ACM Research (NASDAQ:ACMR) Shares Gap Down on Disappointing Earnings

ACM Research, Inc. (NASDAQ:ACMR) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $38.90, but opened at $30.80. ACM Research shares last traded at $32.2040, with a volume of 1,102,852 shares.

The specialty retailer reported $0.36 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.11). ACM Research had a net margin of 13.76% and a return on equity of 9.57%. The firm had revenue of $269.16 million during the quarter, compared to the consensus estimate of $251.72 million. During the same period in the previous year, the firm posted $0.63 EPS. The company’s quarterly revenue was up 32.0% compared to the same quarter last year. ACM Research has set its FY 2025 guidance at EPS.

Analyst Upgrades and Downgrades

Several analysts have commented on ACMR shares. Roth Capital reissued a “buy” rating and issued a $40.00 target price on shares of ACM Research in a research report on Wednesday. Weiss Ratings upgraded shares of ACM Research from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 24th. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, ACM Research currently has an average rating of “Moderate Buy” and an average target price of $29.75.

Insider Activity

In related news, insider Sotheara Cheav sold 11,152 shares of the company’s stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $30.00, for a total transaction of $334,560.00. Following the completion of the sale, the insider directly owned 100,002 shares of the company’s stock, valued at approximately $3,000,060. This represents a 10.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider David H. Wang sold 70,000 shares of the company’s stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $26.76, for a total transaction of $1,873,200.00. Following the sale, the insider owned 672,708 shares of the company’s stock, valued at $18,001,666.08. This trade represents a 9.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 256,152 shares of company stock worth $7,549,160. 25.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Jones Financial Companies Lllp lifted its holdings in shares of ACM Research by 206.8% during the third quarter. Jones Financial Companies Lllp now owns 764 shares of the specialty retailer’s stock valued at $29,000 after acquiring an additional 515 shares during the period. SBI Securities Co. Ltd. raised its stake in shares of ACM Research by 78.9% in the third quarter. SBI Securities Co. Ltd. now owns 832 shares of the specialty retailer’s stock valued at $33,000 after acquiring an additional 367 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in ACM Research by 656.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,293 shares of the specialty retailer’s stock worth $33,000 after acquiring an additional 1,122 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in ACM Research by 871.5% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 4,673 shares of the specialty retailer’s stock valued at $109,000 after purchasing an additional 4,192 shares during the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new stake in shares of ACM Research during the first quarter worth $114,000. Institutional investors own 66.75% of the company’s stock.

ACM Research Price Performance

The company has a quick ratio of 1.49, a current ratio of 2.45 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $1.84 billion, a P/E ratio of 18.85 and a beta of 1.44. The stock has a fifty day moving average of $36.36 and a 200-day moving average of $29.29.

ACM Research Company Profile

ACM Research, Inc, together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating.