QuickLogic Corp (NASDAQ:QUIK) President and CEO Brian C. Faith sold a significant number of shares on August 27, 2024, according to the latest SEC filings. The transaction involved the sale of 27,866 shares of common stock at an average price of $8.83, totaling over $246,120.
The sale was part of a rectification for a miscalculation by the issuer regarding shares that were required to be sold to cover the tax liability owed by Faith. The company had previously failed to withhold a sufficient number of shares to cover Faith's tax obligations for the years 2022, 2023, and the first half of 2024. To address this, the shares were sold to satisfy the tax liability.
Interestingly, despite the sale, Faith's percentage ownership in the company is expected to remain relatively stable. This is due to the vesting of additional shares previously issued to him and a one-time grant of restricted stock units that vested on August 26, 2024. The grant, which consisted of 16,865 shares, was provided to compensate for the aforementioned miscalculation and vested 100% upon the grant date.
The transactions took place over a range of prices from $8.75 to $9.02. Faith has agreed to provide full information regarding the number of shares sold at each separate price within this range upon request.
Investors and followers of QuickLogic Corp will continue to monitor insider transactions as they provide insights into executive perspectives on the company's valuation and future prospects.
In other recent news, QuickLogic Corporation, a key player in Field-Programmable Gate Arrays (FPGAs), has reported a 41% year-over-year increase in Q2 fiscal 2024 earnings, despite a 31% sequential decline from Q1. The company has revised its full-year growth projection to 15%, attributing this to scheduling push-outs, but with no loss of contracts to competitors. QuickLogic is also expecting a sharp rebound in revenue in Q4 and anticipates accelerated growth thereafter.
The company's strategy includes expanding its product lines and partnerships, targeting sectors such as defense, industrial, and consumer electronics. QuickLogic's subsidiary, SensiML, is projected to achieve record revenue in 2024 with its new Open-Source strategy. The company's strategic partnerships with Intel (NASDAQ:INTC) Foundry, BAE Systems (LON:BAES), CTG, among others, are expected to strengthen its market position.
QuickLogic is also engaged in the development of an FPGA Chiplet with YorChip, expected to release in the second half of 2025, and has proposals worth over $40 million, indicating potential growth. These recent developments underline QuickLogic's commitment to innovation and customer needs, as it leverages its three decades of FPGA expertise to drive more IP business and revenue opportunities.
InvestingPro Insights
QuickLogic Corp (NASDAQ:QUIK), a semiconductor company known for its customizable and flexible silicon platforms, has been the subject of investor attention following insider transactions by its CEO. As stakeholders evaluate the implications of these sales, several metrics and insights from InvestingPro can provide a broader context for the company's current financial health and future prospects.
InvestingPro Data shows that QuickLogic Corp has a market capitalization of approximately $124.77 million, reflecting its size and market value within the semiconductor industry. The company's Price-to-Earnings (P/E) ratio, sitting at 69.18, indicates a high valuation relative to its current earnings. However, the PEG ratio, which stands at 0.59, suggests that the company's earnings growth is expected to outpace this valuation over time.
One of the InvestingPro Tips highlights that QuickLogic Corp is expected to see net income growth this year, which could be a positive signal for investors looking for profitability potential. This anticipated growth aligns with the company's strong revenue growth over the last twelve months, which was reported at an impressive 66.32%.
It is also worth noting that QuickLogic Corp has experienced significant price volatility, with stock price movements being quite volatile. The company's stock price has declined over recent months, with a 1-month price total return of -22.38% and a 3-month price total return of -32.02%. Despite these short-term setbacks, the long-term view may be more optimistic, as analysts predict the company will be profitable this year, an insight echoed by the company's healthy gross profit margin of 69.95%.
For investors seeking to delve deeper into the financial metrics and strategic assessments of QuickLogic Corp, InvestingPro offers additional insights and tips, including 13 more InvestingPro Tips available at https://www.investing.com/pro/QUIK. These tips could provide valuable guidance for making informed investment decisions regarding QuickLogic Corp.
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