a Zigbee smart thermostat for a major North American security brand.
The company has also entered into a national distribution agreement for its professional security sensors, part of Universal Electronics' strategy to diversify its product offerings and expand its market reach. Strengthening relationships with entertainment customers and increasing its share with multiple telecom providers in North America and Europe, Universal Electronics has also achieved a design win for its innovative battery-free remote control.
Optimizing its manufacturing footprint, Universal Electronics has positively impacted its gross margin in Q3. The company's CEO, Paul Arling, expressed optimism for continued growth, particularly in the Connected Home and Home Entertainment sectors. Universal Electronics projects Q4 2024 sales to range from $99 million to $109 million, with EPS between $0.10 and $0.20, driven by new projects in the connected home channel.
InvestingPro Insights
Universal Electronics Inc. (NASDAQ:UEIC) has recently experienced significant market momentum, with InvestingPro data showing a 26.69% return over the last week and a 29.77% return over the last month. This upward trend aligns with the timing of director Edward K. Zinser's recent stock sale, potentially indicating a favorable market perception of the company's near-term prospects.
Despite the recent positive stock performance, InvestingPro Tips suggest that analysts anticipate a sales decline for UEIC in the current year. This forecast, coupled with the expectation that the company may not be profitable this year, provides context for Zinser's decision to sell a portion of his holdings.
It's worth noting that UEIC operates with a moderate level of debt and its liquid assets exceed short-term obligations, which could provide some financial stability during a potentially challenging period. The company's price-to-book ratio of 0.87 suggests that the stock may be undervalued relative to its book value, potentially offering an opportunity for investors despite the current profitability concerns.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for UEIC, providing a deeper understanding of the company's financial health and market position.
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