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James J. Kim, a member of the 10% owner group of Amkor Technology , Inc. (NASDAQ:AMKR), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Kim sold 869,565 shares of Amkor Technology’s common stock at a price of $21.85 per share. The total value of this transaction amounted to approximately $18.99 million. The sale comes as the stock trades near its 52-week low, with InvestingPro analysis suggesting the $5.46 billion semiconductor company is currently undervalued.
Following this transaction, Kim retains 71,828 shares of Amkor Technology directly. Additionally, he holds various indirect ownership interests, including 95,000 shares owned by his spouse and a substantial number of shares held in family trusts. Despite recent market volatility and a 32.73% decline over the past six months, InvestingPro data shows the company maintains strong fundamentals with 12+ exclusive insights available to subscribers.
This transaction was part of a distribution of shares to Sujoda Investments, LP, as part of an arrangement within the Kim family group. Kim has stated that he disclaims beneficial ownership of the securities held by other members of the group, except to the extent of his pecuniary interest. The stock currently trades at a P/E ratio of 15.25, reflecting its position as a prominent player in the Semiconductors & Semiconductor Equipment industry.
In other recent news, Amkor Technology reported fourth-quarter earnings that exceeded analyst expectations with an adjusted earnings per share of $0.43, surpassing the estimate of $0.38. However, the company faced challenges with revenue, which was $1.63 billion, slightly below the consensus estimate of $1.66 billion and reflecting a 7% decline year-over-year. The company’s guidance for the first quarter of 2025 fell short of expectations, forecasting earnings per share between $0.01 and $0.17, compared to the consensus of $0.31, and revenue between $1.225 billion and $1.325 billion, lower than the anticipated $1.464 billion.
KeyBanc revised Amkor’s stock price target from $34.00 to $27.00 while maintaining an Overweight rating, citing a cautious outlook for 2025 and challenges in the automotive and communications sectors. Meanwhile, DA Davidson maintained a Buy rating with a $36.00 target, expressing optimism about Amkor’s potential to recover lost business in the communications sector by the second half of 2025. UBS also adjusted its price target for Amkor to $27.65 from $32.50, maintaining a Neutral rating, and highlighted concerns about Amkor’s ambitious recovery targets and capital expenditure growth. Despite these challenges, Amkor achieved record revenue in its computing end market and successfully ramped up its Vietnam facility. The company also announced a 5% increase in the quarterly cash dividend and a special cash dividend, reflecting a strategic focus on shareholder returns amidst a challenging market environment.
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