Atomera Inc (NASDAQ:ATOM) Chief Technology Officer Robert J. Mears has recently sold a total of $15,415 worth of company stock, according to the latest SEC filings. The transactions, which occurred on June 3rd and 4th, 2024, were executed at prices ranging from $4.04 to $4.13 per share.
The sales were made to cover tax withholding obligations connected with the vesting of restricted stock grants, as indicated in the footnotes of the SEC filing. Specifically, these were "sell to cover" transactions, a common practice where employees sell a portion of their vested shares to pay for the associated taxes.
On June 3rd, Mears sold shares in several separate transactions, all at a price of $4.13 per share. The amounts sold were 181, 376, 758, and 874 shares in each respective transaction. Following these sales, he still retained a significant amount of Atomera stock, with the filings showing that he held 136,541 shares after the last transaction on that day.
An additional sale took place on June 4th, where Mears sold 1,578 shares at a slightly lower price of $4.04 per share. This transaction was part of a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of nonpublic information.
The SEC filing also disclosed that Mears' spouse indirectly owns 2,666 shares of Atomera Inc common stock, further contributing to the total holdings associated with Mears.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's current valuation and future prospects. However, it's important to note that these transactions do not necessarily indicate a lack of confidence in the company; in this case, the sales were primarily for tax purposes.
Atomera Inc specializes in semiconductor materials and licensing of associated technologies, a field where Mears, as CTO, plays a key role in guiding the company's technical direction and innovation.
In other recent news, Atomera Incorporated reported a net loss of $4.8 million for Q1 2024, with revenues of $18,000, but anticipates Q2 2024 revenues of around $50,000. Despite the financial setback, Atomera is witnessing increased customer interest and is making headway with its Mears Silicon Technology (MST). The company's collaboration with STMicroelectronics remains a key focus, with revenue from this deal expected to total around $3 million.
Moreover, Atomera is actively exploring opportunities in the rapidly growing GaN market and RF SOI market. A significant development is the signing of a one-year simulation model license by a large customer, hinting at potential expansion. In the backdrop of these developments, Atomera maintains a healthy cash balance of $19.3 million.
Analysts from various firms have noted Atomera's strategic patience in customer conversion to production. However, they've also highlighted the delay in decision-making on a Joint Development Agreement by a partner, despite meeting specifications. These are some of the recent developments concerning Atomera.
InvestingPro Insights
Amid the news of Atomera Inc's (NASDAQ:ATOM) Chief Technology Officer Robert J. Mears selling company stock, investors are taking a closer look at the company's financial metrics and market performance. According to InvestingPro, Atomera's market capitalization stands at a modest $108.09 million, reflecting the size and scale of the company within the semiconductor industry. Despite the recent insider sales, InvestingPro Tips suggest that Atomera holds more cash than debt on its balance sheet and analysts anticipate sales growth in the current year, which could signal a positive outlook for the company's financial health.
The company's impressive gross profit margin, which InvestingPro data lists at 89.26% for the last twelve months as of Q1 2024, points to a strong ability to control costs relative to revenue—a key indicator of operational efficiency. However, it's noteworthy that the company is not expected to be profitable this year, and the stock has experienced significant price declines over the past week, three months, and year, with a one-year total return of -53.05% as of the latest data.
For investors seeking a deeper analysis, InvestingPro offers additional insights, including 12 more InvestingPro Tips that can be accessed through their platform. These tips provide valuable information that could help in making informed investment decisions. To explore these tips and gain comprehensive investment analysis, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the insider transactions reported may not necessarily signal a lack of confidence in Atomera, the broader financial data and market performance metrics provided by InvestingPro offer a more comprehensive picture for investors to consider as they assess the company's potential.
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