ACM Research, Inc. (NASDAQ:ACMR) executive Jian Wang, who serves as the Chief Executive Officer and President of ACM Research (Shanghai), Inc., a subsidiary of the issuer, has recently sold a significant amount of company stock, according to the latest filings with the Securities and Exchange Commission (SEC). On June 10 and 11, Wang sold a total of 60,000 shares of Class A Common Stock, with the transactions amounting to over $1.35 million.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which Wang had adopted on March 7, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing an affirmative defense against accusations of trading on non-public, material information.
The sold shares fetched prices ranging from $22.07 to $23.68, as per the weighted average prices reported. On June 10, 30,000 shares were sold at an average price of $22.07 per share, and on June 11, Wang sold 28,320 shares at an average price of $22.98 and an additional 1,680 shares at an average price of $23.68.
In addition to the sales, Wang also acquired 60,000 shares through the exercise of stock options on June 10 and 11. These options had an exercise price of $4.62 per share, resulting in a total transaction value of $277,200 for the exercised options. It's important to note that these transactions do not affect the total value of stock sold but do provide context for the overall changes in Wang's holdings.
Following the reported transactions, Jian Wang's ownership in ACM Research, Inc. has been adjusted to reflect the recent sales and option exercises. Investors and market watchers often scrutinize such insider trading activity for insights into executive sentiment and potential future performance of the company's stock.
ACM Research, Inc., headquartered in Fremont, California, specializes in developing and manufacturing single-wafer wet cleaning equipment, which is essential for producing advanced semiconductors. The company's stock is publicly traded on the NASDAQ exchange under the ticker symbol ACMR.
In other recent news, ACM Research reported a significant increase in Q1 2024 earnings, with revenues reaching $152.2 million, a 105% rise from the same period last year. The company's single wafer and semi-critical cleaning products have emerged as the primary revenue drivers. ACM Research also surpassed expectations with its gross margin reaching 52.5%, exceeding the target range of 40-45%. Despite the rise in operating expenses to $40.1 million, due to increased product development costs, the net income stood at $34.6 million, with earnings per diluted share at $0.52.
These recent developments suggest a positive revenue outlook for the year, with the company aiming to outperform growth rates in both China and the global Wafer Fab Equipment market. However, revenues from Electrochemical Plating, furnace, and other technologies slightly dipped by 3%, and Q2 shipments are expected to be lower than Q1 due to delayed shipments from the previous quarter and manufacturing challenges. On the brighter side, the company anticipates significant revenue contributions from new products like the bevel etcher cleaning tool and a single critical CO2 dry cleaning tool in the coming years.
ACM Research continues to focus on international markets with the eventual goal of evenly splitting revenue between China and other regions. The company is actively engaging with key customers, including Hynix, and is focusing on the advanced packaging market for potential revenue opportunities. As the company continues to navigate the dynamic WFE landscape, investors will be closely monitoring its performance in the forthcoming quarters.
InvestingPro Insights
As ACM Research, Inc. (NASDAQ:ACMR) navigates the market following insider trading activity by executive Jian Wang, investors may find value in considering some key metrics and insights from InvestingPro. The company currently boasts a market capitalization of approximately $1.53 billion and is trading at a P/E ratio of 17.11, which is relatively low considering its near-term earnings growth. This could suggest that the stock is undervalued, offering an attractive entry point for investors seeking growth opportunities.
An InvestingPro Tip highlights that ACM Research holds more cash than debt on its balance sheet, indicating a strong financial position that could reassure investors of the company's stability and ability to invest in future growth. Additionally, the company has been profitable over the last twelve months, with analysts predicting profitability to continue this year. These factors, combined with a high return over the last year, underscore the company's robust financial health and potential for sustained growth.
Relevant data from the last twelve months as of Q1 2024 shows that ACM Research has experienced significant revenue growth of 51.02%, with quarterly revenue growth even more impressive at 104.95%. The company's gross profit margin stands at 49.61%, reflecting efficient operations and strong market demand for its semiconductor manufacturing equipment.
For those interested in further insights, there are additional InvestingPro Tips available for ACM Research, which can be accessed at https://www.investing.com/pro/ACMR. Readers looking to deepen their analysis can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools, investors can make more informed decisions based on comprehensive data and expert analysis.
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