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:
- The stock was sold by three or more insiders within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- At least two sellers decreased their holdings by more than 10%.
Microsemi Corporation (MSCC) engages in the design, manufacture, and marketing of analog and mixed-signal integrated circuits primarily in the United States, Europe, and Asia.
Insider selling during the last 30 days
Here is a table of Microsemi's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Paul Pickle||EVP||Oct 16-23||30,001||Yes||63,333 shares||32.1%|
|Dennis Leibel||Director||Oct 16||3,750||Yes||33,872 shares + 59,750 options||3.9%|
|Ralph Brandi||EVP||Sep 27-Oct 15||66,833||Yes||65,000 shares + 271,666 options||16.6%|
|Steven Litchfield||EVP||Sep 27-Oct 14||32,530||Yes||58,900 shares + 255,000 options||9.4%|
|Thomas Anderson||Director||Oct 9||1,000||Yes||13,616 shares||6.9%|
|John Hohener||CFO||Sep 27-Oct 9||33,600||Yes||63,970 shares||34.4%|
|James Peterson||CEO||Sep 27-Oct 9||103,333||Yes||236,963 shares||30.4%|
|David Goren||SVP||Sep 27-Oct 9||25,600||Yes||38,600 shares||39.9%|
There have been 296,647 shares sold by insiders during the last 30 days. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Microsemi's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 511,846 shares sold and there have been zero shares purchased by insiders this year. The month of September has seen the most insider selling this year.
Microsemi reported the fiscal 2013 third-quarter, which ended June 30, financial results on July 25 with the following highlights:
|Net income||$18.3 million|
Microsemi expects net sales in the fourth quarter of fiscal year 2013 to increase 2 percent to 4 percent, sequentially, and expects non-GAAP diluted earnings per share of between $0.51 and $0.55.
Microsemi has the second-lowest P/S ratio among these four companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Microsemi has seen intensive insider selling during the past 30 days.
There have been eight different insiders selling Microsemi and there have not been any insiders buying Microsemi during the past 30 days. Five of these eight insiders decreased their holdings by more than 10%. Microsemi has an insider ownership of 0.70%.
Microsemi is trading at a P/E ratio of 54.62 and a forward P/E ratio of 10.14. The company has a book value of $11.09 per share. Before entering short Microsemi, 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.