12 Technology Stocks Insiders Are Bullish About

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Includes: AAPL, BMC, FTR, GLW, HPQ, NVDA, QCOM, RAX, S, TRMB, VMW, WIN
by: Insider Monkey

We track corporate insiders because generally they have an edge over ordinary investors. Insiders sometimes have material non-public information about their companies. They can benefit from such information even if they do not act directly on the information, which is prohibited by law. If they know their company’s earning is worse than expected and this bearish news is going to be released, they will postpone their purchases of the company’s stock. By doing so, they did not violate the law but they can outperform other investors. Even when they do not have material non-public information, they always know their companies and industries better than ordinary investors. Therefore, we believe that by imitating the investments of corporate insiders, investors are more likely to beat the market over the long term.

Below we compiled a list of technology stocks insiders are bullish about. All companies have market caps of at least $5 billion and were purchased by at least one insider during the past three months. The market data is sourced from Finviz.

Ticker

Company

Insiders

AAPL

Apple Inc.

1

QCOM

QUALCOMM Incorporated

1

HPQ

Hewlett-Packard Company

1

VMW

VMware, Inc.

1

GLW

Corning Inc.

1

NVDA

NVIDIA Corporation

1

S

Sprint Nextel Corp.

1

WIN

Windstream Corporation

1

BMC

BMC Software Inc.

1

RAX

Rackspace Hosting, Inc.

1

TRMB

Trimble Navigation Limited

1

FTR

Frontier Communications Corporation

3

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Apple Inc. (NASDAQ:AAPL): AAPL was purchased by one insider during the past three months. On November 29, Robert Iger purchased 1,370 shares at $374.49 and another 1,300 shares at $375.33. The stock is currently trading at $393.24 per share. It has a market cap of $363B and a P/E ratio of 14.12. Ken Griffin’s Citadel Investment Group had several billions invested in AAPL shares and options. D. E. Shaw, Rob Citrone, Stephen Mandel, Chase Coleman and many other famous hedge fund managers were also bullish about AAPL.

Qualcomm (NASDAQ:QCOM): Qualcomm produces digital wireless telecommunications products. QCOM was purchased by one insider during the past three months. Francisco Ros, director at Qualcomm, purchased 275 shares at $53.7867 on November 28. Ros also bought 200 shares at $49.3167 on September 2. The stock is currently trading at $54.94. It has a market cap of $91B and a P/E ratio of 19.95. Stephen Mandel’s Lone Pine Capital had $350+ million invested in QCOM.

Hewlett-Packard Company (NYSE:HPQ): Hewlett-Packard provides technologies and software solutions to individuals and institutions. It was bought by one insider in the past three months. John Hammergren purchased 1,000 shares at $28.2075 on December 2. Now HPQ is trading at $28.31. It has a market cap of $55.0B and a P/E ratio of 8.46. Seth Klarman’s Baupost Group invested $466 million in HPQ shares.

VMware, Inc. (NYSE:VMW): VMware provides virtualization solutions from desktop to data center. VMW was bought by one insider in the past three months. A large shareholder of VMware, EMC Corp, bought 15,600 shares at $96.0942 on December 7. EMC Corp also bought 15,500 shares at $96.9394 on December 6 and 15,400 shares at $97.2738 on December 5. VMW is now trading at $96.33. It has a market cap of $40.1B and a P/E ratio of 63.36. Jim Simons’ Renaissance Technologies invested $67 million in VMW.

Corning Inc. (NYSE:GLW): Corning has five business segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences. GLW was purchased by one insider during the past three months. On October 27, John Canning purchased 30,000 shares at $15.4 per share. The stock is currently trading at $13.79 per share. It has a market cap of $21.2B and a P/E ratio of 6.41. Lee Ainslie is also bullish about GLW. His Maverick Capital invested $300+ million in GLW shares at the end of September.

NVIDIA Corporation (NASDAQ:NVDA): Nvidia provides visual computing technologies. NVDA was purchased by one insider during the past three months. Brooke Seawell purchased 100,000 shares at $11.91 on October 3. The stock is currently trading at $14.69 per share. It has a market cap of $9.0B and a P/E ratio of 14.12. Cliff Asness’ AQR Capital Management invested $11 million in NVDA.

Sprint Nextel Corp. (NYSE:S): Sprint offers communications products and services. S was purchased by one insider during the past three months. Daniel Hesse purchased 100,000 shares at $2.8158 on November 9. The stock is currently trading at $2.43 per share. It has a market cap of $7.3B. David Einhorn’s Greenlight Capital had $200+ million invested in Sprint.

Insiders are also bullish about Windstream Corporation (NASDAQ:WIN), BMC Software Inc (NASDAQ:BMC), Rackspace Hosting, Inc (NYSE:RAX), Trimble Navigation Limited (NASDAQ:TRMB), and Frontier Communications Corporation (NYSE:FTR). We think technology stocks are undervalued as a sector and we strongly urge investors to do an in-depth analysis of the technology stocks that insiders are bullish about for their own portfolio.



Disclosure: I am long FTR.