Ultra Clean (NASDAQ:UCTT) Trading Down 6.5% – Here’s Why

Ultra Clean Holdings, Inc. (NASDAQ:UCTT)’s share price traded down 6.5% on Wednesday . The company traded as low as $67.49 and last traded at $67.29. 1,676,951 shares traded hands during trading, an increase of 30% from the average session volume of 1,293,727 shares. The stock had previously closed at $71.96.

Ultra Clean News Roundup

Here are the key news stories impacting Ultra Clean this week:

• Positive Sentiment: Analysts reaffirmed bullish views — Needham raised its price target to $70 and maintained a Buy, and other analysts (TD Cowen) kept Buy ratings, supporting upside expectations from a semiconductor/AI recovery. PT Raised to $70 at Needham
• Positive Sentiment: Company highlights long-term growth plan — Ultra Clean is positioning for AI-driven semiconductor demand and has signaled a ~$4B revenue run-rate strategy tied to wafer-fab and data-center buildouts, a longer-term growth catalyst. Ultra Clean signals $4B revenue run-rate strategy
• Neutral Sentiment: Proposed $400M convertible senior notes offering — the company filed to sell $400 million of 2031 convertible senior notes in a private placement. This raises near-term funding but introduces potential debt servicing and future share conversion/dilution risks; market reaction depends on deal pricing and use of proceeds. Ultra Clean Announces Proposed Convertible Senior Notes Offering
• Negative Sentiment: Q4 results missed on EPS and showed year-over-year weakness — UCTT reported $0.22 EPS vs. $0.23 consensus, and revenue declined year-over-year despite being roughly in-line with estimates; gross and operating profit contracted versus prior year. That miss pushed near-term concern on margins and demand. UCTT Q4 Earnings Report
• Negative Sentiment: Cautious Q1 2026 guidance — management set Q1 EPS guidance of $0.18–$0.34 (consensus ~ $0.22) and provided revenue guidance slightly wide of expectations, leaving near-term visibility limited and contributing to the share decline. Ultra Clean Q1 Guidance (press release/slide deck)

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Oppenheimer boosted their price objective on Ultra Clean from $35.00 to $85.00 and gave the stock an “outperform” rating in a research report on Tuesday. TD Cowen upped their price target on Ultra Clean from $35.00 to $70.00 and gave the stock a “buy” rating in a report on Tuesday. Weiss Ratings reissued a “sell (d)” rating on shares of Ultra Clean in a research report on Monday, December 29th. Needham & Company LLC boosted their target price on shares of Ultra Clean from $50.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday. Finally, Craig Hallum reiterated a “buy” rating and set a $100.00 target price on shares of Ultra Clean in a research note on Tuesday. Four equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Ultra Clean presently has an average rating of “Moderate Buy” and an average target price of $81.25.

Ultra Clean Trading Down 6.4%

The business has a 50-day moving average price of $41.15 and a 200-day moving average price of $31.35. The company has a quick ratio of 1.91, a current ratio of 3.21 and a debt-to-equity ratio of 0.60. The firm has a market capitalization of $3.06 billion, a P/E ratio of -16.83, a PEG ratio of 1.81 and a beta of 2.02.

Ultra Clean (NASDAQ:UCTT) last issued its earnings results on Monday, February 23rd. The semiconductor company reported $0.22 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.01). The firm had revenue of $506.70 million during the quarter, compared to the consensus estimate of $503.34 million. Ultra Clean had a positive return on equity of 3.82% and a negative net margin of 8.82%.The firm’s revenue for the quarter was down 10.1% compared to the same quarter last year. During the same period last year, the business earned $0.51 earnings per share. Ultra Clean has set its Q1 2026 guidance at 0.180-0.340 EPS. Analysts anticipate that Ultra Clean Holdings, Inc. will post 1.09 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director David T. Ibnale sold 23,500 shares of the stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $26.63, for a total value of $625,805.00. Following the completion of the transaction, the director owned 45,241 shares of the company’s stock, valued at $1,204,767.83. This represents a 34.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ultra Clean

Large investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC lifted its position in shares of Ultra Clean by 148.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 926 shares of the semiconductor company’s stock worth $25,000 after buying an additional 554 shares during the period. Quadrant Capital Group LLC raised its stake in Ultra Clean by 40.3% during the fourth quarter. Quadrant Capital Group LLC now owns 989 shares of the semiconductor company’s stock worth $25,000 after acquiring an additional 284 shares in the last quarter. Danske Bank A S raised its stake in Ultra Clean by 450.0% during the fourth quarter. Danske Bank A S now owns 1,100 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 900 shares in the last quarter. Allworth Financial LP lifted its holdings in shares of Ultra Clean by 237.6% during the second quarter. Allworth Financial LP now owns 1,330 shares of the semiconductor company’s stock valued at $30,000 after acquiring an additional 936 shares during the period. Finally, Smartleaf Asset Management LLC boosted its stake in shares of Ultra Clean by 472.9% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,713 shares of the semiconductor company’s stock valued at $39,000 after purchasing an additional 1,414 shares in the last quarter. 96.06% of the stock is currently owned by institutional investors.

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.