Chuck Royce (Trades, Portfolio), CEO and portfolio manager at Royce Funds, trimmed his position in Integrated Silicon Solution (ISSI, Financial) by more than 77% on May 31, according to GuruFocus Real Time Picks.
Royce sold 1,323,114 shares for $20.52 per share, leaving 381,388 shares in the position. Royce had been gradually selling shares since the beginning of 2014 as the company’s stock price increased, as shown in the graph below.
Integrated Silicon is a semiconductor company that designs high performance integrated circuits for a variety of markets. The stock rose 39% over the past year and currently trades at $20.68, with a P/E ratio of 51.1% and P/S ratio of 2.
Cypress Semiconductor Corporation (CY, Financial) recently revised its offer to acquire Integrated Silicon to $20.25 per share. However, in the most recent press release, Integrated Silicon expressed concern about Cypress’ ability to finance the deal, and concluded that no assurance on the outcome of the discussions could be made.
Integrated Silicon’s free cash flow in 2014 was $-13 million, the first time free cash flow was negative since 2010.
The dividend yield is 1.2%, and the payout ratio is 44%. In 2014, the company reported net income of $23.3 million, up from $17.5 million the year before. However, looking at the trend over time, the company’s net income has seen plenty of fluctuation.
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