In a recent transaction, Ronald Basso, the Chief Legal & Compliance Officer of Coherent Corp. (NASDAQ:NYSE:COHR), sold 4,741 shares of the company's common stock. The stock was sold at a weighted average price ranging from $77.91 to $77.9206, with the total value of the sale amounting to approximately $369,395.
The transaction, which took place on September 13, 2024, was disclosed in a filing with the Securities and Exchange Commission. Following the sale, Basso still owns a total of 39,434 shares in the company, which are directly held. The remaining shares represent Basso's continued investment in Coherent Corp.'s future.
Coherent Corp., known for its optical instruments and lenses, operates under the industrial classification of Optical Instruments & Lenses, with a focus on industrial applications and services. The company, incorporated in Pennsylvania, was formerly known as II-VI Incorporated until a name change in 1992.
Investors and the market often keep a close watch on insider transactions as they can provide insights into an executive's confidence in the company's prospects. However, such transactions can be motivated by a variety of personal financial considerations and do not necessarily indicate a change in company performance or strategy.
The details of the sale, including the specific number of shares sold at each price point, are available upon request from the SEC staff, Coherent Corp., or any security holder of the company. The sale was executed by Jeffrey W. Acre, Attorney-in-Fact, as indicated by the power of attorney granted earlier.
Coherent Corp.'s business address is located at 375 Saxonburg Blvd., Saxonburg, PA, and the company can be reached by phone at 724-352-4455.
In other recent news, Coherent Corp. has seen significant executive changes and financial developments. James R. Anderson, previously the CEO, was appointed as the new President, following the resignation of outgoing President, Walter R. Bashaw II. The company's fourth-quarter results exceeded expectations with a 9.1% year-over-year increase in revenue to $1.31 billion, surpassing the predicted $1.28 billion. The adjusted earnings per share stood at $0.61, slightly above the consensus forecast of $0.60.
Several analyst firms including Loop Capital, Craig-Hallum, Benchmark, Rosenblatt Securities, Morgan Stanley, and Citi have raised their price targets for Coherent, reflecting confidence in the company's growth trajectory. These revisions are due to the company's strong performance in the Datacom sector, particularly due to sales of AI transceivers, and the strategic approach of CEO Jim Anderson to enhance profitability and focus on high-growth segments.
Coherent is also making strategic moves to divest non-core and underperforming businesses, aiming to reduce debt and improve its balance sheet. The company anticipates revenue for the first quarter of fiscal 2025 to fall between $1.27 billion and $1.35 billion, with adjusted EPS projected to range from $0.53 to $0.69. These are among the recent developments shaping Coherent's trajectory.
InvestingPro Insights
Coherent Corp. (NASDAQ:COHR) has been the subject of investor attention following the insider sale by Ronald Basso. With an adjusted market capitalization of $11.95 billion and recent price movements, the company's stock dynamics offer a rich field for analysis. According to InvestingPro data, Coherent Corp. has experienced a significant return over the past week, with a 10.14% price total return, and an even more substantial gain over the last six months, at 32.71%. These figures underscore the company's recent strong performance in the stock market.
While Coherent Corp. is trading at a high EBITDA valuation multiple, with a P/E ratio of 56.98, it's important to note that analysts have revised their earnings downwards for the upcoming period. This suggests that while the company has seen high returns over the last year, with a 140.6% price total return, future earnings may not meet previous expectations. This is a critical consideration for investors monitoring the company's stock, especially in light of the recent insider sale.
An InvestingPro Tip to consider is that despite a revenue decline of 8.77% over the last twelve months as of Q1 2023, analysts predict the company will be profitable this year. This projection, coupled with the fact that the company's liquid assets exceed short-term obligations, may provide some reassurance to investors about the company's financial health and ability to meet its immediate financial commitments.
For those interested in a deeper dive into Coherent Corp.'s financials and stock performance, there are additional InvestingPro Tips available. As of now, there are 12 more tips listed on InvestingPro that can offer further insights into the company's valuation, profitability, and market position (https://www.investing.com/pro/COHR).
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