Nina Richardson, a director at Cohu Inc. (NASDAQ:COHU), recently sold 4,999 shares of the company's common stock. The transaction took place on October 10, with shares sold at a weighted average price of $24.14, resulting in a total sale value of $120,675. Following this transaction, Richardson holds 28,313 shares, which includes 4,918 Restricted Stock Units (RSUs) and 11,992 Deferred Stock Units (DSUs). The RSUs and DSUs are set to vest or be settled under specific conditions related to her service as a director.
In other recent news, semiconductor testing company, Cohu, has secured a significant order from a top automotive semiconductor manufacturer for its Diamondx platform. The order includes an integrated test cell solution featuring the new VI100 instrument and enhancements to its mixed signal platform. This development represents Cohu's continued penetration into the semiconductor testing market.
Also, Cohu reported Q2 revenues of nearly $105 million and opened a new engineering design center for test instrumentation. The company is expecting Q3 revenue to be around $95 million with a gross margin of approximately 45%. Despite declines in the automotive and industrial markets, Cohu won a significant customer benchmark award, projecting about $100 million over five years.
In the midst of current market challenges, analysts have noted signs of strengthening demand in the computing and mobile markets. Cohu has also qualified two new customers for its Krypton product in the automotive and aerospace sectors. These recent developments indicate Cohu's strategic focus on expanding its customer base and product offerings, with the industrial market expected to pick up in Q1 2025. However, the timing for the recovery of the automotive market, Cohu's largest segment, remains uncertain.
InvestingPro Insights
The recent insider sale by Nina Richardson comes at a time when Cohu Inc. (NASDAQ:COHU) faces several challenges, as highlighted by InvestingPro data and tips. The company's stock has experienced significant volatility, with a 24.91% price decline over the past three months. This downward trend aligns with the broader market sentiment, as seven analysts have revised their earnings expectations downwards for the upcoming period.
InvestingPro data reveals that Cohu's revenue for the last twelve months as of Q2 2024 stands at $500.35 million, with a concerning revenue growth decline of 32.94% over the same period. This negative growth trajectory is further emphasized by an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
Despite these headwinds, Cohu maintains a strong balance sheet, with an InvestingPro Tip noting that the company holds more cash than debt. This financial stability could provide some reassurance to investors amidst the current challenging environment.
For readers seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Cohu, providing a deeper understanding of the company's financial health and market position.
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