QuickLogic (NASDAQ:QUIK) Corporation's (NASDAQ:QUIK) CEO, Brian C. Faith, recently sold 17,116 shares of the company's common stock, resulting in a total transaction value exceeding $140,000. This sale took place on August 28, 2024, as reported in the latest filings with the Securities and Exchange Commission.
The transactions were executed at a weighted average price of $8.2286 per share, with individual sales occurring within a price range of $8.14 to $8.53. Following the sale, Faith still holds a significant stake in the company, with 198,733 shares remaining under his ownership.
The sale was made to address a shortfall in tax withholding obligations due to a miscalculation by the issuer in previous years. As noted in the footnotes of the filing, the insufficient number of shares was withheld to cover the tax liability owed by Faith. To rectify this issue, shares were sold, and the CEO's percentage ownership is expected to remain relatively constant due to the vesting of additional shares and a one-time grant of restricted stock units that vested recently.
Investors and followers of QuickLogic will note that the CEO's recent transaction does not significantly alter his investment position in the company, suggesting a continued alignment with the interests of shareholders. Faith's actions are part of standard financial practices to manage tax obligations related to stock compensation.
For those interested in the detailed transactions or the specific prices at which the shares were sold, the reporting person has agreed to provide full information upon request to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
QuickLogic Corporation, headquartered in San Jose, California, specializes in semiconductors and related devices, playing a significant role in the tech manufacturing industry.
In other recent news, QuickLogic Corporation reported its Q2 fiscal 2024 earnings, revealing a 41% year-over-year increase in revenue, yet a 31% sequential decline from Q1. Despite the challenges, the company has adjusted its full-year growth projection to 15%, attributing the change to scheduling push-outs, but assuring no contracts were lost to competitors. QuickLogic is also expecting a sharp revenue rebound in Q4 and accelerated growth thereafter.
The company is actively expanding its product lines and partnerships, targeting various sectors including defense, industrial, and consumer electronics. Among these recent developments, QuickLogic announced significant partnerships and distribution agreements, and is set to achieve record revenue in 2024 with its subsidiary, SensiML, and its new Open-Source strategy.
Analysts noted that QuickLogic plans to be cash-flow positive with double-digit earnings for fiscal 2024, with further acceleration of growth and profitability expected in late 2025. Despite experiencing revenue pushouts due to funding delays from customers in aerospace, defense, and industrial sectors, QuickLogic maintains a unique market position with its integration of open-source components into their eFPGA IP. The company's collaboration with YorChip on the development of an FPGA Chiplet, expected to release in the second half of 2025, signifies potential future growth.
InvestingPro Insights
As QuickLogic Corporation (NASDAQ:QUIK) navigates through the financial year, recent data from InvestingPro provides a snapshot of the company's current market position. Despite the CEO's share sale, QuickLogic's net income is expected to grow this year, indicating potential for future financial health. However, it's important to note that analysts have revised their earnings downwards for the upcoming period, suggesting that investors should keep a close watch on the company's performance.
InvestingPro Data highlights several key metrics for QuickLogic as of Q2 2024. The company's market capitalization stands at $117.89 million, with a high Price-to-Earnings (P/E) ratio of 64.53, reflecting a premium on its earnings. This high earnings multiple is further emphasized by an adjusted P/E ratio of 69.42. Additionally, QuickLogic has demonstrated strong revenue growth in the last twelve months, with a notable increase of 66.32%. However, this growth is coupled with significant price volatility, as evidenced by the stock's price having fallen by over 38% in the last three months.
In terms of valuation multiples, QuickLogic is trading at a high EBITDA valuation multiple, which may raise questions about the sustainability of its current stock price. The company's gross profit margin remains robust at nearly 70%, and the EBITDA growth has been impressive at 188.28% over the last twelve months. Despite these strong profitability indicators, the stock's price movements have been quite volatile, with a substantial hit over the last six months.
For investors seeking additional insights, there are 14 more InvestingPro Tips available, which can provide deeper analysis into QuickLogic's financial health and stock performance. These tips offer valuable information that could help investors make more informed decisions, especially in light of the CEO's recent stock sale and the company's current financial metrics.
QuickLogic's next earnings date is scheduled for November 12, 2024, which will be a critical time for investors to assess the company's progress and outlook. With the InvestingPro Fair Value estimated at $8.58, closely aligned with the recent closing price, investors may wish to explore the additional tips on InvestingPro to gauge the stock's potential trajectory.
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