Director of Key Tronic Corp (NASDAQ:KTCC), Cheryl Beranek, has purchased shares worth $9,166 in the company, according to a recent SEC filing. The transaction involved the acquisition of 2,000 shares of common stock at a price of $4.583 per share.
This recent purchase by Beranek highlights a vote of confidence in the electronics manufacturing services company, with the director increasing her stake in the firm's common stock. Investors often view such insider transactions as a sign of the leadership's belief in the company's future prospects.
Key Tronic, headquartered in Spokane, Washington, specializes in printed circuit boards and other electronic manufacturing services. The company has a history of providing integrated electronic manufacturing services to its clients, ranging from product design to distribution and order fulfillment.
The SEC filing also mentioned the awarding of restricted stock units (RSUs) to Beranek, totaling 8,869 units. These RSUs represent a contingent right to receive shares of common stock and are set to vest on September 3, 2025, subject to time-based vesting conditions as outlined in the footnotes of the document.
The recent transactions by Beranek come as part of regular disclosures that corporate insiders must make regarding their dealings in company stock. These filings provide transparency and can offer insights into the actions of company executives and directors with respect to their own holdings in the company.
For investors following Key Tronic, such insider activity can serve as an additional data point when analyzing the company's stock performance and future outlook.
In other recent news, Keytronic Corporation reported a decrease in total revenue to $126.7 million in its fourth-quarter fiscal year 2024 results, down from $162.6 million in the same quarter of the previous year. This decline was due to a cybersecurity incident that resulted in $15 million of unfulfilled revenue. Despite this, the company improved its gross margin to 9% and operating margin to 2.2%, with a break-even net income for the quarter and a net loss of $800,000 for the full year. For fiscal year 2025, Keytronic anticipates fulfilling most of the delayed orders and projects revenue in the range of $140 million to $150 million for the first quarter. The company plans to focus on growth opportunities in onshoring and near-shoring, as well as efficiency improvements, aiming to maintain a strong gross margin in the upcoming fiscal year. These are the recent developments that investors should be aware of.
InvestingPro Insights
Following the recent insider purchase by Director Cheryl Beranek, Key Tronic Corp (NASDAQ:KTCC) presents a mixed financial landscape. One InvestingPro Tip highlights that the company is trading at a low Price / Book multiple of 0.38, suggesting that the stock might be undervalued relative to the company's net asset value as of the last twelve months ending Q4 2024. This could partly explain Beranek's decision to increase her stake, seeing potential value in the company's stock.
On the other hand, Key Tronic's financial performance has shown some challenges. The company has not been profitable over the last twelve months, with a negative P/E Ratio of -64.79. Additionally, the firm's gross profit margins are considered weak, standing at 7.51%, which may raise concerns about its operational efficiency and cost management strategies.
From a valuation standpoint, the company's market capitalization stands at $49.01M, and it does not pay a dividend, which could be a factor for income-focused investors to consider. However, for those looking at growth potential, Key Tronic's stock price movements have been quite volatile, with a 1 Month Price Total Return of 11.88%, indicating the possibility of significant short-term gains for opportunistic investors.
For a more comprehensive analysis, InvestingPro offers additional tips on Key Tronic, which can be accessed through the platform. There are 5 more InvestingPro Tips available for KTCC that could provide further insights into the company's financial health and investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.