Julie Southern, a board chair at NXP Semiconductors (NXPI), recently bought 146 shares. The buy increased her stake by 1%, and came to a total cost of $27,600.
Southern was the last insider to buy shares in August 2023, when she bought 203 shares for $44,268. There have been a dozen insider sales over the past year, including some sales from the company President and CEO totaling nearly $10 million.
Overall, NXP insiders own 0.1% of shares.
The semiconductor producer is up 14% over the past year, underperforming both the chip sector and the market as a whole. Earnings and revenues are down about 5% in the past year, indicating a slow performance for NXP.
However, NXP has a 21% profit margin, which can be easily expanded with increased sales, and shares are cheaper than many semiconductor plays at 18 times forward earnings.
Action to take: Investors may like shares here, given their recent 20% slide in just the past few weeks. There is some technical support in the low $230 area where shares are trading now, and if that holds, the stock could quickly rebound.
Plus, at current prices, NXP pays a 1.7% dividend.
For traders, the September 20 $260 calls, last trading for about $5.50, could see high double-digit returns on a rebound for shares. Traders may want to use any relief rally day for the markets to take profits.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
