Insiders at ACM Research, Inc. (NASDAQ:ACMR) have recently sold a significant amount of shares in the company, transactions that were reported in a recent filing. The sales, which occurred on October 1 and 2, 2024, totaled over $693,920 and were executed within the price range of $20.01 to $20.19 per share.
On the first day of October, a total of 8,304 shares were sold at a weighted average price of $20.19, with individual transactions ranging from $20.00 to $20.28. The following day saw a larger sale, with 26,300 shares sold at a weighted average price of $20.01, and transactions varying between $20.00 and $20.17 per share.
These sales were made pursuant to a Rule 10b5-1 trading plan, which was adopted on June 12, 2024. The plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, thus providing a defense against accusations of insider trading.
The insiders involved in these transactions are associated with Shanghai Pudong Science & Technology Investment Group Co., Ltd., and Shanghai Science & Technology Venture Capital (Group) Co., Ltd. Both entities are reported to be possible members of a 10% ownership group in ACM Research, suggesting a significant stake in the company.
Following these transactions, the remaining shares owned by the insiders reflect a sizable interest in ACM Research. The reporting documents also clarify that for purposes of Section 16 of the Securities Exchange Act of 1934, the reporting persons disclaim beneficial ownership of the securities except to the extent of their indirect pecuniary interest.
Investors and followers of ACM Research will likely keep a close watch on insider transaction trends as they can provide valuable insights into the company's performance and insider perspectives on the stock's value.
In other recent news, ACM Research has been making significant strides in the semiconductor industry. The company has secured orders for four advanced wafer-level packaging tools, with two orders coming from a U.S. based customer and two from a domestic research and development center. These tools, expected to be delivered in the first half of 2025, will support various advanced packaging processes and reflect ACM Research's commitment to innovation and its expanding presence in the U.S. market.
In financial developments, ACM Research reported a 40% year-over-year increase in revenue to $202.5 million in the second quarter of 2024, with shipments rising by 32% to $203 million. The company also raised its 2024 revenue outlook to between $695 million and $735 million, setting a long-term revenue target of $3 billion.
Despite a recent adjustment by Roth/MKM, reducing its price target for ACM Research to $30 from the previous $40, the firm maintains a Buy rating on the stock. This reassessment does not diminish the firm's confidence in ACM Research's growth prospects. These are all recent developments showcasing the company's strong financial performance and ambitious growth trajectory.
InvestingPro Insights
The recent insider sales at ACM Research, Inc. (NASDAQ:ACMR) come against a backdrop of mixed financial indicators and market performance. According to InvestingPro data, ACMR's stock has shown significant volatility, with a strong return of 14.75% over the last month, but a substantial decline of 38.26% over the past six months. This volatility aligns with one of the InvestingPro Tips, which notes that "stock price movements are quite volatile" for ACMR.
Despite the recent insider sales, ACMR's financials present some positive aspects. The company's revenue growth is robust, with a 50.42% increase in the last twelve months as of Q2 2024. Additionally, ACMR boasts a healthy gross profit margin of 49.53% for the same period. These strong fundamentals are reflected in another InvestingPro Tip, which indicates that ACMR is "trading at a low P/E ratio relative to near-term earnings growth," with a current P/E ratio of 13.55.
It's worth noting that while insiders are selling, ACMR "holds more cash than debt on its balance sheet," according to an InvestingPro Tip. This financial stability could provide some reassurance to investors concerned about the recent insider transactions.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for ACMR, providing deeper insights into the company's financial health and market position.
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