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Summary

  • 3 insiders sold RF Micro Devices' stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 3 insiders decreased their holdings by more than 10%.

RF Micro Devices (NASDAQ:RFMD) engages in the design, development, manufacture, and marketing of radio frequency solutions for original equipment manufacturers and original design manufacturers in wireless and wired communications applications in the United States and internationally.

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Insider selling during the last 30 days

Here is a table of RF Micro Devices' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
William PriddyCFOApr 30-May 1201,957Yes595,730 shares25.3%
Steven CrevistonVPMay 1125,000Yes1,063,998 shares10.5%
Robert BruggeworthCEOMay 150,000Yes1,241,520 shares + 50,000 options3.7%

There have been 376,957 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 RF Micro Devices' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 2014211,9570
April 2014242,0340
March 2014582,4760
February 2014241,9310
January 201475,5340
December 201360,0000
November 201370,0980
October 2013201,8130
September 201366,6700
August 2013247,6670
July 2013168,5710
June 201360,0000
May 2013257,2760
April 201320,0000
March 201310,0000
February 201326,3790
January 201342,3790

There have been 2,584,785 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

RF Micro Devices reported the fiscal 2014 full-year, which ended March 29, financial results on April 29 with the following highlights:

Revenue$1.1 billion
Net income$12.6 million
Cash$244.0 million
Debt$87.3 million

The three insiders sold their shares after these results.

Outlook

RF Micro Devices' fiscal 2015 first-quarter guidance is as follows:

Revenue~$305 million
Non-GAAP EPS~$0.17

Competition

RF Micro Devices' competitors include Broadcom (NASDAQ:BRCM) and Skyworks Solutions (NASDAQ:SWKS). Here is a table comparing these companies.

CompanyRFMDBRCMSWKS
Market Cap:2.44B17.94B7.76B
Employees:N/A12,5504,750
Qtrly Rev Growth (yoy):-0.090.010.13
Revenue:1.15B8.24B1.90B
Gross Margin:0.350.500.44
EBITDA:100.95M1.29B513.97M
Operating Margin:0.020.110.22
Net Income:12.64M398.00M321.30M
EPS:0.040.681.68
P/E:216.2545.0224.65
PEG (5 yr expected):0.641.420.87
P/S:2.102.174.07

RF Micro Devices has the highest P/E ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
BRCM0127,835
SWKS0376,694

Only RF Micro Devices has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling RF Micro Devices, and there have not been any insiders buying RF Micro Devices during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. RF Micro Devices has an insider ownership of 1.94%.

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

Source: RF Micro Devices: 3 Different Insiders Have Sold Shares During The Last 30 Days