TriQuint Semiconductor Insiders Are Making Moves

TriQuint Semiconductor insiders: Todd Debonis, Worldwide Sales Vice President at TriQuint Semiconductor (NASDAQ:TQNT), sold* 12,000 company shares at $7.889 and re-bought the same amount at $6.87, on Monday Sept. 30^th. He now owns 18,580 shares, valued at $159,044. He also holds 13,500 shares indirectly (through a Living Trust) and 12,000 non-qualified stock options (right to buy), to expire in April 2014.

More interesting than Debonis’ move is Timothy A. Dunn‘s. The handsets division Vice President (Dunn) purchased 10,000 shares at $4.55 on February 21^st, but just filed the report to the U.S. Securities and Exchange Commission yesterday, October 2^nd.  Since the acquisition, the stock has gained about 88% in price. Following the disclosure, TriQuint’s shares rose 2.2% on Wednesday and an extra 2.64% on Thursday.

The upsurge has served to reverse last week’s downtrend. The company had presented its first integrated power amplifier solution for small cell and active antenna base stations, and the stock had dropped about 1.5% just after the launch.

However, investors must be aware. Dunn’s purchase could pass as recent insider activity, same as Debonis’ move. But neither of these moves really opens a good entry point for investors. Although TriQuint’s valuation at 1.7 times its sales (compared to the 2.6 x industry average) could look appealing, its negative margins and returns leads me to think twice before recommending this stock. Nonetheless, prospects are good, and a lower stock price (the stock surged more than 13% over the last month) would make of this, an interesting investment.

The largest hedge fund bullish on TriQuint is Jeffery Smith’s Starboard Value, which holds about $88,427,000 in stock (this represents about 6.17% of its portfolio).  The institution is followed by Ken Fisher’s Fisher Asset Management and Chuck Royce’s Royce & Associates, which own roughly $44,627,000 and $19,363,000 in stock, respectively.

* Pursuant to a 10b5-1 Trading Plan.

Disclosure: Javier Hasse holds no position in any stocks mentioned

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