Ultra Clean (NASDAQ:UCTT) Shares Gap Down - Time to Sell?

Key Points

• Ultra Clean shares gapped down sharply before the market opened, falling from a prior close of $123.14 to an open of $111.38, though the stock later traded around $112.46.
• Despite the drop, Wall Street sentiment remains positive: several analysts recently raised targets or reiterated buy ratings, and the consensus rating is still “Buy” with an average price target of $107.40.
• The company recently beat quarterly earnings and revenue estimates, reporting $0.31 EPS on $533.7 million in revenue, but insider selling has been notable, with executives selling 80,106 shares over the past 90 days.

Ultra Clean Holdings, Inc. (NASDAQ:UCTT - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $123.14, but opened at $111.38. Ultra Clean shares last traded at $112.4590, with a volume of 149,797 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on UCTT. Oppenheimer raised their price objective on shares of Ultra Clean from $100.00 to $115.00 and gave the stock an "outperform" rating in a research note on Tuesday, June 9th. UBS Group began coverage on Ultra Clean in a report on Tuesday, May 5th. They set a "buy" rating and a $130.00 target price on the stock. Needham & Company LLC boosted their price target on Ultra Clean from $70.00 to $92.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Wall Street Zen upgraded Ultra Clean from a "hold" rating to a "buy" rating in a research report on Sunday. Finally, Craig Hallum reiterated a "buy" rating and set a $100.00 price objective on shares of Ultra Clean in a research report on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $107.40.

Ultra Clean Stock Performance

The firm has a market cap of $4.92 billion, a PE ratio of -25.76, a P/E/G ratio of 1.62 and a beta of 1.94. The stock has a 50-day moving average price of $87.73 and a 200 day moving average price of $60.87. The company has a debt-to-equity ratio of 0.86, a current ratio of 3.07 and a quick ratio of 1.72.

Ultra Clean (NASDAQ:UCTT - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The semiconductor company reported $0.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.04. Ultra Clean had a positive return on equity of 4.28% and a negative net margin of 9.38%.The firm had revenue of $533.70 million for the quarter, compared to analyst estimates of $525.28 million. During the same period last year, the company earned $0.28 EPS. The firm's quarterly revenue was up 2.9% on a year-over-year basis. Ultra Clean has set its Q2 2026 guidance at 0.440-0.600 EPS. Research analysts forecast that Ultra Clean Holdings, Inc. will post 2.14 earnings per share for the current year.

Insider Activity

In other Ultra Clean news, CFO Sheri Savage sold 15,766 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $89.47, for a total transaction of $1,410,584.02. Following the transaction, the chief financial officer owned 50,710 shares of the company's stock, valued at $4,537,023.70. This trade represents a 23.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey L. Mckibben sold 4,205 shares of Ultra Clean stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.00, for a total transaction of $365,835.00. Following the completion of the transaction, the insider owned 11,349 shares in the company, valued at approximately $987,363. This trade represents a 27.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 80,106 shares of company stock valued at $6,734,589 in the last ninety days. 1.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ultra Clean

Several institutional investors and hedge funds have recently added to or reduced their stakes in UCTT. Invesco Ltd. grew its holdings in shares of Ultra Clean by 63.1% during the 4th quarter. Invesco Ltd. now owns 3,399,834 shares of the semiconductor company's stock worth $86,118,000 after purchasing an additional 1,315,407 shares during the period. Cooper Creek Partners Management LLC acquired a new position in Ultra Clean during the first quarter valued at approximately $36,486,000. Millennium Management LLC lifted its position in Ultra Clean by 944.8% during the fourth quarter. Millennium Management LLC now owns 559,955 shares of the semiconductor company's stock valued at $14,184,000 after buying an additional 506,363 shares in the last quarter. SG Americas Securities LLC grew its stake in Ultra Clean by 348.7% during the first quarter. SG Americas Securities LLC now owns 565,569 shares of the semiconductor company's stock worth $35,167,000 after buying an additional 439,526 shares during the period. Finally, Bank of America Corp DE grew its stake in Ultra Clean by 502.4% during the first quarter. Bank of America Corp DE now owns 454,020 shares of the semiconductor company's stock worth $28,231,000 after buying an additional 378,648 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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