SkyWater Technology, Inc. (NASDAQ:SKYT) director Gregory B. Graves has sold a total of 5,432 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on May 21, 2024, resulted in proceeds exceeding $44,000 for Graves.
The shares were sold at a weighted average price of $8.1026, with individual transactions occurring within a price range of $8.10 to $8.12. This sale was executed to cover statutory tax withholding obligations related to the vesting of restricted stock units, as indicated by the footnotes in the SEC filing.
Following the sale, Graves's ownership in the semiconductor company stands at 14,844 shares of common stock. The transaction reflects a routine financial move often made by corporate executives to manage their stock-based compensation and associated taxes.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into the confidence levels of company leadership in the firm's prospects. However, such sales are not uncommon and can be motivated by a variety of personal financial planning reasons.
SkyWater Technology, headquartered in Bloomington, Minnesota, operates within the semiconductor industry and is known for its advanced manufacturing services. The company's stock is publicly traded on the NASDAQ exchange, and it continues to be a key player in the semiconductor and related devices sector.
InvestingPro Insights
As SkyWater Technology, Inc. (NASDAQ:SKYT) navigates the semiconductor industry's complex landscape, recent activity by company insiders, such as the sale of shares by director Gregory B. Graves, has brought additional attention to the company's financial health and stock performance. In light of this, InvestingPro data and tips offer a deeper look into the company's valuation and market sentiment.
An important metric to consider is SkyWater's market capitalization, which currently stands at $378.8 million, reflecting the company's size and market value. This, coupled with a Price to Earnings (P/E) ratio of -11.38 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -13.15, indicates that the company is not profitable at this time. The Price to Book (P/B) ratio of 7.38 suggests that the market is valuing the company at a premium relative to its book value.
InvestingPro Tips highlight that SkyWater has been experiencing volatility in its stock price, which is reflected in the recent price movements, including a 1-month total return of -10.45% and a 1-year total return of -24.28%. The company's gross profit margin stands at 19.19% for the last twelve months as of Q1 2024, which InvestingPro analysts consider weak. Additionally, they have noted that SkyWater is trading at a high EBITDA valuation multiple and does not pay a dividend to shareholders, which may be relevant for income-focused investors.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights. Currently, there are 7 more InvestingPro Tips available for SkyWater Technology, which can be found at https://www.investing.com/pro/SKYT. To access these insights and more, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
InvestingPro's fair value estimate for SkyWater stands at $7.64, which is below the analyst target of $12 but above the previous close price of $8.14. This valuation takes into account various financial metrics and market conditions, offering investors a benchmark for the company's potential fair market value.
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