In a recent filing with the Securities and Exchange Commission, it was reported that an insider of ACM Research, Inc. (NASDAQ:ACMR), a company specializing in wafer processing solutions for semiconductor and advanced wafer-level packaging applications, has sold a significant amount of company stock. The transactions, which took place between October 4 and October 8, involved the sale of ACM Research shares at prices ranging from $20.94 to $25.36 per share, resulting in a total sale value of over $23 million.
The insider, identified as Shanghai Pudong Science & Technology Investment Group Co., Ltd., along with its possible member of the 10% group, Shanghai Science & Technology Venture Capital (Group) Co., Ltd., executed multiple transactions over the course of several days. The sales began on October 4, with 570,735 shares sold at an average price of $21.52, and continued with sales of 129,265 shares at an average of $20.94. The insider further sold 100,514 shares at $25.36, 1,481 shares at $25.02, and 173,005 shares at $23.32, with the final sale of 90,396 shares at $21.13 on October 8.
Following these transactions, the insider's remaining ownership in ACM Research stands at 2,338,510 shares. It should be noted that the sales were carried out in accordance with a Rule 10b5-1 trading plan, which was adopted on June 12, 2024.
Investors and market watchers often pay close attention to insider trading activities, as they can provide insights into the insider's view of the company's current valuation and future prospects. The details provided in this report will likely be of interest to ACM Research shareholders and potential investors as they evaluate their positions in the company.
In other recent news, semiconductor company ACM Research has been making significant strides in the industry. ACM reported a surge in its revenue by 40% year-over-year to $202.5 million in the second quarter of 2024, backed by a 32% increase in shipments to $203 million. The company has subsequently raised its 2024 revenue outlook to between $695 million and $735 million, setting a long-term revenue target of $3 billion.
In addition to their financial growth, ACM Research has secured orders for four wafer-level packaging tools, two from a U.S.-based customer and two from a domestic research and development center. These orders are expected to be delivered in the first half of 2025, signifying the company's commitment to innovation and its expanding presence in the U.S. market.
Analysts at Roth/MKM have adjusted their outlook on the company, reducing their price target to $30 from the previous $40, while maintaining a Buy rating. Despite this adjustment, the firm remains confident in ACM Research's growth prospects. These recent developments indicate a strong operational momentum for ACM Research in the semiconductor sector.
InvestingPro Insights
The recent insider sales at ACM Research, Inc. (NASDAQ:ACMR) come at a time when the company's stock has shown significant volatility and mixed performance. According to InvestingPro data, ACMR has experienced a strong return of 39.78% over the last month, indicating recent positive sentiment. However, this follows a substantial decline of 26.73% over the past six months, highlighting the stock's volatile nature.
Despite the insider sales, ACM Research's financials appear robust. The company boasts a revenue growth of 50.42% in the last twelve months as of Q2 2024, with a healthy gross profit margin of 49.53%. This strong performance is reflected in the company's P/E ratio of 16.24, which suggests a relatively modest valuation considering its growth rate.
InvestingPro Tips point out that ACMR holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. These factors indicate financial stability, which may provide some reassurance to investors in light of the insider sales.
It's worth noting that analysts predict the company will remain profitable this year, and ACMR has been profitable over the last twelve months. This positive outlook is further supported by the company's strong operating income margin of 17.21%.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for ACMR, providing a deeper understanding of the company's financial health and market position.
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