Susan Ocampo, a director and major shareholder of MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI), recently sold shares worth approximately $32.3 million. The transactions took place in late November at prices ranging from $133.15 to $137.18 per share, leading to a total of 6,313,193 shares held indirectly by Ocampo. Despite this selling activity, MACOM has received positive attention from analysts, with Needham & Company raising its stock price target to $150 from $120 and maintaining a Buy rating.
MACOM reported record-breaking financial results for the fourth fiscal quarter of 2024, achieving a record quarterly revenue of $200.7 million and an adjusted earnings per share (EPS) of $0.73. The company also closed the acquisition of ENGIN-IC, bolstering its microwave IC design capabilities for defense applications. Looking ahead, MACOM anticipates revenue between $212 million and $218 million and an adjusted EPS of $0.75 to $0.81 for the first quarter of 2025, with the goal of surpassing $1 billion in annualized revenue by fiscal year 2026.
Despite potential industry volatility, Needham foresees new optical technologies contributing significantly to MACOM’s revenue stream in the near future. The stock has shown strong performance, with a 59.02% total return over the past year and a 28.81% return in the last three months. While the company’s high valuation multiples may warrant careful consideration, positive forecasts for net income growth and strong financial health could attract investors looking for future growth potential.
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