On September 13, 2023, David Wang, See Remarks and 10% Owner of ACM Research Inc (NASDAQ:ACMR), sold 175,116 shares of the company. This move is part of a series of insider transactions that have taken place over the past year.
David Wang is a key figure at ACM Research Inc, a company that specializes in the development and manufacture of single-wafer wet cleaning equipment. The company's products are used in numerous manufacturing steps to remove particles, contaminants and other random defects, and thereby improve product yield, in the fabrication of advanced integrated circuits.
Over the past year, the insider has sold a total of 175,116 shares and has not made any purchases. This trend is consistent with the overall insider transaction history for ACM Research Inc, which shows zero insider buys and 10 insider sells over the same timeframe.
The relationship between insider transactions and the stock price is often a topic of interest for investors. In the case of ACM Research Inc, the stock was trading at $17.87 per share on the day of the insider's recent sell, giving the company a market cap of $1.004 billion.
The price-earnings ratio of ACM Research Inc is 16.41, which is lower than the industry median of 23.96 and also lower than the companys historical median price-earnings ratio. This suggests that the stock is undervalued compared to its peers and its own historical performance.
Furthermore, with a price of $17.87 and a GuruFocus Value of $55.42, ACM Research Inc has a price-to-GF-Value ratio of 0.32. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sell by the insider, David Wang, is part of a broader trend of insider sells at ACM Research Inc. Despite this, the company's stock appears to be significantly undervalued based on its GF Value and price-earnings ratio. Investors should keep a close eye on further insider transactions and other market indicators to make informed investment decisions.
This article first appeared on GuruFocus.