Lee Kang Jie, CEO of Optoelectronics Inc. (NASDAQ:), sold part of his holdings in the company. According to his most recent SEC filing, Lee sold 8,750 shares of common stock on December 20, 2024, at a weighted average price of $24.33 per share. The total value of this transaction was approximately $212,887. The sale comes as Photronics stock has seen a 9% decline over the past week InvestingPro The analysis indicates that the company maintains a “great” financial health score, supported by strong cash flows and minimal debt.
Following the deal, Lee retains ownership of 545,850 shares in Phototronics, representing a significant stake in the company with a market capitalization of $1.5 billion. The sale was executed in multiple trades, as stated in the filing. according to InvestingProwhich provides comprehensive analysis and 8 additional key insights into Phototronics, the stock currently appears undervalued based on its fair value model.
In other recent news, Phototronics Inc. announced Announces the appointment of David Garcia to its Board of Directors. Garcia has 30 years of legal experience, including roles at Holland & Hart, Wilson Sonsini Goodrich & Rosati, and Venture Law Group. His experience in mergers and acquisitions, venture capital financing and securities offerings is expected to help the photonics company explore various business development opportunities.
The company also reported third-quarter earnings for 2024, revealing earnings per share of $0.51, just below the $0.52 expected, and revenue of $211 million. Despite this minor misstep, Photronics continues to maintain financial stability, characterized by strong cash reserves and a low level of debt. The company also expanded its stock buyback program to $100 million.
Analysts from DA Davidson raised the target for Photronics to $35, citing expectations for a promising investment year of 2025. Despite acknowledging near-term challenges in various end markets and political uncertainties affecting Taiwan and China, the company maintains a long-term bullish perspective on Photonics horizons.
Photronics' fourth-quarter revenue guidance is $213 million to $221 million with a non-GAAP EPS range of $0.51 to $0.54. The company is keen to expand its IC capacity and explore strategic expansion options in the US, Europe and Asia. These latest developments reflect Photronics' confidence in the long-term prospects of the photomask market, driven by trends in artificial intelligence and mobile computing.
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