Lee Kang Jyh, the Chief Executive Officer of Photronics Inc. (NASDAQ:PLAB), has sold a portion of his holdings in the company. According to the latest SEC filing, Lee sold 8,750 shares of common stock on December 20, 2024, at a weighted average price of $24.33 per share. This transaction amounted to a total value of approximately $212,887. The sale comes as Photronics stock has experienced a 9% decline over the past week, though InvestingPro analysis indicates the company maintains a "GREAT" financial health score, supported by strong cash flows and minimal debt.
Following this transaction, Lee retains ownership of 545,850 shares in Photronics, representing a significant stake in the $1.5 billion market cap company. The sale was executed in multiple trades, as noted in the filing. According to InvestingPro, which offers comprehensive analysis and 8 additional key insights about Photronics, the stock currently appears slightly undervalued based on their proprietary Fair Value model.
In other recent news, Photronics Inc. has announced the appointment of David Garcia to its Board of Directors. Garcia brings 30 years of legal experience, including roles at Holland & Hart, Wilson Sonsini Goodrich & Rosati, and Venture Law Group. His expertise in mergers and acquisitions, venture capital financing, and securities offerings is expected to aid Photronics in exploring various business development opportunities.
The company has also reported third-quarter earnings for 2024, revealing an EPS of $0.51, slightly below the anticipated $0.52, and a revenue of $211 million. Despite this minor miss, Photronics continues to maintain financial stability, marked by robust cash reserves and a low debt profile. The company has also expanded its share repurchase program to $100 million.
Analysts from DA Davidson have raised the target for Photronics to $35, citing a promising investment year outlook for 2025. Despite acknowledging near-term challenges in various end markets and political uncertainties affecting Taiwan and China, the firm maintains a long-term bullish perspective on Photronics' prospects.
Photronics' Q4 revenue guidance stands at $213-$221 million with a non-GAAP EPS range of $0.51-$0.54. The company is keen on expanding its IC capacity and exploring strategic expansion options in the U.S., Europe, and Asia. These recent developments reflect Photronics' confidence in the long-term prospects of the photomask market, driven by trends in AI and mobile computing.
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