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In this article, I will feature one tech stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Skyworks Solutions (NASDAQ:SWKS) offers analog and mixed signal semiconductors worldwide.

(click to enlarge)

Insider selling during the last 30 days

  • David Aldrich sold 68,000 shares on August 21 - September 18 pursuant to a Rule 10b5-1 trading plan. David Aldrich currently holds 413,117 shares and 170,000 options or 0.3% of the company. David Aldrich is president and chief executive officer for Skyworks Solutions. David Aldrich decreased his holdings by 10.4% during the last 30 days.
  • Kevin Beebe sold 60,000 shares on August 28 and currently holds 56,715 shares or less than 0.1% of the company. Kevin Beebe serves as a director of the company. Kevin Beebe decreased his holdings by 51.4% during the last 30 days.
  • Mark Tremallo sold 13,177 shares on August 20-29 pursuant to a Rule 10b5-1 trading plan. Mark Tremallo currently holds 52,829 shares or less than 0.1% of the company. Mark Tremallo is vice president, general counsel and secretary for Skyworks Solutions. Mark Tremallo decreased his holdings by 20.0% during the last 30 days.
  • George LeVan sold 2,538 shares on August 29 pursuant to a Rule 10b5-1 trading plan. George LeVan currently holds 56,761 shares or less than 0.1% of the company. George LeVan is vice president of human resources for Skyworks Solutions. George LeVan decreased his holdings by 4.3% during the last 30 days.
  • Bruce Freyman sold 7,198 shares on August 29 pursuant to a Rule 10b5-1 trading plan. Bruce Freyman currently holds 75,599 shares or less than 0.1% of the company. Bruce Freyman is senior vice president of worldwide operations for Skyworks Solutions. Bruce Freyman decreased his holdings by 8.7% during the last 30 days.
  • Donald Palette sold 37,528 shares on August 28 pursuant to a Rule 10b5-1 trading plan. Donald Palette currently holds 88,767 shares or less than 0.1% of the company. Donald Palette is vice president and chief financial officer for Skyworks Solutions. Donald Palette decreased his holdings by 29.7% during the last 30 days.
  • Liam Griffin sold 23,444 shares on August 23-29 pursuant to a Rule 10b5-1 trading plan. Liam Griffin currently holds 74,856 shares or less than 0.1% of the company. Liam Griffin is executive vice president and corporate general manager. Liam Griffin decreased his holdings by 23.8% during the last 30 days.

Insider selling by calendar month

Here is a table of Skyworks Solutions' insider-trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
September 201354,0000
August 2013161,8850
July 201328,0000
June 201328,0000
May 201349,8280
April 201300
March 201300
February 201300
January 201300

There have been 321,713 shares sold and there have been zero shares purchased by insiders this year.

Financials

Skyworks Solutions reported the fiscal 2013 third-quarter, which ended June 28, financial results on July 18 with the following highlights:

Revenue$436.1 million
Net income$65.7 million
Cash$400.3 million

Outlook

For the current quarter, Skyworks Solutions anticipates revenue of $475 million, gross margin expansion to the 44.0 to 44.5 percent range and $0.62 of diluted earnings per share, each on a non-GAAP basis.

Competition

Skyworks Solutions competes with United States and international semiconductor manufacturers of all sizes in terms of resources and market share, including Analog Devices (NASDAQ:ADI), Avago Technologies (NASDAQ:AVGO), Hittite Microwave (NASDAQ:HITT), Linear Technologies (NASDAQ:LLTC), Maxim Integrated Products (NASDAQ:MXIM), Peregrine Semiconductor (NASDAQ:PSMI), RF Micro Devices (NASDAQ:RFMD), and Triquint Semiconductor (NASDAQ:TQNT).

Here is a table of these competitors' insider-trading activities during the last six months.

CompanyInsider buying / sharesInsider selling / shares
ADI0471,872
AVGO0174,314
HITT077,696
LLTC0336,710
MXIM0149,020
PSMI10,000674,837
RFMD0416,034
TQNT069,000

Only Peregrine Semiconductor has seen insider buying during the last six months.

Conclusion

There have been seven different insiders selling Skyworks Solutions and there have not been any insiders buying Skyworks Solutions during the past 30 days. Five of these seven insiders decreased their holdings by more than 10%. Skyworks Solutions has an insider ownership of 0.60%.

Skyworks Solutions is trading at a P/E ratio of 19.39 and a forward P/E ratio of 10.03. Skyworks Solutions has a book value of $10.72 per share.

Before entering short Skyworks Solutions, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider selling activity.

Source: Insiders Are Selling Skyworks Solutions, Matching Trend Among Industry Competitors