Robert Dennehy, Senior Vice President of Operations at MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), recently executed a sale of company stock. According to a recent SEC filing, Dennehy sold 2,539 shares of common stock on November 19, 2024, at a price of $120.80 per share. The total value of the transaction amounted to $306,711. Following this sale, Dennehy retains ownership of 31,206 shares in the company. The transaction was conducted under a pre-arranged trading plan, established in compliance with Rule 10b5-1 under the Securities Exchange Act of 1934.
In other recent news, MACOM Technology Solutions reported record-breaking financial results for the fourth fiscal quarter of 2024. The semiconductor solutions supplier announced a record quarterly revenue of $200.7 million, an adjusted earnings per share (EPS) of $0.73, and a full-year revenue of $729.6 million, resulting in an EPS of $2.56. The fiscal year concluded with a record backlog and substantial cash reserves.
MACOM also completed the acquisition of ENGIN-IC, enhancing its microwave IC design capabilities for defense applications. Needham & Company adjusted its stock price target for MACOM to $150 from the previous $120 while reiterating a Buy rating on the stock. This decision follows the company's recent financial results which aligned with expectations and included a robust forecast.
In light of these recent developments, MACOM projects revenue between $212 million and $218 million and an adjusted EPS of $0.75 to $0.81 for fiscal Q1 2025. Needham foresees new optical technologies becoming significant contributors to MACOM's revenue stream, potentially as soon as fiscal year 2025. MACOM aims to surpass an annualized revenue run rate of $1 billion by fiscal year 2026 and is focusing on enhancing its semiconductor technologies leadership.
InvestingPro Insights
To provide additional context to Robert Dennehy's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI).
MACOM's stock has shown strong performance, with a 54.08% total return over the past year. This impressive gain aligns with the company's positive momentum, as evidenced by its current trading price of $127.56, which is 93.63% of its 52-week high. These figures suggest that investors have been optimistic about MACOM's prospects, potentially influencing insider trading decisions.
InvestingPro Tips highlight that MACOM's net income is expected to grow this year, and 10 analysts have revised their earnings upwards for the upcoming period. These positive indicators may explain why the stock is trading at a high earnings multiple, with a P/E ratio of 123.76. While this valuation might seem steep, it could be justified by the company's growth prospects and market position.
It's worth noting that MACOM operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating a solid financial foundation. This financial stability could provide reassurance to investors, even as insiders like Dennehy execute pre-planned stock sales.
For readers seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for MACOM, providing a deeper understanding of the company's financial health and market position.
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