According to a regulatory filing, John Kuber, senior vice president and chief financial officer of MACOM Technology Solutions Holdings, Inc. (NASDAQ: ) recently sold a significant portion of the company’s stock. On November 20, Kober executed the sale of 19,470 shares of common stock, resulting in a total transaction value of approximately $2.47 million.
Shares were sold at a weighted average price, with transaction prices ranging from $126.12 to $127.58 per share. Following these transactions, Kober retains ownership of 51,489 shares in the company. The sale was made as part of a pre-established trading plan under Rule 10b5-1, which would have allowed insiders to set a predetermined schedule for selling stock to avoid potential conflicts of interest. is
MACOM Technology Solutions, headquartered in Lowell, Massachusetts, is a leading player in the semiconductor industry.
In other recent news, MACOM Technology Solutions reported record-breaking financial results for the fourth fiscal quarter of 2024. The semiconductor solutions provider announced quarterly revenue of $200.7 million and adjusted earnings per share (EPS) of $0.73. The full fiscal year ended with revenue of $729.6 million and EPS of $2.56. MACOM also completed the acquisition of ENGIN-IC, expanding its microwave IC design capabilities for defense applications. Needham & Co. raised its stock price target for MACOM to $150 from a previous $120, reiterating a buy rating. The decision was made following MACOM’s strong performance, particularly in the data center segment. The firm expects MACOM’s revenue from data center operations to grow significantly as products achieving 800G and 1.6T speeds, despite volatility in the AI architecture sector, will continue to grow MACOM across all end markets, particularly data centers. I expect sequential revenue growth with an expected 15% growth. These are recent developments for MACOM.
InvestingPro Insights
To provide additional context to John Kuber’s recent stock sale, it’s worth reviewing MACOM Technology Solutions’ current financial position and market performance. According to InvestingPro data, MACOM has a market capitalization of $9.5 billion, reflecting its significant presence in the semiconductor industry.
According to recent data, the company’s stock has performed impressively, with a one-year total price return of 54.08%. This strong return is consistent with an InvestingPro tip indicating that MACOM has delivered high returns over the past year. Additionally, the stock is trading near its 52-week high, with the current price at 93.63% of its peak.
MACOM’s financial health appears strong, with an InvestingPro tip that liquid assets outweigh short-term liabilities. This shows that the company maintains a strong balance sheet, which is very important in the capital intensive semiconductor industry.
From a valuation perspective, MACOM is trading at a high earnings multiple, with a P/E ratio of 123.76. This elevated valuation is consistent with investing pro-tips that highlight that the company is trading at high EBIT, EBITDA, and revenue valuation multiples. Such high multiples may indicate investor optimism about MACOM’s growth prospects or market position.
It is noteworthy that 10 analysts have revised their earnings upward for the upcoming period, expressing positive sentiments about the company’s near-term financial performance. This optimism is further supported by the expectation that net income will increase this year, as another InvestingPro tip indicated.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional recommendations for MACOM Technology Solutions, providing a deeper understanding of a company’s financial health and market position.
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