Ultra Clean (NASDAQ:UCTT) Stock Price Down 6% Following Insider Selling

Key Points

• Ultra Clean shares fell 6% after insider selling news, trading as low as $84.35 from a prior close of $91.58, with volume well below its daily average.
• Director Emily M. Liggett sold 8,198 shares at an average price of $92.18, reducing her ownership by 17.69% and disclosing the transaction with the SEC.
• Despite the pullback, analysts remain largely bullish: the stock has a consensus Buy rating and an average price target of $104.40, while Ultra Clean also recently beat earnings and revenue estimates.

Ultra Clean Holdings, Inc. (NASDAQ:UCTT - Get Free Report) shares dropped 6% during mid-day trading on Thursday following insider selling activity. The company traded as low as $84.35 and last traded at $86.0520. Approximately 137,329 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 1,258,025 shares. The stock had previously closed at $91.58.

Specifically, Director Emily M. Liggett sold 8,198 shares of Ultra Clean stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $92.18, for a total value of $755,691.64. Following the completion of the transaction, the director owned 38,152 shares in the company, valued at $3,516,851.36. This trade represents a 17.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Wall Street Analyst Weigh In

A number of brokerages recently commented on UCTT. Craig Hallum restated a "buy" rating and set a $100.00 price target on shares of Ultra Clean in a research note on Tuesday, February 24th. Needham & Company LLC lifted their price objective on shares of Ultra Clean from $70.00 to $92.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. TD Cowen boosted their target price on shares of Ultra Clean from $70.00 to $100.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. UBS Group initiated coverage on Ultra Clean in a research report on Tuesday, May 5th. They set a "buy" rating and a $130.00 target price on the stock. Finally, Wall Street Zen raised Ultra Clean from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Two investment 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 data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $104.40.

Ultra Clean Price Performance

The business's 50-day moving average price is $74.27 and its 200 day moving average price is $51.31. The company has a market capitalization of $3.90 billion, a P/E ratio of -20.17, a price-to-earnings-growth ratio of 1.22 and a beta of 1.94. 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 posted its earnings results on Tuesday, April 28th. The semiconductor company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.04. Ultra Clean had a negative net margin of 9.38% and a positive return on equity of 4.28%. The business had revenue of $533.70 million for the quarter, compared to analysts' expectations of $525.28 million. During the same period in the prior year, the company posted $0.28 EPS. 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. Analysts anticipate that Ultra Clean Holdings, Inc. will post 2.04 EPS for the current fiscal year.

Institutional Investors Weigh In On Ultra Clean

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada grew its position in Ultra Clean by 35.8% during the first quarter. Royal Bank of Canada now owns 25,926 shares of the semiconductor company's stock worth $555,000 after buying an additional 6,841 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Ultra Clean by 16.9% in the 1st quarter. AQR Capital Management LLC now owns 198,791 shares of the semiconductor company's stock valued at $4,256,000 after acquiring an additional 28,690 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Ultra Clean by 5.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,425 shares of the semiconductor company's stock valued at $566,000 after acquiring an additional 1,257 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Ultra Clean by 18.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 85,094 shares of the semiconductor company's stock valued at $1,822,000 after acquiring an additional 13,005 shares during the last quarter. Finally, Jane Street Group LLC grew its holdings in shares of Ultra Clean by 1,987.5% during the first quarter. Jane Street Group LLC now owns 148,214 shares of the semiconductor company's stock worth $3,173,000 after purchasing an additional 141,114 shares in the last quarter. Hedge funds and other institutional investors own 96.06% of the company's stock.

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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