Everspin Technologies Inc . (NASDAQ:MRAM) CEO Sanjeev Aggarwal has sold a total of 1,310 shares of the company's common stock, according to a recent SEC filing. The transaction, which took place on August 7, 2024, was executed at a price of $5.40 per share, resulting in a total value of $7,074.
The sale was reported to be solely for the purpose of covering taxes due upon the vesting of Restricted Stock Units, as noted in the accompanying footnotes of the filing. Following this transaction, Aggarwal's remaining ownership in Everspin Technologies stands at 457,738 shares of common stock.
This financial move comes as part of the regular financial activities of corporate executives, who often sell shares for personal financial management, including tax obligations. The transaction was signed off by Matt Tenorio, Attorney-in-Fact, indicating the use of a power of attorney in the execution of this sale.
Investors and followers of Everspin Technologies may keep an eye on such transactions as they provide insights into executive decisions and confidence in the company's stock. The semiconductor company, specializing in magnetic random-access memory (MRAM), has its headquarters in Chandler, Arizona, and operates within the broader technology sector.
Everspin Technologies has not made any additional comments regarding the transaction.
InvestingPro Insights
In light of the recent share sale by Everspin Technologies Inc.'s (NASDAQ:MRAM) CEO, investors may benefit from a closer examination of the company's financial metrics and market performance. According to InvestingPro data, Everspin Technologies currently holds a market capitalization of $116.11 million. Despite recent market challenges, the company's gross profit margin remains robust at 56.66% for the last twelve months as of Q2 2024. This indicator of financial health is crucial for stakeholders assessing the company's ability to manage costs relative to revenue.
However, it is worth noting that the company has been trading at a high earnings multiple, with a P/E ratio of 66.75 and an adjusted P/E ratio for the last twelve months as of Q2 2024 soaring to 424.72. This suggests that the market has high expectations for the company's future earnings growth, which could be a point of concern if the company does not meet these expectations. Additionally, the stock has experienced significant volatility, as indicated by a one-week price total return of -13.43% and a six-month price total return of -40.68%. This could signal a cautious sentiment among investors.
Among the InvestingPro Tips, it is highlighted that Everspin Technologies holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations, which may provide some reassurance regarding the company's financial stability. On the other hand, analysts anticipate a sales decline in the current year, and net income is also expected to drop. These factors, combined with the CEO's recent stock sale, could influence investor perceptions.
For those seeking a deeper dive into Everspin Technologies' financials and market performance, InvestingPro offers additional tips, including insights on the company's valuation multiples and profitability forecasts. There are 14 additional InvestingPro Tips available for Everspin Technologies at https://www.investing.com/pro/MRAM, which could further assist investors in making informed decisions regarding their interest in the company.
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