ASYS

Amtech Systems ($ASYS) Chairman and Director Signal Confidence with 75,000 Share Purchase Amid 48% Stock Collapse

05/16/2025 22:31

Amtech Systems ($ASYS) has seen its top executives making significant share purchases amid a steep decline in the company's stock price over recent months. Shares of $ASYS, which traded around $5.60 at the beginning of the year, have plummeted to approximately $3.50 following the company's April 10 announcement of downward revisions to its second-quarter fiscal 2025 guidance and warnings of material impairment charges. This represents a decline of roughly 48% from its 52-week high. Against this backdrop of falling share prices, Chairman Robert Daigle and Director Robert Averick stepped in with substantial purchases last week. According to SEC filings, Daigle acquired a total of 7,853 shares for approximately $27,353 between May 14 and May 16, at an average price of $3.48 per share. During the same period, Averick made an even larger investment, purchasing 67,649 shares for about $235,775, also at an average price of $3.48 per share. Notably, these significant purchases occurred immediately after $ASYS reported disappointing first-quarter results on May 12. The company posted a loss of 16 cents per share, significantly missing analysts' expectations of a 3-cent profit. Revenue declined by 38.7% year-over-year to $15.58 million, with a net loss of $31.81 million. Amtech Systems is a manufacturer and supplier of capital equipment and consumables for the semiconductor industry, operating through its Thermal Processing Solutions and Semiconductor Fabrication Solutions segments. The company's products are essential for applications in silicon carbide and silicon power devices, as well as electronic assemblies. Examining the pattern of insider transactions over recent months reveals that Director Averick has consistently taken buying positions during periods of stock price weakness. Between August 2024 and March 2025, he acquired a total of 165,812 shares for approximately $845,653 through multiple transactions. It's worth noting that his purchases were concentrated during periods when the stock dropped below $5 in February and when it fell to the $4.80 range in March. In contrast, Chairman Daigle's recent purchases mark his first publicly disclosed acquisition of company shares. The timing of the Chairman's initial buy immediately following the company's announcement of substantial losses could be interpreted as a positive signal for investors. From a financial perspective, while $ASYS has been facing challenges recently, it maintains a healthy liquidity position. The company's current ratio stands at 3.39, indicating sufficient coverage for short-term liabilities, and its debt ratio is relatively low at 25%. However, annual revenue has declined to $100.68 million, with the most recent quarterly revenue showing a 39% year-over-year decrease. The company has announced cost-reduction measures expected to save $11 million annually, which it believes will enable positive EBITDA even at lower revenue levels. Additionally, Amtech is focusing on expanding its recurring revenue streams through consumables and services, and has noted strong demand for AI applications in advanced packaging. Chairman Robert Daigle is a veteran with over 30 years of experience in the semiconductor industry, having previously served as CEO of ATMI Inc. and held board positions at various technology companies. Director Robert Averick joined the $ASYS board in 2016 and serves as a portfolio manager associated with Piton Capital Partners LLC and the Kokino Family Clients. While the broader semiconductor industry has been growing due to the AI boom, smaller equipment manufacturers like $ASYS have struggled with reduced spending and project delays from larger customers. However, industry experts forecast a recovery in semiconductor equipment investments beginning in the second half of 2025. Currently, the average analyst price target for $ASYS stands at $6.00, suggesting an upside potential of approximately 71% from current levels. However, there is a possibility of downward revisions to these targets given the recent poor performance. Investors considering $ASYS at this juncture should weigh the positive signal of substantial insider buying against the cyclical nature of the semiconductor equipment market, the company's declining revenue trend, and the potential effectiveness of its cost-cutting measures. While the aggressive purchasing by insiders may indicate their belief that the stock is undervalued at current levels, investors should be prepared for additional market volatility in the short term.

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