Bullish Insiders: Semiconductor Stocks With Insider Buying

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(List compiled by Andrew Dominguez. Data sourced from Finviz and Yahoo! Finance.)

Economic sluggishness in the US and the debt debacle in Europe have investors worried about decreasing consumer demand

The PC industry, in particular, is expected to see weaker-than-usual growth and revenue figures as consumers are expected to hold off on PC purchases, either because they are strapped for cash or because they are diverting their cash to purchases of tablets and smartphones.

As a result of slowing PC sales growth, investors are also expecting subpar performance from semiconductor (computer chip) manufacturers who could see orders for their chipsets decrease. This expected slowdown is adding to the burden of the typically weak mid-year PC shopping season (consumers tend to spend more on computers at the end of the summer back-to-school season or during the holiday season), reports Noel Randewich of Reuters.

Industry leader Intel believes that emerging markets could support double-digit PC growth, although investors and analysts seem skeptical, according to Randewich.

"Even if they end up hitting that bullish guidance, we're in a condition where the market doesn't believe it… Everyone says it's just a matter of time before Intel cuts numbers, so they're not going to buy this stock until expectations are low," Doug Freedman of Gleacher & Co. told Reuters.

Investors might also be expecting a shift in market shares as tablet computer and smartphone sales begin to cannibalize PC sales, a segment of the market dominated by ARM Holdings that is receiving increased attention from large chipset makers Intel and AMD among others.

To help you with your own research, here is a list of semiconductor companies with increased insider ownership. Investors seem to think the semiconductor industry is in trouble, but these insiders think otherwise. Do you agree with their contrarian outlook?

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List sorted according to net shares purchased by insiders as a percentage of the share float.

1. API Technologies Corp. (ATNY): Broad Line Semiconductor industry with a market cap of $350.29M. Over the last six months, insiders have purchased 163,166 shares (net), which represents 0.85% of the 19.12M share float.

2. Aeroflex Holding Corp. (ARX): Integrated Circuits industry with a market cap of $1.28B. Over the last six months, insiders have purchased 23,795 shares (net), which represents 0.07% of the 32.49M share float.

3. Amkor Technology, Inc. (AMKR): Integrated Circuits industry with a market cap of $1.09B. Over the last six months, insiders have purchased 17,500 shares (net), which represents 0.02% of the 99.87M share float.

4. LSI Corporation (LSI): Specialized Semiconductor industry with a market cap of $4.06B. Over the last six months, insiders have purchased 60,000 shares (net), which represents 0.01% of the 603.89M share float.

5. Rubicon Technology, Inc. (RBCN): Specialized Semiconductor industry with a market cap of $336.61M. Over the last six months, insiders have purchased 2,000 shares (net), which represents 0.01% of the 17.52M share float.

6. MEMC Electronic Materials Inc. (WFR): Integrated Circuits industry with a market cap of $1.77B. Over the last six months, insiders have purchased 12,300 shares (net), which represents 0.01% of the 229.88M share float.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: AMKR , ARX , ATNY , LSI , RBCN , WFR

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