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

May. 5.14 | About: Qorvo, Inc (QRVO)


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 (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.

Click to enlarge

Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
William Priddy CFO Apr 30-May 1 201,957 Yes 595,730 shares 25.3%
Steven Creviston VP May 1 125,000 Yes 1,063,998 shares 10.5%
Robert Bruggeworth CEO May 1 50,000 Yes 1,241,520 shares + 50,000 options 3.7%
Click to enlarge

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.

Month Insider selling / shares Insider buying / shares
May 2014 211,957 0
April 2014 242,034 0
March 2014 582,476 0
February 2014 241,931 0
January 2014 75,534 0
December 2013 60,000 0
November 2013 70,098 0
October 2013 201,813 0
September 2013 66,670 0
August 2013 247,667 0
July 2013 168,571 0
June 2013 60,000 0
May 2013 257,276 0
April 2013 20,000 0
March 2013 10,000 0
February 2013 26,379 0
January 2013 42,379 0
Click to enlarge

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.


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
Click to enlarge

The three insiders sold their shares after these results.


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

Revenue ~$305 million
Non-GAAP EPS ~$0.17
Click to enlarge


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

Market Cap: 2.44B 17.94B 7.76B
Employees: N/A 12,550 4,750
Qtrly Rev Growth (yoy): -0.09 0.01 0.13
Revenue: 1.15B 8.24B 1.90B
Gross Margin: 0.35 0.50 0.44
EBITDA: 100.95M 1.29B 513.97M
Operating Margin: 0.02 0.11 0.22
Net Income: 12.64M 398.00M 321.30M
EPS: 0.04 0.68 1.68
P/E: 216.25 45.02 24.65
PEG (5 yr expected): 0.64 1.42 0.87
P/S: 2.10 2.17 4.07
Click to enlarge

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

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

Company Insider buying / shares Insider selling / shares
BRCM 0 127,835
SWKS 0 376,694
Click to enlarge

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


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.

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.