Investors closely monitor insider buys.
It’s easy to understand why; if an insider buys, it can deliver a positive message to shareholders, indicating that they’re confident in the long-term picture of the business.
But who are insiders?
An insider is defined by Section 16 of the Security Exchange Act as an officer, director, 10% stockholder, or anyone who possesses information because of their relationship with the company.
Many strict rules apply to insiders.
Insiders can’t trade based on material nonpublic information, they must pre-clear all trades, and all transactions of the company’s stock must occur during the Window Period.
In addition, insiders have a more extended holding period than most, a critical aspect that investors should be aware of.
Three tech companies – Iridium Communications (IRDM - Free Report) , Amphenol (APH - Free Report) , and MKS Instruments (MKSI - Free Report) – have all seen recent insider activity. For those interested in trading like the insiders, let’s take a closer look at each.
Iridium Communications
Iridium Communications provides mobile voice and data communications services via satellite. The CEO recently acquired a whopping 28k shares at a total transaction value of roughly $1 million.
Back-to-back releases of worse-than-expected quarterly results have weighed on shares, as we can see illustrated below. Still, since finding a bottom in mid-November, shares have added nearly 11%, perhaps reflecting a meaningful change in trend.
IRDM shares provide tech exposure paired with a passive income stream, currently yielding a respectable 1.4% annually.
Amphenol
Amphenol designs, manufactures, and markets electrical, electronic, and fiber optic connectors, interconnect systems, antennas, sensors, sensor-based products, and coaxial and high-speed specialty cable.
In early November, a director purchased roughly 11.8k shares at a total transaction value of roughly $1 million.
The company’s shares saw notable buying pressure following its latest quarterly release, with Amphenol exceeding the Zacks Consensus EPS Estimate by more than 5% and posting a 4% sales surprise. The company also implemented a 5% boost to its quarterly dividend, undoubtedly pleasing investors.
MKS Instruments
MKS Instruments is a global provider of instruments, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of advanced manufacturing processes.
An insider recently made a splash, acquiring 2.5k shares at a total transaction value just above $170k.
Like APH, the market was impressed with MKS Instruments’ latest release, with shares moving well higher post-earnings. The company delivered a sizable 46% beat relative to the Zacks Consensus EPS Estimate and posted revenue a hair below expectations.
Analysts have become bullish on the company’s current fiscal year outlook, with the $4.14 Zacks Consensus EPS Estimate well above the $3.15 per share expected in late April.
Bottom Line
Many investors closely monitor insider buys, as they can provide a high level of confidence. After all, if an insider didn’t believe in the company’s future pathway, why would they buy?
And all three stocks above – Iridium Communications (IRDM - Free Report) , Amphenol (APH - Free Report) , and MKS Instruments (MKSI - Free Report) – have seen recent insider activity.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Investors closely monitor insider buys.
It’s easy to understand why; if an insider buys, it can deliver a positive message to shareholders, indicating that they’re confident in the long-term picture of the business.
But who are insiders?
An insider is defined by Section 16 of the Security Exchange Act as an officer, director, 10% stockholder, or anyone who possesses information because of their relationship with the company.
Many strict rules apply to insiders.
Insiders can’t trade based on material nonpublic information, they must pre-clear all trades, and all transactions of the company’s stock must occur during the Window Period.
In addition, insiders have a more extended holding period than most, a critical aspect that investors should be aware of.
Three tech companies – Iridium Communications (IRDM - Free Report) , Amphenol (APH - Free Report) , and MKS Instruments (MKSI - Free Report) – have all seen recent insider activity. For those interested in trading like the insiders, let’s take a closer look at each.
Iridium Communications
Iridium Communications provides mobile voice and data communications services via satellite. The CEO recently acquired a whopping 28k shares at a total transaction value of roughly $1 million.
Back-to-back releases of worse-than-expected quarterly results have weighed on shares, as we can see illustrated below. Still, since finding a bottom in mid-November, shares have added nearly 11%, perhaps reflecting a meaningful change in trend.
IRDM shares provide tech exposure paired with a passive income stream, currently yielding a respectable 1.4% annually.
Amphenol
Amphenol designs, manufactures, and markets electrical, electronic, and fiber optic connectors, interconnect systems, antennas, sensors, sensor-based products, and coaxial and high-speed specialty cable.
In early November, a director purchased roughly 11.8k shares at a total transaction value of roughly $1 million.
The company’s shares saw notable buying pressure following its latest quarterly release, with Amphenol exceeding the Zacks Consensus EPS Estimate by more than 5% and posting a 4% sales surprise. The company also implemented a 5% boost to its quarterly dividend, undoubtedly pleasing investors.
MKS Instruments
MKS Instruments is a global provider of instruments, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of advanced manufacturing processes.
An insider recently made a splash, acquiring 2.5k shares at a total transaction value just above $170k.
Like APH, the market was impressed with MKS Instruments’ latest release, with shares moving well higher post-earnings. The company delivered a sizable 46% beat relative to the Zacks Consensus EPS Estimate and posted revenue a hair below expectations.
Analysts have become bullish on the company’s current fiscal year outlook, with the $4.14 Zacks Consensus EPS Estimate well above the $3.15 per share expected in late April.
Bottom Line
Many investors closely monitor insider buys, as they can provide a high level of confidence. After all, if an insider didn’t believe in the company’s future pathway, why would they buy?
And all three stocks above – Iridium Communications (IRDM - Free Report) , Amphenol (APH - Free Report) , and MKS Instruments (MKSI - Free Report) – have seen recent insider activity.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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