Ultra Clean (NASDAQ:UCTT) Shares Gap Down - Should You Sell?

Key Points

• Ultra Clean shares fell 7%, opening at $86.67 versus the prior close of $92.91, and last traded around $89.42.
• Despite the decline, analyst sentiment remains positive: the stock has a consensus “Moderate Buy” rating and a $129 price target, well above its current level.
• Ultra Clean reported stronger-than-expected quarterly results, with $0.70 EPS and $644.9 million in revenue, up 24.3% year over year; however, insiders have sold roughly $3.54 million of stock over the past 90 days.

Ultra Clean Holdings, Inc. (NASDAQ:UCTT - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $92.91, but opened at $86.67. Ultra Clean shares last traded at $89.4170, with a volume of 222,937 shares changing hands.

Analyst Ratings Changes

UCTT has been the topic of a number of recent research reports. TD Cowen raised their target price on Ultra Clean from $130.00 to $140.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Wall Street Zen raised shares of Ultra Clean from a "hold" rating to a "buy" rating in a report on Sunday, August 9th. Needham & Company LLC lifted their price objective on shares of Ultra Clean from $92.00 to $125.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Zacks Research upgraded shares of Ultra Clean from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 25th. Finally, Oppenheimer upped their target price on shares of Ultra Clean from $115.00 to $150.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, Ultra Clean has a consensus rating of "Moderate Buy" and a consensus price target of $129.00.

Ultra Clean Stock Down 7.0%

The company has a market cap of $3.87 billion, a price-to-earnings ratio of -166.10, a price-to-earnings-growth ratio of 0.97 and a beta of 1.88. The stock has a 50-day simple moving average of $100.11 and a 200-day simple moving average of $78.87. The company has a current ratio of 2.73, a quick ratio of 1.25 and a debt-to-equity ratio of 0.84.

Ultra Clean (NASDAQ:UCTT - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The semiconductor company reported $0.70 EPS for the quarter, beating analysts' consensus estimates of $0.53 by $0.17. Ultra Clean had a positive return on equity of 6.99% and a negative net margin of 1.07%.The company had revenue of $644.90 million for the quarter, compared to analyst estimates of $587.65 million. During the same period last year, the company earned $0.27 earnings per share. The company's quarterly revenue was up 24.3% compared to the same quarter last year. Ultra Clean has set its Q3 2026 guidance at 0.830-1.030 EPS. As a group, analysts predict that Ultra Clean Holdings, Inc. will post 2.67 EPS for the current year.

Insider Buying and Selling at Ultra Clean

In other news, General Counsel Paul Yoonku Cho sold 944 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $89.37, for a total value of $84,365.28. Following the completion of the sale, the general counsel directly owned 22,941 shares of the company's stock, valued at approximately $2,050,237.17. This represents a 3.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Emily M. Liggett sold 8,198 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $92.18, for a total transaction of $755,691.64. Following the completion of the transaction, the director owned 38,152 shares of the company's stock, valued at $3,516,851.36. This trade represents a 17.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 39,329 shares of company stock valued at $3,540,599. Company insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Ultra Clean

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Ultra Clean during the 2nd quarter valued at $986,722,000. Vanguard Group Inc. lifted its holdings in shares of Ultra Clean by 6.2% in the fourth quarter. Vanguard Group Inc. now owns 4,990,724 shares of the semiconductor company's stock valued at $126,415,000 after buying an additional 293,048 shares during the period. Invesco Ltd. boosted its stake in Ultra Clean by 63.1% during the fourth quarter. Invesco Ltd. now owns 3,399,834 shares of the semiconductor company's stock valued at $86,118,000 after buying an additional 1,315,407 shares in the last quarter. State Street Corp grew its holdings in Ultra Clean by 5.0% during the fourth quarter. State Street Corp now owns 1,852,482 shares of the semiconductor company's stock worth $46,923,000 after acquiring an additional 87,931 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its holdings in Ultra Clean by 5.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 821,088 shares of the semiconductor company's stock worth $20,798,000 after acquiring an additional 43,987 shares during the period. 96.06% of the stock is currently owned by institutional investors and hedge funds.

Ultra Clean Company Profile

Ultra Clean Holdings, Inc is a global supplier of critical consumables and process tools for the semiconductor manufacturing industry. The company specializes in precision parts cleaning, chemical–mechanical planarization (CMP) slurries, surface conditioning pads, and specialty components used in wafer fabrication and advanced packaging. Ultra Clean also provides assembly and test hardware, tooling, and automated modules designed to support complex front-end and back-end processes in semiconductor fabs.

Ultra Clean's product portfolio encompasses a range of cleaning systems and consumables aimed at particle and film removal, as well as CMP slurries and pads that are engineered for uniform material removal and planarization.

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