EU and US could reach trade deal this weekend - Reuters
In a recent transaction, Guillaume Marie Jean Rutten, the President and CEO of Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), sold shares of the company's common stock. The executive sold 25,000 shares at an average price of $32.56, totaling approximately $814,000. This sale occurred on August 15, 2024, and was made public through a Form 4 filing with the Securities and Exchange Commission.
On the same day, Rutten also acquired 15,000 shares of Amkor Technology at a price of $14.17 per share, totaling $212,550. This transaction was part of an options exercise, where the CEO converted his right to buy the company's stock at a predetermined price.
The sales were conducted under a Rule 10b5-1 trading plan, which Rutten had adopted on November 8, 2023. Such plans allow company insiders to establish pre-arranged plans to sell stocks at a predetermined time to avoid accusations of insider trading. The prices at which the shares were sold ranged from $32.16 to $32.82, with the reported price representing a weighted average.
The CEO's actions resulted in a net decrease in his direct ownership of Amkor Technology's common stock, which following these transactions stood at 224,971 shares. It is also noted that the options exercised by Rutten were part of a grant of 375,000 shares of common stock, which was fully vested by July 30, 2023, after being granted on July 30, 2020.
Amkor Technology, headquartered in Tempe, Arizona, is a leading provider of semiconductor packaging and test services. Investors and the market often closely watch the buying and selling activities of company insiders like CEOs, as these transactions can provide insights into their perspective on the company's future performance.
In other recent news, Amkor Technology has been generating attention with its latest financial results and future plans. The company's second-quarter earnings surpassed consensus estimates, with revenues reaching $1.46 billion and earnings per share at $0.27. This performance marked a 7% sequential increase in revenue, primarily attributed to the demand for advanced packaging used in premium smartphones and AI solutions.
However, Amkor Technology's third-quarter guidance slightly fell below analyst expectations, due to a misestimation of the company's gross margins and a delay in its 2.5D technology ramp-up. Despite these challenges, the firm remains optimistic about its full-year revenue from 2.5D technology, expecting it to quadruple year-over-year.
Needham has responded to these developments by raising the price target for Amkor Technology from $40 to $45 while maintaining a Buy rating. In addition, the company revealed plans to expand its 2.5D capacity in 2025 and increase the production of high-end smartphones, laptops, and wearable devices significantly in the second half of 2024. These are the recent developments that investors should be aware of.
InvestingPro Insights
Amkor Technology's recent insider trading activity coincides with a period where the company is navigating through a challenging market environment. According to InvestingPro data, Amkor's market capitalization stands at $8.15 billion, with a price-to-earnings (P/E) ratio of 21.58, reflecting the market's valuation of the company's earnings. This is slightly adjusted upwards from the last twelve months as of Q2 2024, where the P/E ratio was 21.67. Despite some negative revenue growth of -7.5% over the last twelve months, the company has managed to maintain a gross profit margin of 15.25%, which, while not robust, indicates some level of profitability in its operations.
InvestingPro Tips suggest that Amkor has been a prominent player in the Semiconductors & Semiconductor Equipment industry, yet it suffers from weak gross profit margins. This could be a factor for investors to consider when assessing the company's financial health in the context of the CEO's recent stock transactions. In addition, the company's stock has experienced significant volatility, with a 1-month price total return of -18.13%, which may have influenced the CEO's decision to engage in the recent transactions.
For investors looking for a more comprehensive analysis, InvestingPro offers additional insights, including 10 more InvestingPro Tips for Amkor Technology, which can be accessed at https://www.investing.com/pro/AMKR. These tips could provide a deeper understanding of the company's financial position and future prospects, helping investors make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.