Julie Southern, Chair of NXP Semiconductors (NXPI), recently added 203 shares. The buy increased her stake by 2 percent, and came to a total cost just over $44,260.
This is the first insider buy since Southern bought in March 2022, buying 135 shares and paying just over $24,000. Since then, there have been four insider sales, three coming from company vice presidents, but one from the company CEO.
All told, company insiders own just under 0.2 percent of shares.
The chipmaker is up 18 percent over the past year, more than double the return of the S&P 500 over the same period.
Even with that outperformance, shares are trading at just 15 times earnings, a modest discount to the market as a whole. Earnings grew 4 percent over the past year, and revenues stayed flat, as semiconductors have been out of favor during the bear market but are starting to see demand pick up thanks to a renewed interest in AI.
Action to take: Long-term investors may like shares at current prices or on a drop lower. The stock is still off its highs and have room to make new highs in the months and even years ahead. Plus, shares pay a 1.9 percent dividend now, with room for future growth.
For traders, the October $230 calls, last going for about $7.50, could see mid-double-digit returns in the two months ahead before expiration. Traders may want to use any big rally day for shares to take smaller but quicker 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 of the companies mentioned in this article.