Tina Donikowski, a director at Advanced Energy Industries Inc. (NASDAQ:AEIS), sold 1,800 shares of the company's common stock on November 26. The shares were sold at a price of $116.84 each, totaling $210,312. Following this transaction, Donikowski holds 8,412 shares directly. This sale was disclosed in a recent SEC filing.
In other recent news, Advanced Energy Industries reported mixed third-quarter earnings results, with a slight sequential increase in revenue but a year-over-year decline. The company announced a Q3 revenue of $374 million, a 3% increase from the previous quarter but a 9% decrease compared to the previous year. However, growth was observed in segments like semiconductor and data center computing due to increased demand.
The company also outlined ambitious goals for the year 2030 during an analyst day, including achieving $3 billion in revenue, a 43% gross margin, and $15 in earnings per share (EPS). Advanced Energy Industries plans to grow faster than the wafer fabrication equipment (WFE) market, targeting plasma power and other applications within the semiconductor sector.
KeyBanc Capital Markets maintained a positive stance on Advanced Energy Industries, reiterating an Overweight rating and a $130.00 price target for the company's stock. Meanwhile, TD Cowen revised its price target for Advanced Energy stock to $118 from $120, maintaining a Hold rating.
These recent developments indicate Advanced Energy's strategic positioning for future growth. The company projects a rise in Q4 revenue to approximately $392 million and anticipates growth in semiconductor and data center segments.
InvestingPro Insights
Advanced Energy Industries Inc. (NASDAQ:AEIS) has been showing some interesting financial trends that provide context to the recent insider sale. According to InvestingPro data, the company's stock is trading near its 52-week high, with a price that's 95.1% of its peak. This aligns with the stock's strong performance, as evidenced by a 22.03% total return over the past year.
Despite the recent insider sale, there are positive signals for investors to consider. InvestingPro Tips highlight that 9 analysts have revised their earnings upwards for the upcoming period, suggesting a potentially optimistic outlook. Additionally, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating a solid financial position.
However, investors should note that AEIS is trading at a high earnings multiple, with a P/E ratio of 99.71. This valuation metric, combined with analysts anticipating a sales decline in the current year, may explain why an insider chose to sell shares at this time.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Advanced Energy Industries Inc., providing a more comprehensive view of the company's financial health and market position.
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