Nordic Semiconductor is a Norwegian technology company that is engaged in the development and sale of integrated circuits and related solutions for short-range wireless communication. Its solutions are used in a range of end products, including computer and tablet accessories, mobile and wearable devices, home electronic devices, sports and health monitors, and installed sensor networks. The company is listed on the Oslo Stock Exchange and currently has a market capitalisation of NOK 10 billion.
We last covered Nordic Semiconductor in late October, when the stock was trading at NOK 55. At the time, we noted that three insiders – including Chairman Birger Steen – had recently purchased shares and we said that, in our view, the stock had the potential to keep rising. Fast forward to today, and that now looks like a great call. Since our report in late October, NOD has risen 7% to NOK 59 on the back of strong Q1 results, in which revenue was up 33% on the same period last year. In comparison, the STOXX Europe 600 index has declined 17% over the same period.
Looking at recent insider transaction activity, we think the outlook here remains favourable. This is due to the fact that in the last week, three directors have purchased shares at higher prices. This suggests that these insiders believe the stock is still undervalued. With the company recently reporting a 39% increase in its order backlog, and multiple insiders buying shares, we think Nordic Semiconductor has the potential to continue outperforming.