Cascade Microtech, insider buy: Cascade Microtech, Inc. (NASDAQ:CSCD) experienced insider trading this Monday, when Steven Harris acquired 6,294 shares of common stock at $3.11 per share. He did so exercising his stock options, which he receives as compensation due to his position as Executive Vice President of Cascade Microtech. This transaction brought the number of securities owned by Harris to 55,139 shares, or approximately $554,146 worth of stock. Cascade is trading near its 52-week high of $10.13, yet the stock has been growing continuously over the past few weeks, with no decline in share value expected anytime soon.
Unlike other insider trades, the purchase executed by Harris was not made in order to hold onto Cascade stock. Instead, the Executive Vice President sold off the discounted shares he acquired at $10 each, at a profit of over 300%, on the open market the same day.
There are three strong hedge funds in Cascade, each holding a different position in terms of size. Becker Drapkin Management, of Matthew Drapkin and Steven R. Becker, holds 1,048,712 shares of the company. This represents a total sum of approximately $ 10,539,555 and makes up around 5.02% of the hedge fund’s equity portfolio. Renaissance Technologies also holds an important stake in the firm, with 278,300 shares, whereas Algert Coldiron Investors has a minor position of 25,517 shares, or $256,445.
Cascade is responsible for the designing, developing and manufacturing of advanced wafer probing and test socket solutions used for the electrical measurement and the testing of high performance chips. The firm has an solid long-term revenue growth rate of 25%, no recorded debt, and very high levels of free cash flow. While trading at just 23.7 times its trailing earnings, the stock is available at a minor price premium of 1.3% to industry averages.
Disclosure: Pablo Erbar holds no position in any stocks mentioned.