Ultra Clean (NASDAQ:UCTT) Trading Down 10.3% - Should You Sell?

Key Points

• Ultra Clean shares fell 10.3% during Wednesday trading, closing around $93.04 after touching a low of $93.29. Volume was lighter than usual, with 562,449 shares traded versus an average of 1.33 million.
• Despite the selloff, analysts remain broadly bullish on the stock. The consensus rating is “Buy,” and the average price target is $113.40, with several firms recently raising their targets or upgrading the stock.
• The company’s latest earnings beat expectations, with Q1 EPS of $0.31 versus the $0.27 consensus and revenue of $533.7 million above estimates. Ultra Clean also guided Q2 2026 EPS to $0.44–$0.60, while insiders have recently been selling shares.

Shares of Ultra Clean Holdings, Inc. (NASDAQ:UCTT - Get Free Report) dropped 10.3% during trading on Wednesday . The company traded as low as $93.29 and last traded at $93.0390. 562,449 shares changed hands during trading, a decline of 58% from the average session volume of 1,325,644 shares. The stock had previously closed at $103.77.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. TD Cowen boosted their price objective on shares of Ultra Clean from $100.00 to $130.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Oppenheimer boosted their price target on Ultra Clean from $100.00 to $115.00 and gave the company an "outperform" rating in a report on Tuesday, June 9th. Zacks Research raised Ultra Clean from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 25th. Weiss Ratings upgraded Ultra Clean from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday. Finally, Wall Street Zen raised shares of Ultra Clean from a "hold" rating to a "buy" rating in a report on Tuesday, July 7th. 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 a consensus price target of $113.40.

Ultra Clean Trading Down 3.1%

The stock has a fifty day simple moving average of $98.45 and a 200 day simple moving average of $70.50. The firm has a market capitalization of $4.51 billion, a P/E ratio of -23.44, a PEG ratio of 1.31 and a beta of 1.83. 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 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 positive return on equity of 4.28% and a negative net margin of 9.38%.The firm had revenue of $533.70 million during the quarter, compared to analysts' expectations of $525.28 million. During the same quarter last year, the business posted $0.28 earnings per share. The firm's 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. As a group, research analysts forecast that Ultra Clean Holdings, Inc. will post 2.14 EPS for the current year.

Insider Activity

In related news, insider Christopher S. Cook sold 11,903 shares of the firm's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $75.31, for a total transaction of $896,414.93. Following the completion of the transaction, the insider directly owned 108,905 shares of the company's stock, valued at approximately $8,201,635.55. This trade represents a 9.85% decrease in their ownership of the stock. The transaction 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 Ultra Clean stock in a transaction 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 sale, the director owned 38,152 shares in the company, valued at approximately $3,516,851.36. This represents a 17.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 80,106 shares of company stock valued at $6,734,589 in the last quarter. Company insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Ultra Clean

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in UCTT. Vanguard Group Inc. grew 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 purchasing an additional 293,048 shares in the last quarter. Invesco Ltd. grew its stake in shares of Ultra Clean by 63.1% in the 4th quarter. Invesco Ltd. now owns 3,399,834 shares of the semiconductor company's stock worth $86,118,000 after buying an additional 1,315,407 shares in the last quarter. State Street Corp increased its holdings in shares of Ultra Clean by 5.0% in the 4th quarter. State Street Corp now owns 1,852,482 shares of the semiconductor company's stock worth $46,923,000 after buying an additional 87,931 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Ultra Clean by 5.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 821,088 shares of the semiconductor company's stock worth $20,798,000 after buying an additional 43,987 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in shares of Ultra Clean by 90.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 589,055 shares of the semiconductor company's stock valued at $16,052,000 after buying an additional 279,953 shares in the last quarter. 96.06% of the stock is owned by institutional investors.

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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