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Mitchell B. Goldsteen, a director and significant shareholder of Shimmick Corp (NASDAQ:SHIM), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. The transactions, executed through a Rule 10b5-1 sales plan, occurred over three consecutive days starting March 17, 2025. The timing is notable as SHIM’s stock has declined significantly, falling about 73% over the past year and trading well below its 52-week high of $7.05.
Goldsteen sold a total of 2,500 shares of Shimmick Corp common stock at an average price of $1.70 per share, amounting to approximately $4,250. The sales were conducted indirectly through GOHO, LLC, where Goldsteen serves as the sole managing member. Following these transactions, Goldsteen holds 21,566,150 shares of Shimmick Corp. According to InvestingPro data, the company faces challenges with rapid cash burn and weak gross profit margins of -11.6%. InvestingPro analysis indicates the stock is currently undervalued.
The sales were part of a pre-arranged trading plan, which allows insiders to sell a predetermined number of shares at specified times. Such plans are often used to avoid potential accusations of insider trading. The company’s market capitalization currently stands at $58.1 million, with analysts setting price targets between $2.50 and $3.00 per share.
In other recent news, Shimmick Corp reported a significant earnings miss for Q4 2024, with an EPS of -0.91 compared to the forecasted 0.11. Revenue also fell short at $104 million, missing the expected $173.7 million. The company’s net loss for the quarter increased to $38 million, up from a $17 million loss in the same period last year. Despite these challenges, Shimmick maintains a strong backlog of $822 million and forecasts a 10-15% revenue increase in 2025, aiming for a gross margin of 9-12%. CEO Yirael Yal expressed confidence in the company’s future, citing strategic initiatives focused on expanding electrical infrastructure and improving project margins. Analysts from Roth Capital Partners (WA:CPAP) and Craig Hallum Capital have engaged with the company, discussing the potential for improved project margins and the impact of federal budget uncertainties. Shimmick is also focusing on expanding its presence in key markets such as water resources and sustainable transportation.
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