In a recent move, an executive at SITIME Corp (NASDAQ:SITM), a company specializing in semiconductor and related devices, has sold a number of company shares. The transaction, which took place on May 9, 2024, involved the sale of 781 shares at an average price of $117.08 per share, totaling over $91,000.
The executive, identified as Lionel Bonnot, currently holds the position of Executive Vice President, Worldwide Sales and Business Development at SITIME Corp. According to the report, the shares were sold in multiple transactions with prices ranging from $111.23 to $120.00. This range indicates a variation in the market price at the time of the sale.
Following the transaction, Bonnot's remaining stake in the company includes 98,299 shares of common stock. It's worth noting that this figure includes 85,110 shares that are issuable pursuant to restricted stock units and performance-based restricted stock units that have not yet vested, as indicated in the footnotes of the report.
The sale was conducted under a weighted average price strategy, ensuring the executive received a fair market value for the shares sold. Investors and interested parties can request detailed information about the number of shares sold at each separate price within the stated range.
The transactions are part of the routine financial disclosures made by executives and are publicly available for review. These filings provide transparency and allow shareholders to stay informed about the financial dealings of company insiders.
InvestingPro Insights
Amidst the recent share sale by an executive at SITIME Corp (NASDAQ:SITM), it's crucial for investors to consider the company's financial health and market performance. SITIME, known for its precision time solutions in semiconductor markets, has shown some notable metrics in its recent financial data. The company holds a market capitalization of $2.84 billion, which is reflective of investor confidence and market valuation. However, the company's P/E ratio stands at -30.00, indicating that it is not currently profitable.
InvestingPro data showcases that SITIME's revenue over the last twelve months as of Q1 2024 was $138.67 million, yet it experienced a significant decline in revenue growth at -44.9%. Despite this, the gross profit margin remains strong at 55.32%, suggesting that while revenue has fallen, the company maintains a good control over its cost of goods sold. This aligns with one of the InvestingPro Tips, which points out that SITIME is not profitable over the last twelve months. The recent share sale by the executive might be seen in the context of these financial metrics.
From an investment standpoint, SITIME's stock has shown a strong return over the last month, with a 50.86% increase in total return. This significant uptick is also reflected in the short-term performance, with a 27.43% return over the last week. While these figures are impressive, it's important to note that the stock is considered to be in overbought territory according to its Relative Strength Index (RSI), which is another InvestingPro Tip. This suggests that the stock might be due for a price correction in the near future.
For investors seeking a deeper dive into SITIME's financials and market performance, InvestingPro offers additional insights and tips. There are 11 more InvestingPro Tips available, including analysis on the company's cash position, volatility, and future profitability predictions. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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