Unwired Planet: 3 Different Insiders Have Purchased Shares This Month

Mar.27.14 | About: Unwired Planet, (UPIP)

Summary

Three insiders purchased Unwired Planet stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

Two of these three insiders increased their holdings by more than 10%.

Unwired Planet (NASDAQ:UPIP) develops patents that allow mobile devices to connect to the Internet.

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Insider buying during the last 30 days

Here is a table of Unwired Planet's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Philip Vachon Director March 24 25,000 110,637 shares +29.2%
Michael Mulica Director March 24 100,000 487,000 shares +25.8%
Daniel Mendez EVP March 24 50,000 800,000 shares +6.7%
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There have been 175,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Unwired Planet's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2014 175,000 0
February 2014 0 0
January 2014 490,000 0
December 2013 0 0
November 2013 0 0
October 2013 1,500,000 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 2,165,000 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Unwired Planet reported the fiscal 2014 second-quarter, which ended December 30, financial results on January 30 with the following highlights:

Revenue $0
Net loss $7.3 million
Cash $51.1 million
Debt $23.8 million
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The three insiders purchased their shares after these results.

News

On March 20, Unwired Planet and Lenovo (OTCPK:LNVGY) announced that Lenovo had agreed to purchase a portfolio of patents from Unwired Planet and to take a term-based license to Unwired Planet's patent portfolio. The aggregate consideration for the combined transaction was $100 million payable in cash.

The three insiders purchased their shares after these news.

Competition

Unwired Planet's competitors include InterDigital (NASDAQ:IDCC) and VirnetX Holding Corp (NYSEMKT:VHC). Here is a table comparing these companies.

Company UPIP IDCC VHC
Market Cap: 225.56M 1.31B 677.85M
Employees: 16 290 15
Qtrly Rev Growth (yoy): N/A 0.13 34.75
Revenue: 115.00K 325.36M 2.20M
Gross Margin: N/A 0.56 1.00
EBITDA: -32.10M 118.68M -28.55M
Operating Margin: -279.88 0.27 -13.01
Net Income: -35.63M 38.17M -27.61M
EPS: -0.36 0.92 -0.54
P/E: N/A 35.16 N/A
PEG (5 yr expected): -0.38 1.30 -3.21
P/S: 1,680.51 4.11 296.18
Insider Ownership: 1.98% 0.87% 16.29%
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Unwired Planet has the second-highest insider ownership among these three companies.

Here is a table of these competitors' insider activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
IDCC 0 8,684
VHC 0 5,333
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Only Unwired Planet has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Unwired Planet, and there have not been any insiders selling Unwired Planet during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Unwired Planet has an insider ownership of 1.98%.

The three insiders purchased their shares at prices ranging from $1.97 to $2.00. I believe Unwired Planet could be a good pick below $2 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in UPIP 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.