Insider Trading Report: NXP Semiconductor (NXPI)

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  • Jasmin Staiblin, a director at NXP Semiconductor (NXPI), recently bought 1,500 shares. The buy increased her holdings by over 135 percent, and came to a total price of just over $135,000.

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  • As is typical of a tech company, insiders are mostly sellers of shares, with a heavy concentration of selling at the executive vice president level. However, this was the second buy of the year from insiders following another director purchase back in April.

    NXP, based out of the Netherlands, has underperformed many other tech and semiconductor names in the past year. Shares are up less than 15 percent.

    The company barely made a profit in the last quarter on the back of flat earnings growth. As a result, shares look a bit pricey relative to earnings and sales at the moment.

    Action to take: Shares have been in a long-term uptrend since the market crashed in March. Chances are the ongoing uptrend will continue. While that may not bode well for fast profits, options traders can still make outsized returns on this trend.

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  • The April 2021 $140 call is just out-of-the-money. Trading for about $13.70, the option should move in-the-money. If the current uptrend continues in shares, the options should provide mid-to-high double-digit returns by their expiration.