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The stock market just had one of its worst weeks in 2012, and it now looks like the volatility is here to stay thanks to the debt crisis in Europe and global economic challenges that appear to be rising everywhere. The tech sector had been a leader for most of the 2012 market rally, but many stocks are now giving up part -- if not all -- of those gains. The sell-off in the markets has created some new tech stock bargains that even the insiders are starting to take advantage of. Here is a look at three cheap tech stocks that have seen recent and significant insider buying.

Netflix (NFLX): Shares of this name have been on a roller coaster ride for the past several months, falling from over $300 per share, and hitting a 52-week low of $62.37, made in November 2011. Netflix is seeing increased competition from other companies, and it also disappointed some customers when it decided to change its rates last year. The company recently reported earnings, with revenue coming in at $870 million and posting a loss of 8 cents per share, which was better than some analysts expected. However, the market seemed disappointed with revenue guidance of just $873 million to $895 million for next quarter, since the expectation was for $897 million. Netflix is expanding overseas, and that will keep pressure on profits this year. This stock certainly looks cheap considering it traded over $300 per share less than a year ago, but the rebound potential will depend on how well the company executes. At least one insider has turned bullish, Richard N. Barton, a director, bought 6,000 shares on April 25, 2012, in a transaction valued at about $510,000.

Here are some key points for Netflix:

  • Current share price: $73.14
  • 52-week range: $62.37 to $304.79
  • Earnings estimates for 2012: 9 cents per share
  • Earnings estimates for 2013: $2.18 per share
  • Annual dividend: none

Akamai Technologies (AKAM): Shares of this name plunged from about $39 per share to $33 after the company reported disappointing financial results. This company offers technology that helps to speed up and deliver website content. For the first quarter of 2012, it earned $43 million, or 24 cents a share. This was below earnings of $51 million for the same quarter last year. The company also said the CEO would be departing the company and that it would continue to buy back shares. Akamai has a strong balance sheet with about $404 million in cash and no long-term debt. This will allow the company to buy back shares and invest for future growth. At least one insider is taking advantage of the lower stock price. Leighton F. Thomson, an officer, bought 100,000 shares on April 27, 2012, in a transaction valued at about $3,314,000.

Here are some key points for Akamai:

  • Current share price: $32.56
  • 52-week range: $18.25 to $39.14
  • Earnings estimates for 2012: $1.63 per share
  • Earnings estimates for 2013: $1.86 per share
  • Annual dividend: none

Sprint Nextel (S): Shares of this name are trading near 52-week lows as this company reports losses and continues to face significant competition. The company recently reported a loss of $863 million and a diluted net loss of 29 cents per share for the first quarter of 2012. This compares to a net loss of $439 million and a diluted net loss of 15 cents per share in the first quarter of 2011. These results seem to be weighing on the shares, which now trade for less than half of the 52-week high. This looks to be cheap now, but I probably would just consider buying dips and selling rallies due to the speculative nature of these shares. Insiders, however, have been buying recently, and they might be invested for the long-haul: Joseph J. Euteneuer, an officer, bought 100,000 shares on April 30, 2012, in a transaction valued at about $254,999. Also, Daniel Hess, the CEO, bought 50,000 shares on April 24, 2012, in a transaction valued at about $119,000.

Here are some key points for Sprint:

  • Current share price: $2.36
  • 52-week range: $2.10 to $6.45
  • Earnings estimates for 2012: $1.54 loss per share
  • Earnings estimates for 2013: $1.08 loss per share
  • Annual dividend: none

Data is sourced from Yahoo Finance.

Disclaimer: No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Source: 3 Cheap Tech Stocks With New Insider Buying