Amkor technology executive sells over $150k in company stock

In a recent transaction, Kevin Engel, Executive Vice President of Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), sold 4,720 shares of company stock, totaling approximately $154,060. The shares were sold at an average price of $32.64 on August 14, 2024. This sale left Engel with zero shares in the company, indicating a complete divestment of his position on that date.

The transaction was reported alongside other stock activity by Engel, including the vesting of 8,260 shares of Amkor Technology 's common stock on August 13, 2024. These shares were granted as performance-vested restricted stock units (PSUs) under the company's 2021 Equity Incentive Plan. The vesting of these shares was based on the achievement of internal performance goals related to Amkor's geographic expansion and capacity enhancement for high-growth end markets.

Additionally, Engel had 3,540 shares of common stock withheld by Amkor Technology to satisfy tax withholding obligations related to the PSU vesting. These shares were valued at $32.16 each, amounting to a total transaction value of $113,846. The company handled the tax payment on Engel's behalf.

Investors and market watchers often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. Amkor Technology, a leader in semiconductors and related devices, has not provided any additional comments on these transactions.

In other recent news, Amkor Technology reported a strong second-quarter performance that surpassed consensus estimates, with revenues reaching $1.46 billion and earnings per share at $0.27. This success was mainly driven by the demand for advanced packaging used in premium smartphones and AI solutions. However, the company's third-quarter guidance was slightly below analyst expectations due to a delay in its 2.5D technology ramp-up and weaker than anticipated recovery in the automotive and industrial sectors.

Needham has raised the price target for Amkor Technology to $45 from the previous target of $40, maintaining a Buy rating on the stock. Despite the challenges, Amkor Technology remains optimistic about its full-year revenue from 2.5D technology, projecting it to quadruple year-over-year. The company has also announced plans to expand its 2.5D capacity in 2025.

Recent developments include the production of high-end smartphones, laptops, and wearable devices, expected to increase significantly in the second half of 2024. Amkor also anticipates a third-quarter revenue of $1.835 billion, driven by new product launches and strong demand in various segments. The company plans to capitalize on industry trends and expand its geographic presence, despite flat expectations for the automotive and industrial markets.

InvestingPro Insights

Following the recent insider transaction involving Kevin Engel, Executive Vice President of Amkor Technology, Inc. (NASDAQ:AMKR), investors may find additional context in the company's financial health and market performance. Amkor Technology, recognized as a prominent player in the Semiconductors & Semiconductor Equipment industry, has a market capitalization of approximately $8.1 billion. This valuation comes with a Price-to-Earnings (P/E) ratio of 21.46, which has remained relatively stable with an adjusted P/E of 21.54 over the last twelve months as of Q2 2024.

Despite achieving profitability over the past year, Amkor's revenue has seen a decline of 7.5% during the same period. The company's gross profit margin stands at 15.25%, which aligns with the InvestingPro Tip indicating the company suffers from weak gross profit margins. This could be a factor for the five analysts who have revised their earnings downwards for the upcoming period. However, the company has upheld a tradition of rewarding shareholders, having raised its dividend for 4 consecutive years, with a current dividend yield of 0.99%.

InvestingPro Tips also highlight that Amkor operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a stable financial position. The company's stock has experienced volatility, reflected in a one-month price total return of -25.86%, yet the one-year price total return is notably positive at 24.92%. Investors may also consider the fair value estimates, with InvestingPro's fair value pegged at $37.48, while analysts target a higher fair value of $43.5.

For those seeking further insights, there are 11 additional InvestingPro Tips available, which can provide a deeper understanding of Amkor Technology's performance and potential investment opportunities. These tips can be accessed at InvestingPro.

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