SUSAN OCAMPO executes sell order: Sells $11.96 million worth of MACOM Technology Solns shares – MACOM Technology Solns (NASDAQ:MTSI)

Susanne OcampoDirector at MACOM Technology Solutions MTSIreported an insider sale on August 15, according to a new SEC filing.

What happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday showed that OCAMPO sold 115,743 shares of MACOM Technology SolutionsThe total transaction amounted to $11,955,362.

The latest update on Friday morning shows MACOM Technology Solutions Shares fell 0.37% to trade at $105.61.

About MACOM Technology Solutions

MACOM Technology Solutions Holdings Inc. is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for the industrial, medical, scientific and test and measurement markets. The company’s product portfolio includes integrated circuits, multichip modules, power arrays and transistors, diodes, amplifiers, switches and limiters, passive and active components and complete subsystems. Approximately one-third of the company’s sales are generated in the United States, with the remainder coming from China, Taiwan and other countries worldwide.

Financial Milestones: The Journey of MACOM Technology Solutions

Sales growth: MACOM Technology Solns’ remarkable performance in 3 months is evident. As of June 30, 2024, the company achieved an impressive revenue growth rate of 28.25%This represents a significant increase in the company’s sales. In comparison to the industry, the company stands out with a growth rate that is above the average of its competitors in the IT sector.

Explore profitability:

• Gross margin: The company boasts a remarkable gross margin of 53.24%indicating greater cost efficiency and profitability compared to competitors in the industry.

• Earnings per share (EPS): MACOM Technology Solns earnings per share are below the industry average. The company has been facing challenges with current earnings per share of 0.28This indicates a possible decline in profits.

Debt management: The debt ratio of MACOM Technology Solns is significantly above the industry average and reaches 0.44This indicates a greater dependence on borrowed funds and raises concerns about indebtedness.

Navigating the market valuation:

• Price-earnings ratio (P/E): The current price-earnings ratio (P/E) of MACOM Technology Solutions is 107.03 is above the industry average, suggesting that the stock could be overvalued depending on market sentiment.

• Price-to-sales ratio (P/S): The current P/S ratio of 11.37 is above the industry average and reflects an increased valuation of MACOM Technology Solutions’ share as well as a potential overvaluation due to sales development.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): A high EV/EBITDA ratio of 51.67 reflects the market recognition of MACOM Technology Solutions’ value and positions the company as higher valued compared to its peers in the industry.

Market capitalization perspectives: The company’s market capitalization is below the industry average, indicating a relatively small size compared to peers. This positioning can be influenced by factors such as perceived growth potential or operating size.

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Unmasking the importance of insider transactions

Investors should consider insider transactions as part of a complex analysis and not rely on them exclusively in making their decisions.

In a legal context, the term “insider” refers to any officer, director, or beneficial owner who owns more than ten percent of a company’s stock, as defined in Section 12 of the Securities Exchange Act of 1934. This includes senior executives and major hedge funds. These insiders are required to report their transactions on a Form 4, which must be filed within two business days of the transaction.

A new purchase by a company insider is a sign of optimism and signals that he expects the stock to rise.

Although insider selling does not always indicate a pessimistic mood, it can be caused by various factors.

Important transaction codes in detail

When reviewing transactions, investors often focus on those that occur in the open market and are described in detail in Table I of Form 4. P in Box 3 indicates a purchase, while S means a sale. Transaction code C refers to the conversion of an option and the transaction code A means a grant, assignment or other acquisition of securities of the company.

View the full list of MACOM Technology Solutions insider trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.