FREMONT, CA – In a recent transaction, Xing Xiao, a director at ACM Research, Inc. (NASDAQ:ACMR), sold a significant amount of company stock, according to the latest SEC filings. The sales, which took place on October 1st and 2nd, amounted to a total value of approximately $693,920.
The transactions involved the sale of 8,304 shares on the first day at an average price of $20.19 per share, and 26,300 shares on the following day at an average price of $20.01 per share. The shares were sold in multiple transactions with prices ranging from $20.00 to $20.28 on the first day and from $20.00 to $20.17 on the second day, as indicated by the weighted average prices reported.
The SEC filing noted that the sales were carried out pursuant to a Rule 10b5-1 trading plan adopted by Shanghai Science and Technology Venture Capital Co., Ltd. ("SSTVC") on June 12, 2024. It is important to note that these shares are owned by SSTVC, and Xing Xiao is an employee of an affiliate of SSTVC. Xiao has disclaimed beneficial ownership of the shares owned by SSTVC except to the extent of any pecuniary interest therein.
Following the sales, it was reported that the director still owned a substantial number of ACM Research shares, amounting to 3,403,906 shares after the transactions were completed.
ACM Research, Inc. specializes in providing wafer processing solutions to semiconductor manufacturers, and its stock is publicly traded on the NASDAQ exchange under the ticker symbol ACMR. The company is headquartered in Fremont, California, and is known for its contributions to the special industry machinery sector.
Investors and market watchers often pay close attention to insider sales as they may provide insights into an executive's perspective on the company's current valuation and future prospects. However, such transactions are not necessarily indicative of a change in company fundamentals or future performance.
For those interested in the detailed figures and additional information regarding the stock sales, the SEC filing is publicly available and provides a comprehensive account of the transactions.
In other recent news, semiconductor manufacturer ACM Research has reported significant developments. The company's Q2 2024 revenue and earnings per share exceeded market expectations, bolstered by a 40% year-over-year surge in revenue to $202.5 million and a 32% increase in shipments to $203 million. In light of these results, ACM Research has raised its 2024 revenue outlook to between $695 million and $735 million, setting a long-term revenue target of $3 billion.
Roth/MKM, while reducing its price target for ACM Research to $30 from $40, maintains a Buy rating on the stock. This adjustment is seen as a broader reassessment of market valuations but does not affect the firm's confidence in ACM Research's growth prospects.
ACM Research also announced the receipt of orders for four wafer-level packaging tools, two from a U.S.-based customer and two from a domestic research and development center, demonstrating its growing presence in the U.S. market. These tools, expected to be delivered in the first half of 2025, will support various advanced packaging processes.
These are recent developments that underscore the company's strong financial performance and ambitious growth trajectory. The company's successful penetration of markets beyond its traditional Chinese customer base, along with new products, contribute to this broader appeal.
InvestingPro Insights
To provide additional context to the recent insider sales at ACM Research, Inc. (NASDAQ:ACMR), let's examine some key financial metrics and insights from InvestingPro.
ACM Research's stock has shown significant volatility, with a strong return of 14.4% over the last month, despite taking a substantial hit of -38.77% over the past six months. This volatility aligns with an InvestingPro Tip indicating that ACMR's stock price movements are quite volatile, which could explain the timing of the insider sales.
The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $1.18 billion and a P/E ratio of 13.55. This relatively low P/E ratio, combined with an InvestingPro Tip suggesting that ACMR is trading at a low P/E ratio relative to near-term earnings growth, may indicate that the stock is potentially undervalued despite the recent insider sales.
Furthermore, ACM Research's revenue growth is impressive, with InvestingPro Data reporting a 50.42% increase in the last twelve months as of Q2 2024. This strong growth trajectory supports another InvestingPro Tip stating that analysts predict the company will be profitable this year.
It's worth noting that InvestingPro offers 11 additional tips for ACMR, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects. These insights can be particularly valuable when considering the implications of insider transactions such as those recently executed by director Xing Xiao.
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