In a recent move, Brian E. Harding, the Chief Accounting Officer of Ultra Clean Holdings, Inc. (NASDAQ:UCTT), a company specializing in semiconductor devices, has sold a significant portion of his stock holdings. The transactions, which occurred on May 9, 2024, involved the sale of shares at varying prices, resulting in a total sale value exceeding $480,000.
Harding's sale was conducted in multiple transactions with prices ranging from $43.5 to $44.0002 per share. Specifically, the executive sold 898 shares at a weighted average price of $43.7098, and another batch of 8,102 shares at a slightly higher weighted average price of $44.0002. Additionally, 2,000 shares were sold at a fixed price of $43.5000. Following these sales, Harding's ownership in the company decreased but still amounted to a substantial 37,415 shares of common stock.
Earlier in the same week, on May 3, Harding had acquired 898 shares of Ultra Clean Holdings stock at a price of $21.9385 per share under the company's Employee Stock Purchase Plan. This acquisition, voluntarily reported and exempt under Rule 16b-3(c), added approximately $19,700 worth of stock to his holdings before the subsequent sales.
Ultra Clean Holdings, Inc. has not provided any official comment on these transactions. The details of the sales, including the exact number of shares sold at each price within the reported ranges, have been made available upon request, as noted in the footnotes of the SEC filing. This indicates a commitment to transparency from the executive and the company regarding these stock transactions.
Investors and followers of Ultra Clean Holdings, Inc. will likely keep an eye on insider activity for hints about the company's financial health and future prospects. Insider sales and purchases can sometimes provide valuable insights into the company's performance and outlook, although they do not always indicate the company's long-term potential.
InvestingPro Insights
As investors digest the recent stock transactions by Brian E. Harding of Ultra Clean Holdings, Inc. (NASDAQ:UCTT), it's essential to consider the broader financial context of the company. According to real-time data from InvestingPro, Ultra Clean Holdings is currently experiencing significant stock price volatility, a trait that has been consistent over the past year. Despite this, the company has seen a substantial price uptick over the last six months, with a 72.25% total return, signaling strong investor confidence in the near term.
An InvestingPro Tip points out that while analysts are predicting profitability for UCTT in the current year, there have been two downward earnings revisions for the upcoming period. This could suggest that while the company's prospects are generally positive, there may be some caution regarding immediate financial results. Additionally, Ultra Clean Holdings is trading at a high EBITDA valuation multiple, which may indicate that the stock is priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization.
InvestingPro Data also shows that Ultra Clean Holdings has a market capitalization of $1,950M, with a revenue of $1,778.9M for the last twelve months as of Q1 2024. However, during the same period, the company experienced a revenue decline of -20.71%. This juxtaposition of a high market cap and declining revenue could be a point of analysis for investors considering the company's valuation and growth trajectory.
For those looking to explore further, there are additional InvestingPro Tips available for UCTT, which could provide deeper insights into the company's financial health and stock performance. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these tips.
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