Insiders reported last week, Wednesday through Friday, that they bought and sold stock in over 540 separate transactions in over 300 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime after the Thursday of the week prior to last week. We culled through these 540 or so insider buys and sells (based on SEC Forms 3, 4, and 5 filings), as part of our daily and weekly coverage of insider trades, and present here the most notable trades reported last week in the technology sector; notable based on the dollar amount sold, the number of insiders selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock (for more info on how to interpret insider trades, please refer to the end of this article):
Jabil Circuit Inc. (JBL): JBL is a contract manufacturer of electronics for the aerospace, automotive, computing, consumer, medical and telecom markets. On Thursday and Friday, four insiders filed SEC Forms 4 indicating that they sold a total of 125,010 shares for $2.8 million. This included Director William Morean (40,400 shares) and Corporate Secretary & General Counsel Robert Paver (62,773 shares) reporting on Friday, both pursuant to 10b5-1 plans, and then EVP Hartmut Liebel (11,837 shares), and COO Mark Mondello (10,000 shares) reporting on Thursday. Overall, during the past year, JBL insiders have sold 2.2 million shares. JBL trades at a discount 7-8 forward P/E and 2.5 P/B compared to averages of 11.5 and 1.4 for its peers in the electronic manufacturing services group, while earnings are projected to rise at a respectable 11.7% annual rate from $2.34 in 2011 to $2.92 in 2013.
KLA Tencor Corp. (KLAC): KLAC is a provider of process control and yield management solutions for the semiconductor, LED, nano-electronics, data storage and solar markets. On Friday, two insiders filed SEC Forms 4 indicating that they sold a total of 30,588 shares for $1.5 million (with 760 of those shares resulting from the exercise of options), including CEO Richard Wallace (16,662 shares) and SVP & Chief Accounting Officer Virendra Kirloskar (13,926 shares), both pursuant to 10b5-1 plans. Overall, insiders sold a total of 52,599 shares in the past three months, and 0.25 million shares in the past year. KLAC trades at a discount 11-12 forward P/E and 2.9 P/B compared to averages of 14.0 and 2.6 for its peers in the semiconductor equipment wafer fabrication group, while earnings are projected to fall from $4.91 in 2011 to $4.34 in 2013.
Novellus Systems Inc. (NVLS): NVLS manufactures thin dielectric and metal film deposition equipment, as well as equipment used in surface preparation and ultraviolet thermal processing systems. On Friday, three insiders filed SEC Forms 4 indicating that they exercised options sold the resulting total of 194,725 shares for $8.8 million. This included CEO Richard Hill (164,725 shares), EVP Fusen Chen (25,000 shares) and VP & General Counsel Andrew Gottlieb (5,000 shares), all pursuant to 10b5-1 plans. Overall, insiders sold a total of 1.7 million shares in the past year. NVLS last month, on December 14th, entered into a definitive merger agreement to be acquired by Lam Research Corp. (LRCX) at a near 20% premium.
Xilinx Inc. (XLNX): XLNX is a designer of field programmable gate arrays and complex programmable logic devices. On Thursday and Friday, insiders CEO Moshe Gavrielov and SVP Vincent Ratford filed SEC Forms 4 indicating that they exercised options and sold the resulting 42,250 shares for $1.4 million, all under 10b5-1 plans. Overall, insiders sold a total of 0.5 million shares in the past year. XLNX shares surged last week on positive results from its peer Linear Technology (LLTC), and its shares currently trade at 18-19 forward P/E and 3.6 P/B compared to averages of 13.3 and 3.4 for its peers in programmable logic semiconductor group, while earnings are projected to fall from $2.39 in 2011 to $1.96 in 2013.
Seagate Technology (STX): STX manufactures hard disk drives for the enterprise, desktop, mobile computing, and consumer electronics markets. On Thursday and Friday, four insiders filed SEC Forms 4 indicating that they sold 0.74 million shares for $14.8 million under 10b5-1 plans, with 110,000 of those shares acquired by exercising of options. The sellers included Chairman & CEO Stephen Luczo (650,956 shares), EVP Robert Whitmore (50,000 shares), EVP William Mosley (20,000 shares), and EVP Kenneth Massaroni (20,000 shares). This is on top of the 286,666 shares that we reported just last week that insiders sold, so that insiders have reported selling a total of 1.03 million shares for $20.1 million just in the past two weeks. In comparison, insiders have sold a total of 3.68 million shares in the past year. The strong pick-up in selling has coincided with the recent run-up in the stock in the last two to three weeks after the company announced strong guidance on January 4th, stating that it expected Q2 (December 2011) revenues at $3.1-$3.2 billion and Q3 (March 2012) revenues at $4.2-$4.5 billion versus the consensus estimates of $2.8 billion and $3.8 billion respectively.
On top of these, some additional large insider trades last week included a $2.3 million sale reported Wednesday and Friday, pursuant to 10b5-1 plans, by three insiders (Director Reed Hundt, SVP William Holt, and CFO Stacy Smith) at Intel Corp. (INTC); a $1.3 million sale reported Thursday, pursuant to a 10b5-1 plan, by SVP of Business Development Lance Lissner at specialized semiconductor manufacturing company Altera Corp. (ALTR); a $3.6 million sale reported Wednesday, pursuant to 10b5-1 plans, by COO Steven Mollenkopf and Director Irwin Jacobs at Qualcomm Inc. (QCOM), a designer of CDMA-based, RF, and power management IC's for system software used in wireless handsets, modem cards, and networks; a $1.0 million sale reported Friday by CEO Constantine Macricostas and COO Soo Hong Jeong, both pursuant to 10b5-1 plans, at leading worldwide provider of photomasks used in the fabrication of semiconductors, micro-electronics and flat panel displays, Photronics Inc. (PLAB); a $1.1 million sale reported Friday, pursuant to a 10b5-1 plan, by four insiders (CFO Gregory Graves, SVP John Murphy, VP Todd Edlund, and VP William Shaner) at Entegris Inc. (ENTG), a leading provider of materials management solutions to the semiconductor and disk manufacturing markets; a $3.1 million sale reported Thursday, pursuant to a 10b5-1 plan, by CFO Peter Wilver at Thermo Fisher Scientific (TMO), a provider of analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, discovery and diagnostics; a $1.3 million sale reported Wednesday and Thursday, pursuant to a 10b5-1 plan, by CFO Graham Smith at on-demand customer relationship management software application and services provider Salesforce.com (CRM); a $2.2 million sale reported Thursday, pursuant to a 10b5-1 plan, by SVP of Global Operations Boon Ooi at Avago Technologies Ltd. (AVGO), a Singaporean designer of analog ICs for telecom, industrial, automotive, and computing markets; a $4.0 million sale reported Friday, pursuant to a 10b5-1 plan, by Chairman & CEO Frank Coyne at leading provider of risk assessment solutions Verisk Analytics (VRSK); a $1.3 million sale reported Friday, most under 10b5-1 plans, by CEO Steven Berglund and VP Bryn Fosburgh, at GPS, laser and optics-based advanced positioning technologies provider Trimble Navigation Ltd. (TRMB); and a $3.5 million sale reported Thursday, pursuant to 10b5-1 plans, by CEO David Alberga and President Matthew Landa at technology and media company The Active Network Inc. (ACTV) that powers the largest network of organizations, activities and people that help event organizers connect with a large base of potential participants.
Credit: Fundamental data in this article were based on SEC filings, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
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