Susan Ocampo, a director and significant shareholder of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), has sold shares valued at approximately $32.3 million. The transactions, executed on November 22, 25, and 26, involved the sale of multiple batches of common stock. These sales were conducted at prices ranging from $133.15 to $137.18 per share. Following these transactions, Ocampo holds 6,313,193 shares indirectly through the Ocampo Family Trust and additional shares through trusts for her children.
In other recent news, MACOM Technology Solutions has been the subject of favorable analyst attention. Needham & Company upgraded its stock price target for MACOM to $150 from the previous $120, maintaining a Buy rating on the stock. This adjustment comes after MACOM's recent financial results met expectations, with a strong forecast particularly due to the company's performance in the Data Center sector.
MACOM has also reported record-breaking financial results for the fourth fiscal quarter of 2024, with a record quarterly revenue of $200.7 million, an adjusted earnings per share (EPS) of $0.73, and a full-year revenue of $729.6 million. The company completed the acquisition of ENGIN-IC, enhancing its microwave IC design capabilities for defense applications. MACOM projects revenue between $212 million and $218 million and an adjusted EPS of $0.75 to $0.81 for fiscal Q1 2025.
In terms of future plans, MACOM aims to surpass an annualized revenue run rate of $1 billion by fiscal year 2026. The company anticipates sequential revenue growth across all end markets, especially in data centers with an expected 15% growth. Despite potential headwinds due to the cyclical volatility of the semiconductor industry, Needham foresees new optical technologies becoming significant contributors to MACOM's revenue stream, potentially as early as fiscal year 2025.
InvestingPro Insights
The recent stock sales by Susan Ocampo come at a time when MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is experiencing significant market momentum. According to InvestingPro data, MTSI's stock has shown a strong performance, with a 59.02% price total return over the past year and a 28.81% return in the last three months. This upward trend is further emphasized by the stock trading at 95.98% of its 52-week high, indicating robust investor confidence.
InvestingPro Tips highlight that MTSI's net income is expected to grow this year, and 10 analysts have revised their earnings upwards for the upcoming period. These positive forecasts may explain the stock's current valuation, with a P/E ratio of 125.24, suggesting investors are pricing in future growth expectations.
The company's financial health appears solid, with InvestingPro Tips noting that liquid assets exceed short-term obligations and MTSI operates with a moderate level of debt. This financial stability could be reassuring to investors, despite the insider selling activity.
It's worth noting that MTSI's revenue growth remains strong, with a 33.47% increase in the most recent quarter. However, the company's high valuation multiples across various metrics, including EBIT, EBITDA, and revenue, as pointed out by InvestingPro Tips, may warrant careful consideration by potential investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 18 additional tips for MTSI, providing a deeper dive into the company's financial health and market position.
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