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In the semiconductor complex, insiders are snapping up shares of
TriQuint Semiconductor(TQNT), a supplier of modules, components and foundry services for communications applications. This is yet another name that insiders are buying after a big decline; it's off by around 55% so far in 2011.
TriQuint Semiconductor has a market cap of $826.15 million and an enterprise value of $653.99 million. This stock trades at a reasonable valuation; its trailing price-to-earnings is 9.94, and its forward price-to-earnings is 13.81. This company's estimated growth rate for this year is -39.8%, and for next year it's pegged at -28%. This is a cash-rich company, with a total cash position on its balance sheet of $147.22 million and total debt of zero.
A director just
bought 100,000 shares, or $431,200 worth of stock, at $4.31 per share. This same director also recently bought 14,333 shares, or $68,211 worth of stock, at $4.76 per share.
From a technical standpoint, TQNT is currently trading below both its 50-day and 200-day moving average, which is bearish. This stock was hit hard by the sellers recently from its October high of $7.76 to a recent low of $3.97 a share. Since that low, the stock has rebounded sharply to its current price of near $5 a share. Market players should now watch TQNT for a breakout trade if a few overhead resistance levels can be cleared with volume.
If you're bullish on TQNT, you should look to be a buyer on any weakness and anticipate a breakout above $4.92 and $5.42 (its 50-day) a share on
high volume. Look for volume on any sustained move and close above those levels that hits close to or above its three-month average action of 6,744,620 shares. I would simply use a mental stop at around $4.50 in case the stock isn't ready to breakout just yet.
To see more stocks with notable insider buying, including
Assured Guaranty(AGO) and
Shutterfly(SFLY), check out the
Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.