Sherri R. Luther, the Chief Financial Officer (CFO) of Lattice (OTC:LTTC) Semiconductor Corp (NASDAQ:LSCC), has recently sold a significant amount of company stock, according to the latest regulatory filings. The transaction, which took place on August 20, 2024, involved the sale of 20,632 shares at a weighted average price of $48.8893 per share, resulting in a total value of approximately $1,008,684.
The sale was executed under a pre-arranged 10b5-1 trading plan, a tool that allows insiders to set up a predetermined schedule for buying or selling stocks at a future date. This trading plan had been adopted on November 29, 2023, indicating that the transaction was planned well in advance.
Investors should note that the prices at which Luther sold her shares ranged from $48.47 to $49.24, as detailed in the footnotes of the filing. The reported weighted average sale price consolidates these multiple trades. Luther, following the sale, still retains a substantial stake in the company, with 90,341 shares of Lattice Semiconductor Corp remaining in her direct ownership.
Lattice Semiconductor Corp, headquartered in Hillsboro, Oregon, is a notable player in the semiconductor and related devices industry. The company's stock is traded on the NASDAQ under the ticker symbol LSCC.
This sale is part of the routine disclosure by company executives and is publicly available information that provides transparency on the financial dealings of corporate insiders. Luther's transaction was officially signed by Tracy Feanny, Attorney in Fact, on August 21, 2024.
Investors often keep an eye on insider transactions as they can provide valuable insights into the company's performance and the confidence level of its top executives. However, these transactions are not necessarily indicative of future stock performance and should be considered alongside other market factors.
In other recent news, Lattice Semiconductor has been the subject of several analyst adjustments following a disappointing second quarter. Raymond James upgraded the company's stock to Outperform from Market Perform, citing a likely end to the cyclical correction in the semiconductor industry. Needham, TD Cowen, CFRA, and Stifel have all revised their price targets for Lattice Semiconductor due to the company's earnings per share of $0.23, which fell short of the expected $0.24 consensus.
Despite a 35% year-over-year decrease in sales, particularly in the industrial and automotive sectors, Lattice Semiconductor launched new products like the Lattice MachXO5D-NX and the Lattice Sentry solution stack. These are expected to contribute to future growth. Analysts from firms such as Needham and CFRA anticipate improvements in the second half of the year, driven by ongoing inventory normalization and new product introductions.
Raymond James also noted that Lattice Semiconductor's Industrial/Auto segment is anticipated to experience a gradual recovery due to inventory normalization. The company's Communications/Computing segment is reported to have fared better, benefiting from content gains in servers. This trend is expected to persist and even expand into 2025 and beyond. The new Avant product line, despite a slow start, is projected to contribute to growth.
These are the recent developments for Lattice Semiconductor, a company that continues to navigate through a period of CEO uncertainty and broader economic challenges while laying the groundwork for future growth.
InvestingPro Insights
In light of the recent stock sale by Lattice Semiconductor Corp's CFO, Sherri R. Luther, investors may find it useful to consider additional data and insights provided by InvestingPro. With a market capitalization of $6.65 billion, LSCC is trading at a P/E ratio of 35.03, which suggests a high valuation compared to earnings. This high earnings multiple is underscored by the InvestingPro Tips, which also highlight concerns over an anticipated sales decline and a potential drop in net income for the current year.
It's worth noting that despite the recent negative price momentum, with a significant price drop over the last three, six, and twelve months, LSCC's fundamentals show some resilience. The company's gross profit margin remains robust at 69.22%, and its liquid assets surpass short-term obligations, indicating a sound liquidity position. Additionally, the company operates with a moderate level of debt, which is a reassuring factor for investors concerned about financial stability.
While Lattice Semiconductor's stock has experienced a downturn, with a 1-year price total return of -47.15%, the company's ability to cover its interest payments with cash flows is a positive sign. This is a crucial aspect for investors to consider, especially in a potentially challenging economic environment. Moreover, the InvestingPro Tips suggest that despite the stock's poor performance over the last month, analysts predict the company will remain profitable this year.
For investors seeking more comprehensive analysis and additional insights, there are 18 more InvestingPro Tips available for LSCC, which can be accessed through the InvestingPro platform at https://www.investing.com/pro/LSCC. These tips could provide a deeper understanding of the company's valuation, performance expectations, and market positioning.
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