Insiders reported on Monday that they bought and sold stock in over 400 separate transactions in over 210 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime after mid-week last week. We culled through these 400 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 on Monday 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):
AT&T Inc. (NYSE:T): AT&T is a global telecommunications services provider, offering local exchange, long distance, network access and wireless services to consumers, businesses and other service providers. On Monday, two insiders filed SEC Forms 4 indicating that they sold a total of 254,367 shares for $7.6 million. Of these, the majority were sold by President Rafael De La Vega (216,443 shares), resulting from the exercise of options, and the remaining were sold by Group President Forrest Miller (37,924 shares). This is in addition to the 0.25 million shares sale by AT&T insiders that we reported just last week. AT&T has been almost flat during the last decade, and it currently trades at 11-12 forward P/E and 1.6 P/B compared to averages of 14.6 and 1.7 for the diversified communications group.
LSI Corp. (NASDAQ:LSI): LSI is a designer of complex high-performance ICs and storage systems. Its silicon-to-systems solutions are at the heart of products that create, store, consume and transport digital information. Its ICs are used in hard disk and solid state drives, high-speed communications and storage systems, computer servers and PCs. On Monday, CEO Abhijit Talwalkar filed SEC Form 4 indicating that he exercised options and sold the resulting 1 million shares for $8 million, pursuant to a 10b5-1 plan, and ended with 0.51 million shares after the sale. This is in addition to the 0.22 million shares sale by LSI insiders that we reported just last week. In comparison, insiders sold a total of 2.7 million shares in the past year. LSI has mounted a strong rally since the beginning of the year, and is up over 50% since mid-December. It gapped up about two weeks ago after reporting strong Q4 report, and is currently trading at 11 forward P/E and 3.5 P/B compared to averages of 17.4 and 1.9 for its peers in the electronic components semiconductor group.
Skyworks Solutions Inc. (NASDAQ:SWKS): SWKS is the industry's leading wireless semiconductor company focused on radio frequency (RF) and semiconductor solutions for mobile communications applications. These RF semiconductors are essential for 3G and 4G platforms, and the company continues to benefit from the ongoing explosive growth in the smart phone market, a trend that is likely to last many years as smart phones gain market share worldwide. On Monday, three insiders filed SEC Forms 4 indicating that they sold a total of 31,444 shares for $0.73 million. The sellers included VP Mark Tremallo (17,500 shares), VP George Levan (12,644 shares), VP Donald Palette (1,300 shares). In comparison, insiders sold a total of 0.16 million shares in the past six months. SWKS has been in a strong rally mode recently, up almost 50% YTD, aided by a strong Q1 (December quarter) that it reported just over two weeks ago. It trades at a current 12.0 P/E on a TTM basis and at a forward 11-12 P/E, about mid-range based on its historic range. Meanwhile, earnings have increased from 69c in 2009 to $1.89 in 2011 and are projected to increase to $2.05 in 2013.
Qualcomm Inc. (NASDAQ:QCOM): QCOM is a designer of CDMA-based, RF and power management ICs for system software used in wireless handsets, modem cards and networks. On Monday, three insiders filed SEC Forms 4 indicating they exercised options and sold a total 0.25 million shares, pursuant to 10b5-1 plans, for $15.2 million. The sellers included EVP Derek Aberle (206,250 shares), Chairman & CEO Paul Jacobs (22,000 shares), and Director Raymond Dittamore (20,000 shares). This is on top of the 0.13 million shares that we reported insiders sold just last week. In comparison, QCOM just last week, on Wednesday, reported an outstanding Q4, beating revenue ($4.68 billion v/s $4.58 billion) and earnings (97c v/s 90c) estimates, and guiding next quarter revenues and earnings higher; the stock has broken out of a long-term consolidation pattern and is currently trading at almost twelve-year highs at 14-15 forward P/E and 3.8 P/B compared to averages of 39.0 and 3.3 for its peers in the wireless equipment group.
OCZ Technology Group (NASDAQ:OCZ): OCZ provides solid state drives (SSDs) used in high-performance storage and server systems. In addition, OCZ provides other high performance components for computing devices and systems, including thermal management solutions, AC/DC switching PSUs and computer gaming solutions. On Monday, CEO Ryan Peterson filed SEC Form 4 indicating that he sold 50,000 shares for $0.46 million. In comparison, insiders sold 0.64 million shares in the past year.
Teradyne Inc. (NYSE:TER): TER is a manufacturer of automatic test equipment products and services worldwide for the automotive, communications, consumer, computer and electronic game markets. On Monday, CFO Gregory Beecher filed SEC Form 4 indicating that he exercised options to acquire 67,424 shares and sold those and an additional 14,161 shares for $1.38 million. This is in addition to the 86,757 shares that we reported insiders sold just last week. TER reported a good Q4 almost two weeks ago, on January 25th, beating analyst revenue ($297 million v/s $285 million) and earnings (16c v/s 12c) estimates; its shares trade at 9-10 forward P/E and 2.1 P/B compared to averages of 15.0 and 2.2 for its peers in the electronic test equipment group, while earnings are projected to rise from $1.39 in 2011 to $1.73 in 2012 at a 11.6% annual growth rate.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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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