FREMONT, CA - In a recent transaction, Mark McKechnie, an executive at ACM Research, Inc. (NASDAQ:ACMR), sold 16,516 shares of the company's Class A Common Stock, according to a new SEC filing. The shares were sold at an average price of $22.0 each, totaling over $363,352 in value.
The sale took place on October 4, 2024, and was carried out under a Rule 10b5-1 trading plan, which McKechnie had adopted on March 7, 2024. These plans allow company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information, to avoid any accusations of insider trading.
On the same day, McKechnie also acquired 16,516 shares of ACM Research's Class A Common Stock at a price of $5.6 per share, amounting to a total of $92,489. This transaction was related to the exercise of options that were fully vested and exercisable, as noted in the footnotes of the SEC filing.
Following the sale, McKechnie's direct ownership in the company was reduced to 900 shares of Class A Common Stock. However, the executive continues to hold 45,000 stock options, which remain exercisable until April 22, 2029.
ACM Research, Inc. specializes in developing and manufacturing advanced semiconductor equipment, and is headquartered in Fremont, California. The company's stock is traded on the NASDAQ under the ticker symbol ACMR.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's future prospects. With the recent sale, stakeholders may be interested in following ACM Research's performance and any potential impact this insider activity may have on the stock's movement.
In other recent news, ACM Research, a semiconductor company, has experienced significant developments. The company has reported a substantial increase in revenue, with a 40% year-over-year surge to $202.5 million in the second quarter of 2024. Shipments also rose by 32% to $203 million, leading to an upward adjustment of the 2024 revenue outlook to between $695 million and $735 million.
In a strategic move, ACM Research secured orders for four advanced wafer-level packaging tools, two from a U.S.-based customer and two from a domestic research center. The tools, expected to be delivered in the first half of 2025, aim to support various advanced packaging processes and demonstrate ACM's technological capabilities.
Analysts at Roth/MKM, despite reducing their price target for ACM Research to $30 from $40, maintain a Buy rating on the stock. This adjustment reflects a broader reassessment of market valuations, yet the firm's confidence in ACM Research's growth prospects remains unshaken.
The company's ambition to expand beyond its traditional Chinese customer base is evident in its penetration of new markets and the introduction of new products. These recent developments underscore ACM Research's strong financial performance and ambitious growth trajectory, with a long-term revenue target set at $3 billion.
InvestingPro Insights
To provide additional context to Mark McKechnie's recent stock transactions at ACM Research, Inc. (NASDAQ:ACMR), let's examine some key financial metrics and insights from InvestingPro.
ACM Research has demonstrated strong financial performance, with revenue growth of 50.42% over the last twelve months as of Q2 2024, reaching $693.56 million. This robust growth is complemented by a healthy gross profit margin of 49.53% and an operating income margin of 17.21% for the same period.
The company's stock has shown significant momentum recently, with a 50.77% price return over the past month and a 23.99% return in just the last week. This recent surge aligns with an InvestingPro Tip indicating that ACMR has had a "Strong return over the last month."
Another InvestingPro Tip suggests that ACM Research is "Trading at a low P/E ratio relative to near-term earnings growth." This is supported by the company's current P/E ratio of 15.97 and a PEG ratio of 0.72, which may indicate that the stock is undervalued relative to its growth prospects.
It's worth noting that InvestingPro offers 12 additional tips for ACMR, providing a more comprehensive analysis for investors interested in delving deeper into the company's financial health and market position.
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