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Big Time Insiders Make Big Time Trades in Tech Stocks

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Individuals invested in markets keep a close eye on insider trades.

The fact of the matter is, if an insider buys big, it sends a clear message to shareholders. It’s like a high-five to investors, showing they’re super confident in the long-term outlook.

But who fits the “insider” bill?

An insider, as defined by Section 16 of the Securities Exchange Act, is an officer, director, 10% stockholder, or anyone who knows secret stuff because of their relationship with the company.

Insiders are tied down by a ton of strict rules.

They can’t trade based on secret stuff, they have to clear all their trades ahead of time and they can only do insider trading during special times of the year.

On top of that, insiders have to hang on to the stock for longer than most folks – something investors should keep in mind.

Recently, there’s been some insider action at three tech companies – Iridium Communications IRDM, Amphenol APH, and MKS Instruments MKSI. So, for those looking to trade like an insider, here’s the scoop on each.

Iridium Communications

This company’s all about serving up mobile voice and data comms from way up in the sky. The CEO just snagged a massive 28k shares valued at about $1 million in a single transaction.

Despite back-to-back quarterly results that stunk up the joint, pushing shares down, things have turned around big time since the mid-November low, with shares climbing 11% in no time flat. It’s like a phoenix rising from the ashes.

Zacks Investment Research
Image Source: Zacks Investment Research

IRDM stocks bring tech exposure combined with a decent 1.4% annual yield. It’s like a cherry on top of a good deal.

Amphenol

Amphenol does a little bit of everything, like designing, making, and hawking electrical, electronic, and fiber optic connectors, along with some other fancy gizmos.

In early November, a director snapped up about 11.8k shares worth a cool million in a single buy.

The company’s shares got a big shot in the arm after its previous quarterly release. Amphenol crushed the Zacks Consensus EPS Estimate by over 5% and delivered a 4% sales shocker. Plus, they jacked up their dividend by 5%, which had investors doing backflips.

Zacks Investment Research
Image Source: Zacks Investment Research

MKS Instruments

This company does the global thing, providing instruments, subsystems, and process control solutions that measure, track, deliver, analyze, power, and boss around the important stuff in fancy manufacturing processes.

An insider made a splash by buying 2.5k shares worth just over $170k in a single shake of the money tree.

Just like APH, the market went nuts after MKS Instruments’ latest report card. Shares shot up into the stratosphere post-earnings. The company clobbered the Zacks Consensus EPS Estimate by a whopping 46% and missed on revenue by a hair.

Analysts have gone gaga over the company’s outlook for this fiscal year. The $4.14 Zacks Consensus EPS Estimate is way above the $3.15 per share forecast back in late April. It’s like hitting the jackpot twice in one day.

Zacks Investment Research
Image Source: Zacks Investment Research

In Conclusion

Lots of investors keep a close watch on insider trades, which bring a lot of confidence to the table. After all, if an insider didn’t believe in where the company was headed, why would they take the plunge?

All three stocks – Iridium Communications IRDM, Amphenol APH, and MKS Instruments MKSI – have had insider action recently. It’s like having the golden goose laying eggs of solid gold.

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.

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Amphenol Corporation (APH) : Free Stock Analysis Report

MKS Instruments, Inc. (MKSI) : Free Stock Analysis Report

Iridium Communications Inc (IRDM) : Free Stock Analysis Report

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

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