12-month performance: +100% Insider activity: Bullish Insider buying pattern: Purchases from multiple insiders including Chairman Recent news: Lifted revenue guidance
Corporate insiders have an information advantage over other investors. If they’re buying company stock, it’s worth taking note.
Here, we are going to highlight recent insider buying at Nordic Semiconductor (NOD:NO). Nordic Semiconductor is a Norwegian technology company that develops wireless communication solutions. Its products are used in a range of products, including computers and tablets, 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 capitalization of NOK 17 billion.
Nordic Semiconductor: insider buying
What has caught our attention here is two insider transactions on 9 September. The first was a purchase from Chairman Birger Steen, who bought 2,000 NOD shares at a price of NOK 88.99 per share. The second was a purchase from Non-Executive Director Jan Frykhammar, who picked up 6,000 shares at a price of NOK 87.90 per share.
Source: 2iQ Research
This insider transaction activity looks interesting for a couple of reasons. Firstly, Birger Steen has a good track record when it comes to timing his purchases. The last time he purchased Nordic Semiconductor stock, on 21 April 2020, the stock rose around 70% in the next three months.
Secondly, Jan Frykhammar – who also purchased shares in April 2020 – was formerly interim CEO and CFO at Ericsson AB. He has extensive knowledge of the telecom industry. His purchase of 6,000 shares has increased his holding by 37%. This suggests he’s confident about the future.
Increased revenue guidance
Earlier this month, Nordic Semiconductor advised that it expects third-quarter revenue to exceed previous guidance. Previously, the company was expecting Q3 revenue of USD $95 to $105 million. Now, it expects revenue of $112 to $118 million. The company also said that it continues to see positive demand trends – with increasing volume from tier one customers and OEM manufacturers – and that its order backlog indicates a strong outlook for the final quarter of the year.
Putting this all together, we see the recent insider buying here as a bullish signal. The company has momentum right now, and insiders clearly expect the stock to continue rising.
Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.
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