These 3 Battered Stocks are Being Bought Up by Insiders; Are They Set to Rebound?

Last but not least, Xcerra Corp (NASDAQ:XCRA) had one of its executives purchase shares earlier this year. Mark J. Gallenberger, Senior Vice President, Chief Operating Officer and Chief Financial Officer, reported purchasing 15,000 shares on Friday at a weighted average price of $5.20, boosting his total stake to 533,028 shares. The global provider of test and handling capital equipment, interface products, and test fixtures has seen its shares decline by 34% since the middle of January 2015. The demand for the company’s capital equipment and consumable products, which is highly dependent on the growth of the semiconductor and electronics industries, has been slowing over the past several quarters.

The company reported net sales of $78.40 million for the three-month period that ended October 31, down from $116.22 million reported for the same period a year ago. The stock trades at a forward P/E ratio of 14.91, which could explain the executive’s decision to stockpile more shares at the moment. Nonetheless, this valuation metric reflects analysts’ earnings expectations, which might not come in line with the company’s actual results. At the end of November, Xcerra announced the completion of the sale of its semiconductor test interface board business for roughly $23 million. A total of 19 hedge funds from our database had stakes in the company at the end of the September quarter, which amassed 14.20% of its outstanding shares. Royce & Associates, founded by Chuck Royce, reported owning 2.97 million shares of Xcerra Corp (NASDAQ:XCRA) through its 13F for the third quarter.

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