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There was intensive insider buying in Vitesse Semiconductor (NASDAQ:VTSS) in December 2012 when the stock was trading at $1.75. The stock is currently trading at $2.63 or 50.3% above the low made in December 2012.

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With this episode in mind, I screened for stocks, which have seen recent intensive insider buying. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

In this article, I will feature two tech stocks that have seen intensive insider buying during the last 30 days.

1. BCE Inc. (NYSE:BCE) provides communications solutions to residential, business, and wholesale customers primarily in Canada.

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Insider buying by insider (last 30 days)

  • Barry Allen purchased 2,500 shares on June 27 and currently holds 22,500 shares or less than 0.1% of the company. Barry Allen serves as a director of the company.
  • Robert Simmonds purchased 11,000 shares on June 14 and currently holds 104,000 shares or less than 0.1% of the company. Robert Simmonds serves as a director of the company.
  • John Watson purchased 1,900 shares on June 10 and currently holds 4,900 shares or less than 0.1% of the company. John Watson is Executive Vice President, Customer Operations.

Insider buying by calendar month

Here is a table of BCE's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 201315,4000
May 201300
April 201300
March 20130105,371
February 20130165,000
January 2013800

The month of June has seen the most insider buying this year.

Financials

The company reported the first-quarter financial results on May 9 with the following highlights:

Revenue$4.9 billion
Net income$566 million
Net debt$17.7 billion

Outlook

The company's guidance for 2013 is as follows:

Revenue growth [Bell]0%-2%
Adjusted EPS$2.97-$3.03
Annual dividend$2.33 per share

Competition

BCE's competitors include Rogers Communications (NYSE:RCI) and TELUS Corporation (NYSE:TU). Here is a table comparing these companies.

CompanyBCERCITU
Market Cap:31.83B20.20B19.08B
Employees:55,50026,80141,400
Qtrly Rev Growth (yoy):0.000.030.05
Revenue:20.37B12.81B11.19B
Gross Margin:0.400.380.36
EBITDA:8.18B4.88B4.12B
Operating Margin:0.230.240.20
Net Income:2.71B1.79B1.39B
EPS:3.503.432.12
P/E:11.7411.4213.80
PEG (5 yr expected):3.143.251.85
P/S:1.531.551.66

BCE's P/S ratio is in line with its direct competitors'.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. There are two analyst buy ratings, 10 neutral ratings and one sell rating with an average target price of $45.45. The stock is trading at a P/E ratio of 11.74 and a forward P/E ratio of 13.32. The company has a book value of $13.53 per share and the stock has a dividend yield of 5.58%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Vitesse Semiconductor Corporation designs, develops, and markets semiconductor products.

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Insider buying by insider (last 30 days)

  • James Hugar purchased 10,000 shares on June 25 pursuant to a public offering. James Hugar currently holds 88,456 shares or 0.2% of the company. James Hugar has served as a director since October 2009.
  • Steven Hanson purchased 4,650 shares on June 25 pursuant to a public offering. Steven Hanson currently holds 72,920 shares or 0.1% of the company. Steven Hanson has served as a director since August 2007.
  • Kenneth Traub purchased 45,200 shares on June 25 pursuant to a public offering. Kenneth Traub currently holds 84,200 shares or 0.2% of the company. Kenneth Traub serves as a director of the company.
  • Edward Rogas purchased 11,400 shares on June 25 pursuant to a public offering. Edward Rogas currently holds 88,856 shares or 0.2% of the company. Edward Rogas has served as a director and Chairman of the Board since 2006.
  • Martin Nuss purchased 4,650 shares on June 25 pursuant to a public offering. Martin Nuss currently holds 134,230 shares or 0.2% of the company. Martin Nuss joined Vitesse in November 2007 as Vice President, Technology and Strategy and Chief Technical Officer.
  • Martin McDermut purchased 45,200 shares on June 25 pursuant to a public offering. Martin McDermut currently holds 229,514 shares or 0.4% of the company. Martin McDermut joined Vitesse in July 2011 as senior vice president, finance and chief financial officer.
  • Scot Jarvis purchased 22,500 shares on June 25 pursuant to a public offering. Scot Jarvis currently holds 96,283 shares or 0.2% of the company. Scot Jarvis serves as a director of the company.
  • William Martin purchased 3,900,000 shares by Raging Capital Master Fund on June 25 pursuant to a public offering. William Martin currently controls 10,391,127 shares or 18.6% of Vitesse Semiconductor.

Insider buying by calendar month

Here is a table of Vitesse Semiconductor's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 20134,043,6000
May 201300
April 201300
March 201300
February 201300
January 201300

The month of June has seen all of the insider buying this year.

Financials

The company reported the fiscal 2013 second-quarter, which ended March 31, financial results on May 7 with the following highlights:

Revenue$24.8 million
Net loss$4.8 million
Cash$36.9 million
Debt$59.5 million

On June 25 Vitesse announced the closing of an underwritten public offering for 18,720,000 shares of its common stock at a per share price to the public of $2.15. The company will receive net proceeds of approximately $37.5 million after deducting the underwriting discount and estimated offering expenses. Certain officers and directors of Vitesse participated in the offering as mentioned above.

Outlook

For the third quarter of fiscal year 2013, ending June 30, Vitesse expects revenues to be in the range of $25.0 million to $27.5 million and product margins are expected to be between 51% and 53%. Operating expenses are expected to be between $18.5 million and $19.5 million.

Competition

In the communications networking market, which includes Vitesse's Carrier and Enterprise networking markets, Vitesse's competitors include Applied Micro Circuit (NASDAQ:AMCC), Broadcom (NASDAQ:BRCM), EZChip Semiconductor (NASDAQ:EZCH), Marvell Technology Group (NASDAQ:MRVL), Mindspeed Technologies (NASDAQ:MSPD), and PMC-Sierra (NASDAQ:PMCS). In the signal integrity market, Vitesse's competitors include Maxim Integrated Products (NASDAQ:MXIM), Mindspeed Technologies, Semtech (NASDAQ:SMTC), and Texas Instruments (NASDAQ:TXN). Over the next few years, Vitesse expects additional competitors, some of whom may have greater financial and other resources than Vitesse has, to enter the market with new products. In addition, Vitesse is aware of smaller, privately held companies that focus on specific subsets within its range of products. These companies, individually and collectively, represent future competition for design wins and subsequent product sales.

My analysis

There have been eight different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The company has an insider ownership of 3.60%. There are two analyst buy ratings, zero neutral ratings and zero sell ratings with an average target price of $3.25. The company has a book value of -$0.33 per share. The 200-day moving average is currently at $2.20, which could be a good entry point for the stock.

Source: 2 Tech Stocks With Recent Intensive Insider Buying