Xilinx: 5 Different Insiders Have Sold Shares This Year

Feb.17.14 | About: Xilinx, Inc. (XLNX)

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%.

Xilinx (NASDAQ:XLNX) designs and develops programmable devices and associated technologies worldwide.

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Insider selling during the last 30 days

Here is a table of Xilinx' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Michael Patterson Director Feb 13 20,000 No 8,400 shares + 16,000 options 45.0%
Raja Petrakian SVP Feb 13 21,875 No 20,422 shares + 50,000 options 23.7%
Frank Tornaghi SVP Feb 12 10,000 Yes


Jon Olson CFO Feb 3 90,000 Yes 0 shares + 110,000 options 45.0%
Moshe Gavrielov CEO Jan 22 102,390 Yes 95,850 shares + 87,500 options 35.8%
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There have been 244,265 shares sold by insiders during the last 30 days. Frank Tornaghi, Jon Olson, and Moshe Gavrielov 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 Xilinx' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 141,875 0
January 2014 102,390 0
December 2013 0 0
November 2013 102,644 0
October 2013 12,000 0
September 2013 35,608 0
August 2013 24,786 0
July 2013 1,240,183 0
June 2013 18,750 0
May 2013 73,558 0
April 2013 3,640 0
March 2013 22,390 0
February 2013 48,640 0
January 2013 56,653 0
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There have been 1,883,117 shares sold, and there have been zero shares purchased by insiders since January 2013.


Xilinx reported the fiscal 2014 third-quarter, which ended December 28, financial results on January 21 with the following highlights:

Revenue $586.8 million
Net income $175.9 million
Cash $2.5 billion
Debt $934.4 million
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Xilinx' guidance for the fiscal 2014 fourth quarter is as follows:

Sales growth +2% to +6% sequentially
Gross margin ~68%
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(Source: Investor presentation)


Xilinx' competitors include Altera Corp. (NASDAQ:ALTR) and Lattice Semiconductor Corporation (NASDAQ:LSCC). Here is a table comparing these companies.

Company XLNX ALTR LSCC Industry Average (Semiconductor - Integrated Circuits)
Market Cap: 13.31B 11.05B 894.50M 275.42M
Employees: 3,329 N/A N/A N/A
Qtrly Rev Growth (yoy): 0.15 0.03 0.36 0.00
Revenue: 2.30B 1.73B 332.52M 104.49M
Gross Margin: 0.68 0.68 0.54 0.57
EBITDA: 790.73M 527.81M 50.36M 10.36M
Operating Margin: 0.31 0.27 0.09 0.04
Net Income: 604.98M 440.07M 22.32M N/A
EPS: 2.14 1.36 0.19 0.15
P/E: 23.29 25.56 40.68 39.09
PEG (5 yr expected): 2.07 3.85 1.25 1.04
P/S: 5.81 6.37 2.56 2.64
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Xilinx has the second-highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
ALTR 0 80,000
LSCC 0 168,000
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Only Xilinx has seen intensive insider selling during the last 30 days.


There have been five different insiders selling Xilinx, and there have not been any insiders buying Xilinx during the last 30 days. All five of these insiders decreased their holdings by more than 10%. Xilinx has an insider ownership of 0.10%.

Before going short Xilinx, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.