2 Tech Stocks With Solid Revenue Growth And Recent Insider Buying

 |  Includes: AKAM, CALX
by: Bret Jensen

With insider buying activity being at its lowest level in almost a year, I am starting to put more weight on stocks that are still seeing insider purchases. Here are two tech stocks that recently saw insider buying in February. Both are growing revenues at a double digit rate and seem worthy of consideration by growth investors.

Akamai Technologies (NASDAQ:AKAM) provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally.

4 reasons AKAM could be a solid growth play at $38 a share:

  1. Two insiders bought almost $3mm in new shares in February. They were the first insider purchases since June of last year.
  2. The company has grown revenue at just under a 15% CAGR over the last half decade. Analysts expect sales increases in the low double digits for both FY2013 and FY2014 as well. The stock sells for a five year projected PEG near 1 (1.3)
  3. Akamai has beat earnings estimates for the last six straight quarters.
  4. The company has a solid balance sheet with over $400mm in net cash on the books.

Calix, Inc. (NYSE:CALX) provides broadband communications access systems and software for fiber and copper-based network architectures that enable communications service providers to connect to their residential and business subscribers.

4 reasons CALX has upside from under $9 a share:

  1. A director bought $200K in new shares in February. This follows other insider purchases in September and November.
  2. Earnings are on the upswing. The company earned just 15 cents a share in FY2012. However, analysts project it will make 40 cents a share in FY2013 and over 60 cents a share in FY2014.
  3. Analysts expect almost 25% revenue growth this year, the company has easily beat earnings estimates the last two quarters and consensus earnings estimates for FY2014 have ticked up in the last month.
  4. The company has a solid balance sheet with approximately 10% of its current market capitalization in net cash.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CALX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.