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Summary

  • 3 insiders sold OmniVision'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% each.

OmniVision Technologies (NASDAQ:OVTI) engages in designing, developing, and marketing semiconductor image-sensor devices worldwide.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Howard RhodesCTOJune 5-2632,396YesNo0 shares100%
Raymond WuPresidentJune 129,803Yes & NoNo666 shares + 62,580
options
13.4%
Aurelio CisnerosSVPJune 2-359,805Yes & NoNo8,688
shares
87.3%

There have been 102,004 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

MonthInsider selling / sharesInsider buying / shares
June 2014102,0040
May 201400
April 201400
March 201441,8030
February 201400
January 201400
December 20132,0000
November 201300
October 201300
September 201300
August 201300
July 201333,5450
June 201380,3570
May 201300
April 201300
March 201335,0000
February 201300
January 20134,0000

There have been 298,709 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June 2014 has seen the most insider selling.

Financials

OmniVision reported the fiscal 2014 full-year, which ended April 30, financial results on May 29 with the following highlights:

Revenue$1.5 billion
Net income$95.0 million
Cash$450.9 million
Debt$35.8 million

The three insiders sold their shares after these results.

OmniVision has negative revenue growth currently.

Outlook

OmniVision's fiscal 2015 first-quarter guidance is as follows:

Revenue$360-$400 million
GAAP EPS$0.29-$0.49
Non-GAAP EPS$0.43-$0.63

Competition

OmniVision's competitors include Sharp (OTCPK:SHCAY), and STMicroelectronics (NYSE:STM). Here is a table comparing these companies.

CompanyOVTISHCAYSTM
Market Cap:1.24B5.31B8.19B
Qtrly Rev Growth (yoy):-0.02N/A-0.09
Revenue:1.45B28.80B7.90B
Gross Margin:0.190.180.33
EBITDA:105.56M2.29B817.00M
Operating Margin:0.050.04-0.01
Net Income:95.00M113.74M-353.00M
EPS:1.700.08-0.40
P/E:12.9740.78N/A
PEG (5 yr expected):1.13N/A8.20
P/S:0.870.181.03

OmniVision has the second-highest P/S ratio among these three companies.

Conclusion

There have been three different insiders selling OmniVision and there have not been any insiders buying OmniVision during the last 30 days. All three of these insiders decreased their holdings by more than 10% each. OmniVision has an insider ownership of 0.60%.

Before going short OmniVision, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth, and the intensive insider-selling activity.

Source: OmniVision Technologies: 3 Different Insiders Have Sold Shares This Month