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Summary

  • 3 insiders sold Fairchild Semiconductor 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%.

Fairchild Semiconductor International (NASDAQ:FCS) designs, develops, manufactures, and sells power analog, power discrete, and non-power semiconductor solutions worldwide.

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Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Paul DelvaSVPMay 936,000No46,384 shares43.7%
Anthony LearDirectorMay 84,900Yes10,000 shares32.9%
Kevin LondonSVPApril 2420,000No19,428 shares50.7%

There have been 60,900 shares sold by insiders during the last 30 days. Anthony Lear 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 Fairchild Semiconductor's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201440,9000
April 201420,0000
March 2014109,7890
February 201400
January 201400
December 201315,0000
November 201317,0000
October 201300
September 201349,9320
August 2013020,000
July 201300
June 201300
May 20133,1360
April 201300
March 201300
February 201310,0000
January 2013125,2740

There have been 391,031 shares sold, and there have been 20,000 shares purchased by insiders since January 2013.

Financials

Fairchild Semiconductor reported the first-quarter financial results on April 17 with the following highlights:

Revenue$344.1 million
Net loss$9.3 million
Cash$316.0 million
Debt$200.1 million

The three insiders sold their shares after these results.

Outlook

Fairchild Semiconductor's second-quarter guidance is as follows:

Revenue$355-$375 million
Adjusted gross margin31%-32%

Competition

Fairchild Semiconductor's competitors include Analog Devices (NASDAQ:ADI), NXP Semiconductors NV (NASDAQ:NXPI), and Texas Instruments (NASDAQ:TXN). Here is a table comparing these companies.

CompanyFCSADINXPITXN
Market Cap:1.67B16.33B15.82B50.73B
Employees:8,6599,10026,21432,209
Qtrly Rev Growth (yoy):0.000.010.150.03
Revenue:1.41B2.64B4.98B12.30B
Gross Margin:0.310.650.460.54
EBITDA:177.50M908.12M1.22B4.44B
Operating Margin:0.030.300.150.26
Net Income:-3.80M694.85M472.00M2.25B
EPS:-0.032.201.842.03
P/E:N/A23.7734.0823.11
PEG (5 yr expected):5.151.920.401.88
P/S:1.156.073.024.02

Fairchild Semiconductor has the highest PEG ratio among these four companies.

Here is a table of these competitors' insider activities during the last 30 days.

CompanyInsider buying / sharesInsider selling / shares
ADI017,140
NXPIN/AN/A
TXN0829,125

Texas Instruments has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Fairchild Semiconductor, and there have not been any insiders buying Fairchild Semiconductor during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Fairchild Semiconductor has an insider ownership of 0.68%.

Fairchild Semiconductor has a $9 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $9 price target. I would place a stop loss at $16, which is the two-year high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high PEG ratio, and the intensive insider-selling activity.

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Source: Fairchild Semiconductor: 3 Different Insiders Have Sold Shares During The Last 30 Days