ACM Research, Inc. (NASDAQ:ACMR) has reported significant stock sales by a key executive, according to the latest filings. The transactions, which took place over several days, resulted in sales totaling over $23 million.
The executive, who is a director at ACM Research, sold shares at prices ranging from $21.13 to $26.01. On October 4th, the director sold 580,873 shares at an average price of $21.33 and another batch of 119,127 shares at an average price of $21.79. Following these transactions, the director sold additional shares on October 7th; 173,005 shares at an average price of $23.32, 101,018 shares at an average price of $25.35, and a smaller amount of 977 shares at an average price of $26.01. The last reported sale on October 8th involved 90,396 shares at an average price of $21.13.
These sales were conducted under a Rule 10b5-1 trading plan, which was adopted by Shanghai Science and Technology Venture Capital Co., Ltd. ("SSTVC") 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.
The director, an employee of an affiliate of SSTVC, has disclaimed beneficial ownership of the shares owned by SSTVC except to the extent of their pecuniary interest. This disclaimer indicates that the director does not claim to benefit from the stock owned by SSTVC beyond any personal financial interest they may have in the company.
Investors and followers of ACM Research will likely keep an eye on these transactions as they reflect significant movements in insider ownership. The company, which specializes in special industry machinery, has not made any additional comments regarding these sales at this time.
In other recent news, ACM Research has made significant strides in recent developments. The company reported a notable surge in revenue, with a 40% year-over-year increase to $202.5 million in the second quarter of 2024. Additionally, shipments rose by 32% to $203 million. As a result of this robust growth, ACM Research raised its 2024 revenue outlook to between $695 million and $735 million, while setting a long-term revenue target of $3 billion.
The company also secured orders for four advanced wafer-level packaging tools, two from a U.S.-based customer and two from a domestic research and development center. These orders are expected to support various advanced packaging processes and are anticipated to be delivered in the first half of 2025. This development demonstrates ACM Research's ongoing commitment to innovation and expansion in the U.S. market.
Roth/MKM, an independent financial firm, maintains a Buy rating for ACM Research, despite reducing its price target from $40 to $30. This adjustment is attributed to a broader reassessment of market valuations, but it does not undermine the firm's confidence in ACM Research's growth prospects. These recent developments reflect ACM Research's strong financial performance and ambitious growth trajectory.
InvestingPro Insights
The recent stock sales by a key executive at ACM Research (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 39.78% return over the last month, contrasting with a 26.73% decline 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 financial health appears robust. The company boasts a market capitalization of $1.37 billion and has demonstrated impressive revenue growth, with a 50.42% increase in the last twelve months as of Q2 2024. This growth is reflected in the company's strong operating performance, with an operating income margin of 17.21% for the same period.
InvestingPro Tips also highlight that ACMR "holds more cash than debt on its balance sheet" and that "liquid assets exceed short term obligations," suggesting a solid financial foundation. Additionally, the company is "trading at a low P/E ratio relative to near-term earnings growth," with a P/E ratio of 15.5 and a PEG ratio of 0.67, indicating potential undervaluation relative to its growth prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for ACMR, providing deeper insights into the company's financial position and market performance.
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