DAIO

Data I/O Corp ($DAIO) President Acquires $25,000 in Shares Following First Signs of Operational Improvement

05/07/2025 20:38

Data I/O Corp ($DAIO) President William Wentworth has purchased approximately $25,000 worth of company stock, according to recent SEC filings. This insider buying comes at a significant moment for the small-cap semiconductor programming solutions provider, which has been struggling with consecutive quarters of disappointing results but recently showed early signs of a potential turnaround. The SEC filing reveals that Wentworth acquired 10,332 shares at an average price of $2.42 on May 6, 2025, pursuant to a pre-established Rule 10b5-1 trading plan. Notably, this purchase follows the company's Q1 2025 earnings announcement on April 24, making the timing particularly meaningful. Data I/O's stock has experienced considerable volatility over the past 12 months. After trading at around $2.90 in mid-2024, the shares declined by approximately 33% to hit a low of $1.95 in mid-April 2025, before recovering slightly to the current $2.38 level. This decline reflects the operational challenges the company has been facing. With a market capitalization of approximately $20 million, Data I/O Corp provides semiconductor programming equipment and services for the automotive, industrial, and consumer electronics markets. The company has weathered several difficult quarters, reporting revenue declines and losses from Q2 2024 through Q4 2024, with a particularly significant loss of 13 cents per share in Q4 2024. However, the recently reported Q1 2025 results showed notable signs of improvement. The company posted revenue of $6.18 million, representing a 1.3% year-over-year increase and exceeding analyst expectations of $5.30 million. Additionally, the quarterly loss narrowed to 4 cents per share from 9 cents in the same quarter last year. These improvements suggest the company may be in the early stages of a potential turnaround. Wentworth's stock purchase following these improved results adds weight to this positive signal. Insider buying, particularly by high-ranking executives like presidents or CEOs, is generally interpreted as a vote of confidence in the company's future prospects. The substantial amount of approximately $25,000 indicates this is more than just a token purchase. Prior to this transaction, the most recent insider buying occurred in August 2024, when director Douglas Wells Brown purchased 3,000 shares for about $8,000. While separated by about nine months, both transactions demonstrate insider confidence in the company's future. Analysts maintain an average rating of "Strong Buy" for Data I/O Corp, with a 12-month price target of $5.00, which is more than double the current share price. This suggests the market continues to see long-term potential in the company, despite recent challenges. However, it's worth noting that the price target has been adjusted downward over time, from $6.50 in July 2024 to the current $5.00. The semiconductor equipment industry is highly sensitive to fluctuations in semiconductor demand. Recent recovery in automotive semiconductor needs and increasing demand for AI-related chips could present opportunities for Data I/O Corp. However, intensifying competition and the pace of technological change remain challenging factors. Investors should view Wentworth's purchase and the Q1 improvements as positive signals while continuing to monitor whether the company can establish a sustainable turnaround. Particular attention should be paid to the upcoming Q2 results to confirm whether revenue growth continues and losses further diminish.

You can receive notifications when news is published.