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Insiders for TTM Technologies Sell at 3-Year Low

Posted
4/1/2013 7:09:00 PM
By: GuruFocus
Referenced Stocks:AAPL;TTMI

With prices at a 3-year low, five corporate executives at TTM Technologies ( TTMI ) decided to sell quite a bit of their company stock. TTM Technologies has had a rough year, and now it looks like even the company's execs are losing the faith. The month of March brought with it a total of 15 insider sells for the company. A drastic sign since according to the GuruFocus analysis of the company, its revenue per share has been in a state of decline for the past year.

Most recently on March 26, four company executives (and one former officer) sold a total of 15,522 shares at an average price of $7.65 per share for a total transaction amount of $118,795. Prior to the most recent cluster sell; the same five insiders sold shares on both March 4 and March 11. CEO Kenton Alder has sold over 36,000 shares this month alone.



As the chart above displays, March has shown the largest insider-sell off since prices peaked in March 2011. There hasn't been an insider buy since August 2010.

TTM Technologies is a global printed circuit board manufacturer (PCB), focusing on quick-turn and technologically advanced PCBs and the backplane and sub-system assembly business. TTM is the company that builds the circuit boards for iPhones. Recently, though, Apple ( AAPL ) decided to cut its parts order in half, doing some serious damage to the circuit boards manufacturer.

After Apple cut its order, Stifel Nicolas downgraded TTM Technologies from a "buy" to a "hold" stating a number of issues including "soft demand, excess industry capacity, and ongoing margin pressure." This caused the largest drop in shares.

In order to try and salvage their dwindling share prices, TTM Technologies announced on March 18 that they had signed definitive agreements with its minority partner, Sytech Technology, to sell TTM's 70.2% equity interest in the SYE plant to Sytech and to acquire Sytech's 20% equity interest in the DMC plant. The transaction is expected to close by the end of the second quarter of 2013. TTM has projected that the transaction will generate approximately $84 for TTM and that they expect to use $40 million to repay an intercompany loan to SYE.

There are still two gurus that hold stake in TTM Technologies. Chuck Royce holds 4,102,935 shares in the company and David Dreman holds 672,946 shares.

TTM Technologies is currently sitting at a 3-year low price. With its shares down 3.16%, TTMI trades at $7.36.

To see a complete list of insider trades at TTMI, look at the company's insider trade history.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .