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Monica Wolfe
Monica Wolfe
Articles (757) 

Entropic Announces First Quarter Results and Large Insider Buys

May 06, 2013 | About:
Insider Activity On May 3, two corporate officers of Entropic Communications made insider buys as the price of the stock hit a three-year low.

Senior VP and General Counsel Lance Bridges bought 20,000 shares at an average price of $3.93. He spent a total of $78,600 on this buy. Bridges now holds on to at least 96,073 shares of Entropic.

CFO David Lyle bought 10,000 shares of Entropic at $3.93 per share. This cost the CFO a total of $39,300. Lyle now holds on to at least 33,809 shares of the company’s stock.

Since these two men made buys, the company’s price has increased 0.51%.

Company Overview

Entropic Communications (ENTR) is a fabless semiconductor company that designs, develops and markets systems solutions to enable connected home entertainment. Entropic was one of the pioneers of the key technologies that enable connected home networking of digital entertainment over existing coaxial cables. The company also provides systems solutions comprised of silicon integrated circuits and associated software as a platform to enable delivery of multiple streams of HD video and other multimedia content into and throughout the home. Entropic offers their products to service providing companies like Comcast, Cox, DISH Network and Time Warner Cable as well as OEM/ODM customers such as Cisco, D-Link, TiVo, Samsung and many others.

What to look for in Entropic:

· The company has no debt.

· The P/S ratio is close to a three-year low of 1.05.

· In the past year the company’s revenue has grown 44.5%.

· The company’s revenue has been growing since 2009.

· The company’s P/B ratio is at 1.


Possible Warning signs for Entropic:

· The EPS of Entropic have been getting smaller since 2010.

· The company’s asset growth is faster than its revenue growth.

· The company’s 10-K reported that Entropic only became profitable recently, and that they are unsure if it will remain profitable due to intense competition with companies that are better capitalized.

First Quarter Earnings Highlight

· The first quarter net revenue was $74.5 million which is up from $59.1 million in the first quarter of 2012.

· The company’s first quarter net loss (GAAP) was $2.4 million compared to the net income of $3.9 million from the first quarter of 2012.

President and CEO of Entropic, Patrick Henry said of the company’s first quarter results, “2013 is a transitional year for Entropic; we are working to develop and bring new and integrated products to the market, improve our gross margins and target key designs at Tier-1 operators. We’ve already made significant progress towards these goals and continue on our pursuit to be a leading global silicon supplier in the multi-billion dollar connected home entertainment market.”

Guru Trades

Pioneer Investments holds 592,000 shares of Entropic Communications as of Dec. 31, 2012.

Joel Greenblatt holds 173,122 shares of Entropic as of Dec. 31, 2013.

Entropic Communications will be presenting at the JP Morgan Global Technology, Media and Telecom Conference on May 16 at 9:20 a.m.

With its shares up 2.28%, Entropic trades at $4.04.
  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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