BROOKFIELD, Conn.—Lee Kang Jyh, the Chief Executive Officer of Photronics Inc. (NASDAQ:PLAB), sold a significant portion of his holdings in the company earlier this month. According to a recent SEC filing, Mr. Lee sold a total of 17,500 shares of common stock over two transactions on January 2, 2025. The shares were sold at prices ranging from $24.00 to $24.20, amounting to a total transaction value of approximately $421,750. InvestingPro analysis shows the stock trading at an attractive P/E ratio of 11.6, with analysts setting a price target of $35.
Following these sales, Mr. Lee's direct ownership in Photronics stands at 510,850 shares. Additionally, on January 3, 2025, Mr. Lee acquired 80,000 shares as part of a restricted stock award, which will vest over four years. This acquisition was reported at no cost, as is typical for such awards. The company maintains exceptional financial health, with a current ratio of 5.07 and minimal debt relative to equity.
Photronics Inc., headquartered in Brookfield, Connecticut, is a key player in the semiconductor industry, specializing in photomask technology. These recent transactions provide insight into the executive's current stake in the company, which remains substantial despite the recent sales. With a market capitalization of $1.56 billion and strong financial metrics, detailed analysis available through InvestingPro's comprehensive research report reveals additional valuable insights about the company's position in the semiconductor sector.
In other recent news, Photronics Inc. has announced the expansion of its board with the appointment of David Garcia, a seasoned legal expert with experience in mergers and acquisitions. This move is expected to enhance Photronics' strategic guidance in exploring business development opportunities. Photronics' third-quarter earnings for 2024 revealed an EPS of $0.51, slightly below the anticipated $0.52, with a revenue of $211 million. Despite this minor miss, the company's financial stability was underscored by robust cash reserves and a low debt profile. Photronics has also expanded its share repurchase program to $100 million.
In more recent developments, DA Davidson has raised its target for Photronics to $35, maintaining a long-term bullish perspective on the company's prospects despite acknowledging near-term challenges. Photronics' Q4 revenue guidance stands at $213-$221 million and a non-GAAP EPS range of $0.51-$0.54. The company is keen on expanding its IC capacity and exploring strategic expansion options in the U.S., Europe, and Asia.
Photronics' financial health score stands at an impressive 3.59 out of 5, according to InvestingPro analysis, indicating robust operational strength. The company holds more cash than debt on its balance sheet, positioning it well to navigate market uncertainties. Despite potential challenges, Photronics remains optimistic about its strategic direction and long-term market outlook.
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