In a recent transaction, Guillaume Marie Jean Rutten, the President and CEO of Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), sold 18,125 shares of the company's common stock. The sale, which took place on September 16, 2024, was executed at a price of $30.00 per share, resulting in a total value of $543,750.
The transaction was carried out in accordance with a Rule 10b5-1 trading plan, which Rutten had previously adopted on May 28, 2024. Rule 10b5-1 trading plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of trading on nonpublic information.
On the same day, Rutten also acquired 8,125 shares of common stock at a price of $14.17 per share, totaling $115,131. This transaction was related to the exercise of stock options that were granted to Rutten as part of his compensation package. The options, which allowed the purchase of 375,000 shares, had vested over three years and were fully exercisable by the third anniversary of the grant date, as noted in the footnotes of the Form 4 filing.
Following these transactions, Rutten's ownership in the company stands at 214,971 shares of common stock. Investors often monitor the buying and selling activities of company insiders as they may provide insights into the executive's view of the company's future prospects.
Amkor Technology , headquartered in Tempe, Arizona, is a leading provider in the semiconductor packaging and test services industry. The company's shares are publicly traded on the NASDAQ stock market under the ticker symbol AMKR.
In other recent news, Amkor Technology reported a strong second-quarter performance with revenues reaching $1.46 billion and earnings per share at $0.27, surpassing consensus estimates. The semiconductor packaging and test services provider also provided third-quarter guidance slightly below analyst expectations, mainly due to a delay in its 2.5D technology ramp-up and a slower than anticipated recovery in the automotive and industrial sectors. Despite these challenges, the company remains optimistic about its full-year revenue from 2.5D technology, expecting it to quadruple year-over-year.
Amkor Technology has also announced plans to expand its 2.5D capacity in 2025 and anticipates a significant increase in the production of high-end smartphones, laptops, and wearable devices in the second half of 2024. Notably, Needham has increased the price target for Amkor Technology to $45 from the previous target of $40 while maintaining a Buy rating on the stock.
These are recent developments for the company, which also forecasts growth amid industry trends. Despite flat expectations for the automotive and industrial markets, there is strong demand projected for high-performance computing and ARM-based PCs. The company also plans to capitalize on industry trends and expand its geographic presence.
InvestingPro Insights
As investors contemplate the implications of the recent insider transactions by Guillaume Marie Jean Rutten, President and CEO of Amkor Technology, Inc. (NASDAQ:AMKR), it's worth noting some key metrics and insights from InvestingPro that could shed light on the company's financial health and future prospects. Amkor Technology has been a prominent player in the Semiconductors & Semiconductor Equipment industry, and recent data indicates that it operates with a moderate level of debt, which may provide some financial flexibility.
According to InvestingPro, Amkor Technology currently has a market capitalization of approximately $7.45 billion USD, and its stock price movements have been quite volatile. The company's Price/Earnings (P/E) ratio stands at 19.99, which is relatively close to its adjusted P/E ratio for the last twelve months as of Q2 2024, at 19.82. This suggests a consistency in earnings valuation over the period. Notably, the company has raised its dividend for four consecutive years, reflecting a commitment to returning value to shareholders. The dividend yield as of the last recorded date stands at 1.03%.
However, it's important to highlight that five analysts have revised their earnings downwards for the upcoming period, which could indicate potential headwinds. Additionally, the company suffers from weak gross profit margins, with the last twelve months as of Q2 2024 showing a gross profit margin of 15.25%.
For those seeking more comprehensive analysis and additional insights, there are 9 more InvestingPro Tips available for Amkor Technology at https://www.investing.com/pro/AMKR. These tips may offer deeper understanding and aid investors in making more informed decisions regarding their investments in AMKR.
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