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%.
Skyworks Solutions (SWKS) offers analog and mixed signal semiconductors worldwide.
Insider selling during the last 30 days
Here is a table of Skyworks' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|David Aldrich||CEO||Jan 2-29||225,919||Yes||332,723 shares||40.4%|
|Timothy Furey||Director||Jan 21||7,500||No||44,215 shares||14.5%|
|Liam Griffin||EVP||Jan 17||1,275||Yes|
There have been 234,694 shares sold by insiders during the last 30 days. David Aldrich and Liam Griffin sold shares pursuant to a Rule 10b5-1 plan. 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 Skyworks' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,118,397 shares sold, and there have been zero shares purchased by insiders since January 2013.
Skyworks reported the fiscal 2014 first-quarter, which ended December 27, financial results on January 16 with the following highlights:
|Net income||$94.5 million|
Skyworks' fiscal 2014 second-quarter guidance is as follows:
|Qtrly Rev Growth (yoy):||0.13||-0.02||0.19||0.02|
|PEG (5 yr expected):||0.70||2.20||1.08||1.86|
Skyworks has the lowest gross margin among these four companies.
Here is a table of these competitors' insider-trading activities during the last 12 months.
|Company||Insider buying / shares||Insider selling / shares|
Analog Devices has also seen intensive insider selling during the last 30 days.
There have been three different insiders selling Skyworks, and there have not been any insiders buying Skyworks during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Skyworks has an insider ownership of 0.40%.
Before going short Skyworks, 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.