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Mitchell B. Goldsteen, a director and significant shareholder of Shimmick Corp (NASDAQ:SHIM), has sold shares of the company as disclosed in a recent SEC filing. The transactions, executed under a pre-arranged Rule 10b5-1 sales plan, took place over three consecutive days. The sales come as SHIM trades near its 52-week low of $1.31, with the stock down about 47% year-to-date. According to InvestingPro analysis, the company currently shows signs of being undervalued.
On April 7, Goldsteen sold 4,100 shares at a weighted average price of $1.38 per share. The following day, an additional 1,000 shares were sold at the same average price. On April 9, he sold 4,675 shares at a weighted average price of $1.36 per share. The total value of these sales amounted to $13,396, with prices ranging from $1.36 to $1.38 per share. The company, with a market capitalization of $47.4 million, currently maintains a 'Weak' financial health score according to InvestingPro's comprehensive analysis, which includes over 30 key financial metrics and exclusive ProTips.
Following these transactions, Goldsteen, who holds the shares indirectly through GOHO, LLC, retains ownership of 21,531,975 shares. Investors seeking deeper insights into SHIM's valuation and financial metrics can access the detailed Pro Research Report, available exclusively on InvestingPro.
In other recent news, Shimmick Corporation reported a substantial earnings miss for Q4 2024, with earnings per share (EPS) at -0.91, significantly below the projected 0.11. The company's revenue also fell short, coming in at $104 million compared to the expected $173.7 million. Despite these results, Shimmick maintains a strong backlog of $822 million, indicating potential for future growth. Additionally, the company has secured a $15 million loan from an affiliate of Ansley Park Capital LLC to support project expenses and general corporate purposes. The loan agreement includes promissory notes with a maturity date of April 1, 2031, and an interest rate of 12.50% per annum. In leadership changes, Todd Yoder has been appointed as the new Executive Vice President and Chief Financial Officer, and Amanda Mobley has been named Chief Accounting Officer. The company forecasts a 10-15% revenue increase for 2025, aiming for a gross margin of 9-12%. Analysts from Roth Capital Partners (WA:CPAP) and Craig Hallum Capital have engaged with the company's management, discussing strategies for improving project margins and addressing financial performance challenges.
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