Everspin Technologies Inc . (NASDAQ:MRAM) Chief Financial Officer Anuj Aggarwal has sold a total of 12,984 shares of the company's common stock, a transaction valued at approximately $78,033. The sale occurred on July 2, 2024, with the shares being sold at a price of $6.01 each.
The transaction was disclosed in a recent filing with the Securities and Exchange Commission. According to the filing, the shares were sold primarily to cover tax obligations related to the vesting of Restricted Stock Units. After the sale, Aggarwal still holds 276,940 shares of Everspin Technologies' common stock, indicating continued investment in the company's future.
Everspin Technologies is known for its innovation in the semiconductor sector, specializing in magnetic random access memory (MRAM) products. The sale by a high-ranking executive such as the CFO can often attract the attention of investors, as it reflects on the insider's view of the company's financial health and future prospects.
Investors and market watchers typically monitor such transactions for insights into executive sentiment, although sales to cover tax obligations are a common practice and not necessarily indicative of a negative outlook.
Everspin Technologies has not released any official statement regarding this transaction at the time of reporting. The company's stock performance and future financial results will continue to be followed closely by investors and analysts alike.
In other recent news, Everspin Technologies has experienced a series of developments. The company's Q1 2024 earnings call revealed a revenue of $14.4 million and a gross margin of 56.5%. Despite a forecast of flat product revenue for Q2, Everspin is optimistic about a revenue increase in the latter half of the year, thanks to design wins in Toggle and STT-MRAM. The company's cash balance stands at $34.8 million, and it anticipates funding from the CHIPS and Science Act.
Meanwhile, investment firm Needham has revised its target for Everspin shares due to delays in two significant licensing projects. The firm lowered its price target from $12.00 to $8.00 but maintained a Buy rating. Everspin's management has chosen not to include these projects in their financial guidance, acknowledging their potential to boost estimates if finalized in Q2 2024.
However, the company faces challenges including macroeconomic factors, inventory adjustments, and the depreciation of the Japanese Yen, leading to a downward revision of product revenue estimates. Despite these issues, modest growth is still expected for the second half of 2024. These are among the recent developments surrounding Everspin Technologies.
InvestingPro Insights
Everspin Technologies Inc. (NASDAQ:MRAM) has recently seen a significant return over the last week, with a price total return of 11.25%. This performance is particularly notable in light of the CFO's recent sale of shares. The company's stock is currently trading at a P/E ratio of 16.65, which may be considered attractive given the near-term earnings growth outlook. This is supported by the company's strong liquidity position, where liquid assets exceed short-term obligations, reflecting a stable financial base for the company.
InvestingPro Tips for Everspin Technologies suggest that the company is trading at a low P/E ratio relative to near-term earnings growth and holds more cash than debt on its balance sheet, which may be of interest to value-oriented investors. Additionally, the company has been profitable over the last twelve months, which could provide some reassurance to shareholders concerned about the recent insider sale.
For those looking to delve deeper into Everspin Technologies' financial health and future prospects, there are 8 additional InvestingPro Tips available. These tips can offer further insights into the company's performance and potential investment opportunities. Interested readers can explore these tips by visiting: https://www.investing.com/pro/MRAM. To enhance your investing strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
InvestingPro Data metrics reveal a market capitalization of $138.49 million and a forward-looking PEG ratio of 0.3, indicating potential for growth at a reasonable price. With a revenue growth of 4.74% over the last twelve months as of Q1 2024, Everspin Technologies is maintaining a positive trajectory, despite analysts anticipating a sales decline in the current year. The gross profit margin stands at a healthy 58.37%, showcasing the company's ability to maintain profitability amidst competitive pressures in the semiconductor industry.
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