Wish you could get the inside scoop on your favorite companies? One idea is to consider insider stock buying trends. These are trends in the number of company shares being bought by insiders such as members of the board and upper management.
Insiders report when they buy company shares, and this is viewed very positively by analysts as a show of confidence from those who know most about the company.
To illustrate this, we ran a screen on the semiconductor industry for stocks seeing the most significant net insider purchases over the last six months.
Business section: Investing ideas
These are the stocks that resulted from this screen. These semiconductor companies have the confidence of their insiders, as evidenced by strong net insider purchases over the last six months.
Do you think these stocks will outperform like insiders expect?
Use this list as a starting point for your own analysis. (Click here to access free, interactive tools to analyze these ideas.)
1. Cirrus Logic (NAS: CRUS) : Develops high-precision analog and mixed-signal integrated circuits (ICs). Over the last six months, insiders were net buyers of 152,115 shares, which represents about 0.24% of the company's 63.44M share float.
2. Entegris (NAS: ENTG) : Develops, manufactures, and supplies products and materials used in processing and manufacturing in the semiconductor and other high-technology industries worldwide. Over the last six months, insiders were net buyers of 146,710 shares, which represents about 0.13% of the company's 110.22M share float.
3. Micrel (NAS: MCRL) : Designs, develops, manufactures, and markets high-performance analog power, mixed-signal, and digital integrated circuits (ICs) primarily in North America, Europe, and Asia. Over the last six months, insiders were net buyers of 45,300 shares, which represents about 0.09% of the company's 49.08M share float.
4. TriQuint Semiconductor (NAS: TQNT) : Supplies modules, components, and foundry services to communications companies worldwide. Over the last six months, insiders were net buyers of 152,333 shares, which represents about 0.09% of the company's 165.20M share float.
5. MEMC Electronic Materials (NYS: WFR) : Engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. Over the last six months, insiders were net buyers of 355,195 shares, which represents about 0.15% of the company's 229.92M share float.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Alexander Crawford does not own any of the shares mentioned above. Insider data sourced from Yahoo! Finance.
At the time thisarticle was published The Motley Fool owns shares of TriQuint Semiconductor and Cirrus Logic. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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