Ultra Clean (NASDAQ:UCTT) Shares Gap Down - What's Next?

Key Points

• Ultra Clean shares gapped down on Thursday, opening at $86.73 after closing at $92.55, and last traded around $89.33.
• Despite the pullback, analysts remain mostly bullish: the stock has an average “Buy” rating with a consensus price target of $104.40, and UBS recently initiated coverage with a $130 target.
• The company’s latest quarterly results beat expectations, with $0.31 EPS versus $0.27 expected and revenue of $533.7 million above estimates, though recent insider selling and the stock’s volatility may be weighing on sentiment.

Shares of Ultra Clean Holdings, Inc. (NASDAQ:UCTT - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $92.55, but opened at $86.73. Ultra Clean shares last traded at $89.3320, with a volume of 167,972 shares.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on UCTT. UBS Group began coverage on Ultra Clean in a report on Tuesday, May 5th. They set a "buy" rating and a $130.00 price objective for the company. Wall Street Zen raised Ultra Clean from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Craig Hallum reaffirmed a "buy" rating and set a $100.00 price objective on shares of Ultra Clean in a report on Tuesday, February 24th. Needham & Company LLC lifted their price objective on Ultra Clean from $70.00 to $92.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Finally, Oppenheimer lifted their price objective on Ultra Clean from $85.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $104.40.

Ultra Clean Stock Performance

The company has a market capitalization of $4.14 billion, a price-to-earnings ratio of -21.33, a PEG ratio of 1.26 and a beta of 1.94. The stock has a fifty day moving average price of $77.09 and a two-hundred day moving average price of $53.50. The company has a quick ratio of 1.72, a current ratio of 3.07 and a debt-to-equity ratio of 0.86.

Ultra Clean (NASDAQ:UCTT - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The semiconductor company reported $0.31 earnings per share 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 company had revenue of $533.70 million during the quarter, compared to analysts' expectations of $525.28 million. During the same period in the previous year, the firm posted $0.28 earnings per share. The business's revenue for the quarter was up 2.9% compared to the same quarter last year. Ultra Clean has set its Q2 2026 guidance at 0.440-0.600 EPS. As a group, analysts forecast that Ultra Clean Holdings, Inc. will post 2.04 EPS for the current fiscal year.

Insider Transactions at Ultra Clean

In related news, insider Jeffrey L. Mckibben sold 4,205 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.00, for a total value of $365,835.00. Following the completion of the transaction, the insider directly owned 11,349 shares in the company, valued at approximately $987,363. This represents a 27.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Paul Yoonku Cho sold 2,000 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $86.89, for a total value of $173,780.00. Following the completion of the transaction, the general counsel owned 15,844 shares of the company's stock, valued at $1,376,685.16. The trade was a 11.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 48,975 shares of company stock valued at $3,949,681. Corporate insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Ultra Clean

Institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its stake in Ultra Clean by 148.9% in the third quarter. EverSource Wealth Advisors LLC now owns 926 shares of the semiconductor company's stock valued at $25,000 after purchasing an additional 554 shares during the last quarter. Quadrant Capital Group LLC increased its stake in Ultra Clean by 40.3% in the fourth quarter. Quadrant Capital Group LLC now owns 989 shares of the semiconductor company's stock valued at $25,000 after purchasing an additional 284 shares during the last quarter. Danske Bank A S increased its stake in Ultra Clean by 450.0% in the fourth quarter. Danske Bank A S now owns 1,100 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 900 shares during the last quarter. AdvisorNet Financial Inc acquired a new position in Ultra Clean in the first quarter valued at $34,000. Finally, Smartleaf Asset Management LLC increased its stake in Ultra Clean by 472.9% in the second quarter. Smartleaf Asset Management LLC now owns 1,713 shares of the semiconductor company's stock valued at $39,000 after purchasing an additional 1,414 shares during the last quarter. 96.06% of the stock is currently owned by institutional investors and hedge funds.

About Ultra Clean

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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