Insiders Are Buying Axcelis Technologies

| About: Axcelis Technologies, (ACLS)

The Technology Select Sector SPDR ETF (NYSEARCA:XLK) was trading as low as $13.08 in March 2009. The index is currently trading at $32.40 or 147.7% above the low made in March 2009.

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In this article, I will feature one tech stock that has seen intensive insider buying during the last 30 days. 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%.

Axcelis Technologies (NASDAQ:ACLS) designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips worldwide.

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Insider buying by insider (last 30 days)

  • Brian Thompson purchased 20,000 shares on August 9-13 and currently holds 104,185 shares or 0.1% of the company. Brian Thompson serves as a director of the company.
  • Stephen Hardis purchased 24,148 shares on August 9-12 and currently holds 672,068 shares or 0.6% of the company. Stephen Hardis serves as a director of the company.
  • John Fletcher purchased 10,000 shares on August 8 and currently holds 94,185 shares or less than 0.1% of the company. John Fletcher serves as a director of the company.
  • William Jennings purchased 10,000 shares on August 8 and currently holds 92,185 shares or less than 0.1% of the company. William Jennings serves as a director of the company.

Insider buying by calendar month

Here is a table of Axcelis Technologies' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
August 2013 64,148 0
July 2013 0 0
June 2013 0 15,316
May 2013 0 0
April 2013 0 0
March 2013 0 18,396
February 2013 0 8,500
January 2013 0 0

There have been 64,148 shares purchased and there have been 42,212 shares sold by the insiders this year.


The company reported the second-quarter financial results on August 1 with the following highlights:

Revenue $47.5 million
Net loss $4.0 million
Cash $34.6 million


Axcelis has made numerous strategic and operational changes that through the next cycle will drive improved performance in revenue growth, in market share and in profitability. And in fact, Axcelis expects to see these initiatives result in profitability in the fourth quarter.


Axcelis' competitors include Mattson Technology (NASDAQ:MTSN). Here is a table comparing these two companies.

Company ACLS MTSN Industry Average (Semiconductor Equipment & Materials)
Market Cap: 223.18M 134.26M 284.16M
Employees: 879 323 817.00
Qtrly Rev Growth (yoy): -0.20 -0.30 0.07
Revenue: 177.49M 85.95M 167.22M
Gross Margin: 0.33 0.32 0.39
EBITDA: -24.61M -17.51M 10.03M
Operating Margin: -0.15 -0.25 0.04
Net Income: -36.54M -27.93M N/A
EPS: -0.34 -0.48 0.00
P/E: N/A N/A 23.05
PEG (5 yr expected): -0.89 -0.67 0.72
P/S: 1.20 1.55 1.63

Axcelis is trading below the industry average P/S ratio, which could explain some of the insider buying. Mattson Technology saw intensive insider buying in May, which I covered here on Seeking Alpha.


There have been four different insiders buying Axcelis and there have not been any insiders selling Axcelis during the past 30 days. Three out of these four insiders increased their holdings by more than 10%. There is one analyst buy rating, zero neutral ratings and zero sell ratings with an average price target of $3.50. Axcelis is trading at a forward P/E ratio of 11.33 and has a book value of $1.59 per share. I believe the stock could be a good pick at the book value based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ACLS 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.

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Tagged: , , , Semiconductor Equipment & Materials
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