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.
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:
The stock is purchased by three or more insiders within one month.
The stock is sold by no insiders in the month of intensive purchasing.
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.
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|
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:
|Net loss||$4.0 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.
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.