Atomera CEO sells over $13k in company stock

Atomera Inc (NASDAQ:ATOM) CEO and President Scott A. Bibaud has recently sold shares of the company's common stock, according to a new SEC filing. The executive disposed of a total of 5,377 shares at a price of $2.58 per share, resulting in a transaction value of approximately $13,872.

The sales took place on September 3, 2024, and are part of a "sell to cover" transaction to satisfy mandatory non-discretionary tax withholding obligations related to the vesting of restricted stock grants. This type of sale is common for executives to cover tax liabilities that arise when restricted stock vests.

Following the sales, Bibaud still owns a substantial number of Atomera shares. Post-transaction, the filings indicate that he retains ownership of 338,506 shares of the semiconductor company's stock. This level of ownership suggests that despite the recent sale, Bibaud remains significantly invested in the company's future.

Investors often monitor the buying and selling activities of company insiders like CEOs for insights into their perspective on the company's current valuation and future prospects. Atomera Inc, incorporated in Delaware and headquartered in Los Gatos, California, operates in the semiconductors and related devices industry, which is known for its rapid innovation and growth potential.

The transactions were executed as part of the company's pre-planned tax obligation strategy and were reported in compliance with SEC regulations. The details of the transaction were made public through the SEC's Form 4 filing, which records changes in company ownership by directors, officers, and any beneficial owners holding more than 10% of a company's stock.

The sale by Atomera's CEO comes as investors continue to watch the semiconductor sector closely, given its critical role in the global technology supply chain. Atomera Inc has not made any official statement regarding the transaction.

In other recent news, Atomera Incorporated has reported significant progress across various sectors during its Second Quarter Fiscal Year 2024 earnings call. The semiconductor company witnessed an improvement in its financial performance with a GAAP net loss of $4.4 million, down from a $5.2 million loss in the same quarter of the previous year. Additionally, the company's revenues increased to $72,000 in Q2 2024, up from zero in Q2 2023.

Atomera is advancing in smart power products with STMicroelectronics and collaborating with Soitec on thin RF-SOI wafers, activities expected to facilitate the adoption of MST technology. The company is also exploring opportunities in memory technology, advanced node markets, and GaN technology.

Notably, Atomera submitted its first proposal under the CHIPS and Science Act, anticipating increased interest in funding opportunities. The company's engagement with STMicroelectronics is expected to be a significant contributor to its revenue in the coming year. However, Atomera continues to operate at a net loss, albeit a decreasing one, and its revenue figures remain modest within the semiconductor industry. Despite these challenges, the company is optimistic about its future growth.

InvestingPro Insights

In light of the recent share sale by Atomera Inc's CEO, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Atomera's market capitalization stands at $72.85 million. Despite an impressive gross profit margin of 78.91% for the last twelve months as of Q2 2024, the company is not currently profitable, with an operating income margin of -3095.94% and a negative return on assets of -73.94%.

InvestingPro Tips suggest that Atomera holds more cash than debt on its balance sheet, which could provide some financial stability. However, the company is also noted for quickly burning through cash, which is a crucial consideration for investors looking at the company's long-term viability. Additionally, the stock price has been quite volatile, with a 1-month price total return of -15.26% and a significant drop of -61.45% over the last six months.

Investors considering Atomera's future prospects should note that analysts do not anticipate the company will be profitable this year. The company's stock has also fared poorly over the last month and has fallen significantly over the last year, which could be a point of concern for potential investors. For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available at https://www.investing.com/pro/ATOM, which could provide further insights into Atomera's financial health and market standing.

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