In a recent transaction on August 13, Gerald J. Maginnis, a director at INTEST Corp (NYSEAMERICAN:INTT), purchased 1,750 shares of the company's common stock at a price of $6.42 per share, amounting to a total investment of $11,235.
This acquisition has increased Maginnis' direct ownership in the company to 61,500 shares, which includes 4,500 unvested restricted shares scheduled to vest in the upcoming months—specifically, in installments on September 30, 2024, and December 31, 2024. The transaction reflects a vote of confidence in the company's future prospects from a key member of its board.
INTEST Corp, which is incorporated in Delaware and headquartered in Mt. Laurel, New Jersey, specializes in the design and manufacture of instruments for measuring and testing electricity and electrical signals, serving the industrial applications and services sector.
Investors often keep a close eye on insider transactions like these, as they can provide insights into the executives' perspectives on the company's valuation and future performance. While this purchase is not necessarily indicative of future movements in INTEST Corp's stock price, it is a piece of information that market participants may consider as part of their investment research.
In other recent news, inTEST Corp announced its financial results for the second quarter of 2024, posting record revenues of $34 million and an adjusted earnings per share (EPS) of $0.08, which surpassed prior guidance. Despite facing challenges in the semiconductor market, the company's acquisition of Alfamation added an additional $9.7 million to its revenue. However, inTEST anticipates a slight decrease in revenue for the third quarter, while expecting an improvement in gross margins.
The full-year revenue is projected to be between $128 million and $133 million, with gross margins around 42% to 43%. The company has also implemented cost-saving measures, anticipated to save $1.2 million annually. Furthermore, inTEST is actively pursuing mergers and acquisitions opportunities and focusing on diversification, including geographic and channel partner expansion.
Despite a less favorable mix leading to lower gross margins, the company remains optimistic about its diversification efforts and the successful integration of Alfamation. inTEST's focus on green energy applications and competitive displacement programs is expected to drive future growth. These are among the recent developments for inTEST Corp.
InvestingPro Insights
Recent insider activity at INTEST Corp (NYSEAMERICAN:INTT) has drawn attention to the company's stock performance and financial health. According to InvestingPro data, INTEST Corp has experienced a revenue decline of 3.93% over the last twelve months as of Q2 2024. Despite this, the company has managed a gross profit margin of 43.84%, suggesting a strong ability to control costs relative to its revenue.
However, investors should note that the company's stock price has shown significant volatility. The price total return over the past month has decreased by 39.74%, and over the past six months, it has fallen by 41.61%, reflecting the challenges INTEST Corp has faced in the market. These metrics underscore the importance of monitoring the company's performance closely.
Two InvestingPro Tips that are particularly relevant in light of the recent insider purchase include a forecasted net income drop for the company this year, and the observation that the stock has fared poorly over the last month. These insights may help investors understand the broader context of the director's investment and the company's current financial trajectory. For those seeking more comprehensive analysis, there are additional tips available on InvestingPro, including an in-depth look at the company's valuation and cash flow metrics.
As of now, InvestingPro lists a total of 13 additional tips for INTEST Corp, which can be found at: https://www.investing.com/pro/INTT. These tips provide a more nuanced view of the company's financial health and market position, which can be invaluable for investors making informed decisions.
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