TriQuint Semiconductor: 3 Different Insiders Have Sold Shares This Month

Apr.30.14 | About: Qorvo, Inc (QRVO)

Summary

Three insiders sold TriQuint's stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

TriQuint Semiconductor (TQNT) provides a portfolio of radio frequency solutions for mobile device, networks infrastructure, and defense and aerospace markets worldwide.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Scott Gibson Director April 28 117,552 Yes 6,350 shares 94.9%
Timothy Dunn VP April 25 592,500 Yes 11,300 shares + 27,500 options 93.9%
Deborah Burke VP April 24 19,305 Yes 16,811 shares 53.5%
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There have been 729,357 shares sold by insiders during the last 30 days. All these shares were sold 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 TriQuint's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 729,357 0
March 2014 277,815 0
February 2014 38,000 0
January 2014 48,000 0
December 2013 60,000 0
November 2013 48,000 0
October 2013 53,611 0
September 2013 48,000 0
August 2013 20,000 0
July 2013 15,000 0
June 2013 0 0
May 2013 10,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 13,500
January 2013 0 0
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There have been 1,347,783 shares sold, and there have been 13,500 shares purchased by insiders since January 2013. The month of April 2014 has seen the most insider selling.

Financials

TriQuint reported the first-quarter financial results on April 23 with the following highlights:

Revenue $177.6 million
Net loss $19.1 million
Cash $163.5 million
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The three insiders sold their shares after these results.

Outlook

TriQuint's second-quarter guidance is as follows:

Revenue $215-$225 million
Non-GAAP gross margin 37%-38%
Non-GAAP net income $0.06-$0.08 per share
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Competition

TriQuint's competitors include Avago Technologies (NASDAQ:AVGO), and Raytheon (NYSE:RTN). Here is a table comparing these companies.

Company TQNT AVGO RTN
Market Cap: 2.34B 15.28B 29.91B
Employees: 3,109 4,800 63,000
Qtrly Rev Growth (yoy): 0.15 0.23 -0.06
Revenue: 892.88M 2.65B 23.34B
Gross Margin: 0.32 0.51 0.22
EBITDA: 92.18M 806.00M 3.42B
Operating Margin: -0.02 0.23 0.13
Net Income: -38.01M 561.00M 1.99B
EPS: -0.24 2.22 6.44
P/E: N/A 27.57 15.15
PEG (5 yr expected): 1.73 1.17 1.16
P/S: 2.48 5.74 1.29
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TriQuint has the highest PEG ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
AVGO 0 265,791
RTN 0 59,988
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Only TriQuint has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling TriQuint, and there have not been any insiders buying TriQuint during the last 30 days. All three of these insiders decreased their holdings by more than 10%. TriQuint has an insider ownership of 8.52%.

Before going short TriQuint, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high PEG ratio, negative earnings, 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.