Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Making a noteworthy insider sell on June 12, Kevin Engel, Executive Vice President at Amkor Tech (NASDAQ:AMKR), is reported in the latest SEC filing.
What Happened: Engel's decision to sell 4,921 shares of Amkor Tech was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $163,475.
Amkor Tech's shares are actively trading at $34.88, experiencing a down of 2.06% during Thursday's morning session.
About Amkor Tech Amkor Technology Inc is a provider of outsourced semiconductor packaging and test services to integrated device manufacturers, fabless semiconductor companies, and contract foundries. The firm's products are organized into two categories namely advanced products that include flip chip, fine pitch bumping, wafer-level processing, advanced SiPs, power modules, and others, and Mainstream products that includes wirebond packaging and testing. The company derives maximum revenue from the advanced products category. The company derives majority of its revenue from Foreign states.
Amkor Tech: Financial Performance Dissected Negative Revenue Trend: Examining Amkor Tech's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -7.21% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Navigating Financial Profits:
- Gross Margin: The company shows a low gross margin of 14.77%, suggesting potential challenges in cost control and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Amkor Tech exhibits below-average bottom-line performance with a current EPS of 0.24.
Valuation Overview:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 23.43 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.38, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Amkor Tech's EV/EBITDA ratio at 7.45 suggests potential undervaluation, falling below industry averages.
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Understanding the Significance of Insider Transactions Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Breaking Down the Significance of Transaction Codes When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Amkor Tech's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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