12-month performance: -30% Insider activity: Bullish Insider buying pattern: Purchases from multiple insiders including Chairman Recent news: Completed merger with TiVo Corporation
Company insiders such as corporate executives and directors tend to have the most up-to-date information on their companies. This means that their trading activity can tell us a lot about a stock’s future potential.
With that in mind, today we are going to highlight recent insider buying at Xperi Holding Corporation (XPER:US). Xperi is a US-based company that develops technologies that enable extraordinary experiences. It is listed on the NASDAQ Global Select Market and currently has a market capitalization of $1.4 billion.
What has caught our attention here is the fact that between 24 August and 27 August, four insiders purchased Xperi stock. Those buying included Chairman Dave Habiger, and three board members. Combined, these insiders spent around $275,000 on stock.
Source: 2iQ Research
This insider transaction activity looks interesting for several reasons. Firstly, multiple insiders have purchased stock within a short period of time. This pattern, which we call ‘cluster buying’ is generally quite bullish.
Secondly, this insider buying activity represents the largest amount of insider buying at Xperi within a quarter for several years. We see this as a positive development.
Xperi issued an encouraging set of second-quarter results on 10 August. The company advised that it completed the merger of Xperi Corporation and TiVo Corporation on 1 June 1 to form Xperi Holding Corporation. It also said that billings for legacy Xperi were $93.4 million – above the high end of expectations. “This has been a very productive time for Xperi, as we closed our transformational merger with TiVo in June and have made significant progress on the integration and on our strategic and financial goals,” said Jon Kirchner, chief executive officer of Xperi.
Putting this all together, we see the recent insider buying here as a bullish signal. It suggests that the company is making progress towards its goals and that insiders see the stock as undervalued at present.
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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