Susan Ocampo, a director and ten percent owner of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), has recently sold a significant amount of the company's stock, transactions totaling over $24 million. The sales occurred over two days, with prices ranging from $105.34 to $110.29 per share.
On August 28, Ocampo sold shares at weighted average prices that varied throughout the day. The first batch of 37,830 shares sold at an average of $105.34, with sale prices ranging from $105.00 to $105.90. Another set of 7,332 shares went for an average of $106.39, with individual transactions priced between $106.18 and $106.90. The sales continued with 16,838 shares at an average of $107.41, within a range of $107.00 to $107.79, and 8,000 shares at an average price of $108.07, fluctuating from $108.00 to $108.21.
The following day, on August 29, Ocampo executed more sales, including 30,000 shares at an average price of $108.03, with a price range of $108.00 to $108.21. The selling proceeded with 69,537 shares at an average price of $109.62, where shares were sold at prices from $109.13 to $109.98, and a final transaction of 53,182 shares at an average price of $110.29, with sales prices ranging from $110.00 to $110.76.
It is important to note that the shares sold were held indirectly by the Ocampo Family Trust and by trusts for the benefit of Ocampo's children. The transactions were executed in multiple tranches at various prices, and Ocampo has committed to providing full details of the number of shares sold at each price upon request.
Investors and followers of MACOM Technology Solutions Holdings, Inc. will likely keep an eye on these transactions as part of their ongoing assessment of the company's stock performance and insider activity.
In other recent news, MACOM Technology Solutions Holdings Inc. reported a strong fiscal third quarter in 2024, with revenues rising to $190.5 million and an adjusted EPS of $0.66 per diluted share. The company witnessed a positive trend in bookings for the third consecutive quarter, with a book-to-bill ratio of 1.1:1. The Industrial and Defense market contributed $90.9 million to the revenue, while Telecom and Data Center markets accounted for $50.6 million and $49 million, respectively. MACOM's strategic focus on high-frequency, high-power, and high-data rate applications has led to significant adoptions in defense and opportunities in 5G and satellite communications.
MACOM's financial health remains solid, with over $40 million in free cash flow and a cash position of $521 million. The company's Q4 revenue is projected to be between $197 million and $203 million. Despite a decline in Telecom revenues from previous highs, MACOM expects low-single digit growth next year. The company also acknowledges volatility in the Data Center market but maintains good visibility and is securing backlog with customers.
CEO Steve Daly discussed the potential for doubling the business in 3 to 5 years, driven by the density of RF radios in 5G deployments. CFO Jack Kober provided insights on the company's ability to improve gross margins through operational activities and customer-focused strategies. These are among the recent developments in the company.
InvestingPro Insights
Amid the recent insider trading activity at MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), investors are keen to understand the company's financial health and market valuation. With Susan Ocampo's significant stock sales, the company's performance metrics and valuation multiples become even more pertinent for shareholders and potential investors.
InvestingPro data reveals that MACOM Technology Solutions has a market capitalization of $7.88 billion, reflecting its standing in the market. Despite the insider sales, the company's stock has demonstrated resilience with a strong return over the last month, appreciating by 13.8%. This performance is underscored by the company's P/E ratio, which currently stands at 109.33, indicating a high earnings multiple that suggests investors have high expectations for future earnings growth.
According to InvestingPro Tips, MACOM Technology Solutions is trading at a high revenue valuation multiple, which aligns with the company's revenue growth in the last quarter of 28.25%. Furthermore, analysts have revised their earnings upwards for the upcoming period, which could be a signal of potential future growth and profitability. Notably, MACOM Technology Solutions does not pay a dividend to shareholders, which may be a consideration for those investors seeking regular income from their investments. For a more comprehensive analysis, there are over 14 additional InvestingPro Tips available for MACOM Technology Solutions at https://www.investing.com/pro/MTSI, providing deeper insights into the company's financials and market performance.
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