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One important consideration for tech stocks is how easily the companies can pay their ongoing capital expenditures. Operating cash flow is a likely source for this payment, so the ratio of operating cash flow to capital expenditures can give an idea of whether the firm’s fixed asset expenses are reasonably covered, leaving cash to spare.

We ran a screen on tech stocks that have large ratios of trailing-twelve-month operating cash flow/capital expenditures. We then screened this universe for stocks seeing significant net insider buying over the last six months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Do you think insiders are calling it right on these names? Use this list as a starting-off point for your own analysis.

List sorted by net insider purchases as a percent of share float.

1. Motorola Solutions, Inc. (NYSE:MSI): Communication Equipment Industry. Market cap of $14.01B. TTM operating cash flow/capital expenditures at 5.02. Net insider purchases over the last six months at 17.60M, which is 6.30% of the company's 279.46M share float. It's been a rough couple of days for the stock, losing 11.02% over the last week.

2. VMware, Inc. (NYSE:VMW): Technical & System Software Industry. Market cap of $37.28B. TTM operating cash flow/capital expenditures at 5.73. Net insider purchases over the last six months at 1.62M, which is 2.02% of the company's 80.30M share float. It's been a rough couple of days for the stock, losing 12.43% over the last week.

3. Merge Healthcare Incorporated. (NASDAQ:MRGE): Healthcare Information Services Industry. Market cap of $478.65M. TTM operating cash flow/capital expenditures at 14.34. Net insider purchases over the last six months at 281.0K, which is 1.39% of the company's 20.15M share float. The stock has had a couple of great days, gaining 6.17% over the last week.

4. Dell Inc. (NASDAQ:DELL): Personal Computers Industry. Market cap of $28.29B. TTM operating cash flow/capital expenditures at 7.84. Net insider purchases over the last six months at 17.23M, which is 1.07% of the company's 1.61B share float. It's been a rough couple of days for the stock, losing 9.42% over the last week.

5. Take-Two Interactive Software Inc. (NASDAQ:TTWO): Multimedia & Graphics Software Industry. Market cap of $1.06B. TTM operating cash flow/capital expenditures at 13.96. Net insider purchases over the last six months at 458.75K, which is 0.58% of the company's 78.51M share float. Might be undervalued at current levels, with a PEG ratio at 0.91, and P/FCF ratio at 8.51. It's been a rough couple of days for the stock, losing 9.1% over the last week.

*Operating cash flow/capital expenditures data sourced from Screener.co, insider data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 5 Tech Stocks With Strong Cash Coverage and Insider Buying