Jamie J Palfrey, SVP at Ultra Clean Hldgs UCTT, disclosed an insider sell on May 8, according to a recent SEC filing.
What Happened: After conducting a thorough analysis, Palfrey sold 9,500 shares of Ultra Clean Hldgs. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $182,371.
During Friday’s morning session, Ultra Clean Hldgs shares down by 1.34%, currently priced at $19.87.
Unveiling the Story Behind Ultra Clean Hldgs
Ultra Clean Holdings Inc, through its subsidiaries, manufactures and supplies production tools, modules, and subsystems for the semiconductor capital equipment industry. The product includes precision robotic solutions, gas delivery systems, and a variety of industrial and automation production equipment products; subsystems include wafer cleaning subsystems, chemical delivery modules, top-plate assemblies, frame assemblies, and process modules. Its customer base includes firms in the semiconductor capital equipment industry, medical, energy, industrial, flat panel, and research equipment industries. It has two segments Products and Services. Its principal markets are Americas, Asia Pacific and EMEA.
Unraveling the Financial Story of Ultra Clean Hldgs
Revenue Growth: Ultra Clean Hldgs displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 8.56%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Analyzing Profitability Metrics:
-
Gross Margin: The company shows a low gross margin of 16.2%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
-
Earnings per Share (EPS): Ultra Clean Hldgs’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.11.
Debt Management: Ultra Clean Hldgs’s debt-to-equity ratio surpasses industry norms, standing at 0.74. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Valuation Analysis:
-
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 32.48 is lower than the industry average, indicating potential undervaluation for the stock.
-
Price to Sales (P/S) Ratio: The current P/S ratio of 0.43 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 6.53, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Navigating the Impact of Insider Transactions on Investments
Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Essential Transaction Codes Unveiled
When it comes to 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 indicates 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 Ultra Clean Hldgs’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Add Comment