TEMPE, Ariz.—Stephen J. Beaver, Senior Vice President, General Counsel, and Chief Legal Officer of Benchmark Electronics Inc . (NYSE:BHE), recently executed a sale of company stock, according to a filing with the Securities and Exchange Commission. On November 12, Beaver sold 5,000 shares of Benchmark Electronics' common stock at a price of $50.47 per share, amounting to a total transaction value of $252,350.
Following this sale, Beaver retains ownership of 85,172 shares in the company. This transaction was carried out under a pre-established trading plan, in compliance with Rule 10b5-1(c).
In other recent news, Benchmark Electronics Inc. has demonstrated a strong financial performance, exceeding third-quarter revenue expectations with a reported revenue of $658 million. This success was largely driven by a 13% year-over-year increase in the semiconductor capital equipment sector. However, declines were noted in the industrial, medical, and advanced computing and communications sectors. The company's non-GAAP earnings per share reached $0.57, maintaining a non-GAAP gross margin above 10% for the fourth consecutive quarter.
Looking to the future, Benchmark projects Q4 revenue to be between $640 million and $680 million, with earnings per share ranging from $0.53 to $0.59. The company also plans to continue its positive free cash flow, projecting over $130 million for the year.
Needham, a financial consulting firm, has maintained a Buy rating on Benchmark and raised the stock's price target to $48 from $45, following the company's robust quarterly performance. While Benchmark faces challenges in some sectors, such as post-COVID inventory adjustments in the medical sector, it has also seen significant new business wins in the semiconductor and Aerospace and Defense sectors. The company's focus on product development is evident from its increased engagement in engineering services, particularly in semiconductors.
InvestingPro Insights
While Stephen J. Beaver's recent stock sale might raise eyebrows, a closer look at Benchmark Electronics' financial metrics and market performance provides a more comprehensive picture. According to InvestingPro data, Benchmark Electronics has demonstrated strong market performance, with a remarkable 107.4% price total return over the past year. This impressive gain is complemented by a 25.38% return over the last six months, indicating sustained positive momentum.
InvestingPro Tips highlight that Benchmark Electronics operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations, suggesting a stable financial position. This financial stability could be reassuring to investors in light of the insider sale. Additionally, the company's valuation implies a strong free cash flow yield, which may indicate that the stock is potentially undervalued despite its recent price surge.
It's worth noting that Benchmark Electronics has a market capitalization of $1.75 billion and trades at a P/E ratio of 27.93. While this P/E ratio might seem high at first glance, it's important to consider that analysts predict the company will be profitable this year, as another InvestingPro Tip points out. This positive outlook, combined with the company's recent financial performance, may provide context for the insider transaction and the stock's valuation.
For investors seeking a deeper understanding of Benchmark Electronics' prospects, InvestingPro offers 11 additional tips and a wealth of real-time financial metrics to aid in investment decision-making.
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