Last week’s dollar volume of insider buying slightly increased week-over-week, implying that corporate insiders do have faith in the underlying strength of the U.S. economy and the business environments their companies are engaged in. Furthermore, last week’s overall value of insider selling was nearly halved week-over-week, which somewhat brightens the near-term outlook even further.
Corporate insiders, namely directors and executives, have a good feel for their companies’ near-term and longer-term prospects. Even low-level employees usually know more about what’s going on with their companies than outside investors and analysts, so imagine for a second the amount of information and knowledge that top-tier executives hold. That is one of the primary reasons why Insider Monkey, hedge fund firms and other stock market participants keeps tabs on insider trading data. That said, the following article will discuss a set of noteworthy insider transactions reported with the Securities and Exchange Commission during the first trading session of this week.
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More Insider Buying at Growing Fabless Semiconductor Company
Three executives at Cavium Inc. (NASDAQ:CAVM) have purchased shares thus far in August, so let’s have a quick look at the most recent insider trading activity. Arthur D. Chadwick, the company’s Chief Financial Officer and Vice President of Finance and Administration since December 2004, bought 20,000 shares on Thursday at a price tag of $55.33 each. After the recent transaction, Mr. Chadwick currently holds an ownership stake of 122,845 shares.
The insider buying comes a few weeks after the provider of highly integrated semiconductor processors completed the acquisition of QLogic Corporation, a supplier of networking infrastructure solutions. Under the terms of the merger agreement, QLogic shareholders received $11 per share in cash and 0.098 shares of Cavium for each share of QLogic. Cavium Inc. (NASDAQ:CAVM)’s market capitalization was down by 41% this year through the end of June, but the stock has been in recovery mode lately, gaining 16% in the past month. Ken Griffin’s Citadel Advisors upped its position in Cavium Inc. (NASDAQ:CAVM) by 23% during the June quarter, to 2.06 million shares.
The next page of this article will discuss the fresh insider buying registered at two companies, while the final page of the article will reveal noteworthy insider selling at two other companies.