Gregory Waters, a Board Director at Integrated Device Technology Inc (NASDAQ:IDTI), has been quite active over the past week. He first started a position of 34,444 shares in the company in the first week of February paying an average price of $10.40 per share. On the same date, he added even more stock to his holding: Waters purchased an extra 15,556 shares for an average price of $10.55 per share. Finally, on Feb. 10th, he doubled his stake in the company by acquiring another 50,000 shares, for $10.59 each (on average). After the reported transactions, the insider owns 100,000 shares of the company, worth more than $1.17 million.
Integrated Device Technology Inc (NASDAQ:IDTI) is a small-cap ($1.7 billion) designer, developer, manufacturer and marketer of low-power-high-performance mixed signal semiconductor solutions for the advanced communications, computing and consumer industries. Despite its scale and narrow margins most analysts recommend buying this stock, mainly on account of its below average valuation (at 20x P/E, versus an industry average of 22.8x) and amazing long-term EPS growth projections –analysts expect the company to deliver an average annual growth rates around 43.5% over the next five years, compared to an industry average of 17%-18%. However, as the stock price continues to rise (it is up 8% year-to-date), the entry point becomes less attractive. It looks like investors should hurry up and buy this stock before it becomes too expensive (as Mr. Waters did).
In fact, not only analysts and Mr. Waters feel confident about Integrated Device Technology Inc (NASDAQ:IDTI)’s future. Bill Miller’s Legg Mason Capital Management last declared (end of Q3) holding more than 1.4 million shares of the company. In addition, Stephen V. Raneri’s Lioneye Capital Management started a position with more than 1 million shares during the third quarter, as well. Other prominent investors worth mentioning are Jim Simons (Renaissance Technologies) and Chuck Royce (Royce & Associates), both of which hold millionaire stakes in the company.
On the other hand, Jeffrey Smith’s Starboard Value Lp, one of the largest hedge fund bulls, substantially decreased its bets on Device Technology Inc (NASDAQ:IDTI) over the fourth quarter of 2013 and first quarter of 2014. After getting rid of approximately 2.2 million shares, Smith´s fund still owns 10.2 million shares, about eight times its closest “hedgie” follower.
Disclosure: Javier Hasse holds no position in any stocks mentioned