Wish you could know what management really thought about their companies?
One great way for an inside look is to consider the stock buying trends of company insiders. Companies with significant net buying from their insiders (i.e. members of the board and upper management) are viewed favorably by analysts because the buying indicates that insiders who know more about their companies than anybody are bullish about their employers.
We ran a screen on the semiconductor industry for companies seeing the most 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.
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Do you think these stocks will outperform like insiders expect? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Exar Corp. (NYSE:EXAR): A fabless semiconductor company, together with its subsidiaries, engages in the design, contract manufacture and sale of silicon, software and subsystem solutions for industrial, telecom, networking and storage applications. Market cap of $295.30M. Net insider shares purchased over the last six months at 2.18M, which is 5.79% of the company's 37.65M share float. The stock has had a couple of great days, gaining 5.78% over the last week.
2. MoSys, Inc. (NASDAQ:MOSY): Designs, develops, markets and licenses embedded memory intellectual property (IP) used by the semiconductor industry and communications, networking and storage equipment manufacturers. Market cap of $108.53M. Net insider shares purchased over the last six months at 505.00K, which is 1.88% of the company's 26.90M share float. The stock is a short squeeze candidate, with a short float at 8.32% (equivalent to 33.06 days of average volume). It has been a rough couple of days for the stock, losing 7.52% over the last week.
3. TranSwitch Corp. (TXCC): Designs, develops and supplies semiconductor and intellectual property solutions for voice, data and video communications equipment. Market cap of $93.42M. Net insider shares purchased over the last six months at 422.30K, which is 1.86% of the company's 22.67M share float. The stock has had a good month, gaining 45.02%.
4. API Technologies Corp. (NASDAQ:ATNY): Engages in the design, development and manufacture of systems, subsystems, RF and secure communications solutions for defense, aerospace, medical, industrial and commercial applications. Market cap of $180.08M. Net insider shares purchased over the last six months at 163.17K, which is 0.69% of the company's 23.53M share float. The stock has performed poorly over the last month, losing 12.7%.
*Insider data sourced from Yahoo Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.