Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Keysight Technologies Inc (KEYS:US). Keysight is a technology company that provides electronic design and testing solutions. The group operates in more than 100 countries globally and currently serves 25 of the world’s top tech companies. It is listed on the New York Stock Exchange and currently has a market capitalization of $28.82 billion.
Keysight Technologies Inc: Insider Buying
Our data shows that on March 24, board member Kevin Stephens bought 1,000 shares at a price of $158.92 per share. This trade cost the insider $158,924 and increased his holding to 2,626 shares.
Mr. Stephens is a high-achieving executive that has experience in both technology and investment management. In his most recent executive role, he was Executive Vice President & President, Business Services at Altice USA Inc, a Fortune 1000 internet service provider, where he led the $1.4 billion business services division.
Currently, he serves as an independent Board Director at Crown Castle International Corp and an independent Board Director at Consumer Cellular, a privately held wireless service provider. He is also a member of the investment committee for Cultivation Capital, and in 2020 was an advisor to Morgan Stanley Infrastructure Partners (MSIP) for a $3.2 billion acquisition. This background means that he is likely to have an excellent understanding of Keysight’s prospects and intrinsic value.
What stands out about this trade is that it has increased the size of Mr. Stephens’ holding by 62%. The fact that the insider has boosted his position by such a large percentage suggests that he is confident the stock is set to move higher.
Strong Start to Fiscal 2022
Keysight recently posted a solid set of results for the first quarter of fiscal 2022.
For the period, orders were up 22% to $1.5 billion while revenue was up 6% to $1.25 billion. Non-GAAP net income was $305 million, or $1.65 per share, compared with $270 million, or $1.43 per share in the first quarter of 2021. Both revenue and earnings beat analysts’ estimates.
“The Keysight team delivered a strong start to the year, exceeding the high end of our revenue and EPS guidance. Continued robust demand for our differentiated solutions resulted in record orders,” commented Chairman, President and CEO Ron Nersesian.
Looking ahead, management was confident about the future. “By enabling the rapid progression of disruptive technologies and accelerating innovation to connect and secure the world, we are better positioned than ever to capitalize on long-term secular growth trends and deliver above-market growth,” said Mr. Nersesian.
In light of these results, and the confident tone from management, we see the insider buying here as a bullish indicator.