Jeffrey L. McKibben, Chief Information Officer at Ultra Clean Holdings, Inc. (NASDAQ:UCTT), recently sold shares of the company. According to a Form 4 filing with the Securities and Exchange Commission, McKibben sold a total of 3,422 shares on November 7, 2024. The shares were sold at a price of $38.20 each, amounting to a total transaction value of $130,720.
Following this transaction, McKibben retains ownership of 18,805 shares in Ultra Clean Holdings. The company, headquartered in Hayward, California, operates in the semiconductor and related devices industry.
In other recent news, Ultra Clean Holdings, Inc. reported strong financial results for the third quarter of 2024, with revenue reaching $540.4 million. This significant rise was primarily attributed to robust demand in the AI sector and the Chinese market. TD Cowen adjusted its price target for Ultra Clean shares to $57.00 from the previous target of $60.00, despite this, the firm maintains a Buy rating on the stock. These adjustments follow the company's stronger-than-expected performance in the September 2024 quarter and a positive outlook for December 2024, with sales growth exceeding 11% in the second half of 2024 compared to the first half. Ultra Clean's ongoing momentum, particularly in the advanced packaging and equipment sectors, is expected to continue, contributing to growth into the next year. Ultra Clean anticipates a Q4 revenue between $535 million and $585 million, with earnings per share expected to range from $0.34 to $0.54. Despite a revenue decline from the previous quarter due to specific customer issues in China, the company remains optimistic about future growth, particularly in the AI sector and Chinese market.
InvestingPro Insights
Following Jeffrey L. McKibben's recent sale of Ultra Clean Holdings, Inc. (NASDAQ:UCTT) shares, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a broader perspective on the company's current position.
According to InvestingPro data, Ultra Clean Holdings has a market capitalization of $1.62 billion and has demonstrated strong revenue growth, with a 24.23% increase in quarterly revenue as of Q3 2024. This growth trajectory aligns with an InvestingPro Tip indicating that net income is expected to grow this year, suggesting potential for improved financial performance.
However, investors should note that UCTT's stock is trading at a high earnings multiple, with a P/E ratio of 441.48. This valuation metric could be a point of consideration for value-oriented investors. Despite this high multiple, another InvestingPro Tip reveals that three analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for the company's near-term performance.
It's also worth noting that while UCTT has shown strong revenue growth, the company suffers from weak gross profit margins, as highlighted by an InvestingPro Tip. The gross profit margin stands at 16.95% for the last twelve months as of Q3 2024, which may be an area for improvement.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Ultra Clean Holdings. These tips could provide valuable context for understanding the company's financial health and market position in the semiconductor industry.
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