If a corporate insider is spending a substantial amount of money on company stock, it’s often worth taking a closer look. Insiders are some of the most informed participants in the market and their trades can provide valuable investment insights.
Here, we are going to take a look at recent insider buying at Alphawave IP Group PLC (AWE:LN). Alphawave IP Group is a British company that provides data connectivity solutions. The company engages in extensive R&D and then licenses out its IP to the clients – which include many top-tier players in the semiconductor industry. Its solutions allow data to travel faster, more reliably, and with a higher performance while using less power. The company is listed on the London Stock Exchange and currently has a market capitalization of £1 billion.
Alphawave IP Group PLC: Insider Buying
Our insider transaction data shows that between June 10 and June 17, an Executive Director at Alphawave IP Group, Sehat Sutardja, purchased 1,972,836 AWE shares at an average price of £1.5 per share. These share purchases cost the insider a little under £2.9 million.
This insider buying caught our attention for two main reasons.
Firstly, Mr. Sutardja has had high-profile roles within the semiconductor industry and has also received accolades for his inventions. He co-founded Marvell Technology Group and served as its CEO, and he is currently the CEO of FLC Technology Group. In 2006, Mr. Sutardja was named Inventor of the Year by the Silicon Valley Intellectual Property Law Association. This means that he is likely to understand Alphawave IP Group and its products very well.
Secondly, the Executive Director has purchased a large amount of AWE stock. This suggests that he believes the fall in the company’s share price since its IPO has not been warranted. Our insider transaction data shows that he appears to have been bullish on the company for a long period of time and that he has picked up close to eight million shares this calendar year.
Alphawave IP Group recently posted a strong set of results for 2021.
For the year, revenue amounted to $89.9 million, up 173% year on year. Meanwhile, adjusted EBITDA jumped to $51.8 million, from $19.3 million a year earlier. The company saw record bookings in 2021, with 225% year on year growth, and ended the year with 20 customers, up from 11 at the end of 2020.
Alphawave advised in its full-year results that it had continued to accelerate sales performance in the first quarter of 2022. For the quarter, total bookings amounted to $30.7 million, a quarter-on-quarter increase of 20%. This performance was driven by continued expansion in the US with numerous design wins with new and existing customers, as well as an additional chiplet design win.
It added that it expects to continue to accelerate the sales performance in the second quarter of 2022 and expand both within existing customers and new customers, primarily in North America and Korea.
“As we look forward to 2022, we will continue to expand our technology leadership in our IP licensing business while broadening our portfolio of solutions through organic development and through continued acquisition of adjacent technologies. The recently announced acquisitions of OpenFive and Precise-ITC are examples of how we will continue to expand our product offerings in the future. With this growth and expansion, we will continue to be not only the leading provider of connectivity IP, but the global leader in connectivity for the entire high-end semiconductor market,” said Chairman John Lofton Holt.
In light of this update, we see the insider buying here as bullish.