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Jennifer Chiou
Jennifer Chiou
Articles (195) 

Cavium Insider Invests in Company

Finance and Administration vice president buys 20,000 shares

August 30, 2016 | About:

Arthur Chadwick (Insider Trades), vice president of Finance and Adminstration and chief financial officer of Cavium Inc. (CAVM), purchased 20,000 shares in the company on Aug. 25. The price per share was $55.33 for a total transaction of $1,106,600.

Cavium is a semiconductor product provider for networking, communication and the digital home. The company has a market cap of $3.65 billion.

The number of Cavium insider sells decreased from 19 in 2014 to 11 in 2015, and the total volume of shares sold by Cavium insiders also decreased from 672,675 to 338,332 when comparing the two years.

There have been three insider sells totaling 392,658 shares and four insider buys totaling 70,000 shares this year to date. Chadwick conducted three of the four insider buys, which amounted to 50,000 out of 70,000 shares. There were no insider purchases with Cavium in 2014 or 2015.

Another Cavium insider, Chief Operating Officer Raghib Hussain (Insider Trades), purchased the remaining 20,000 shares for $51.86 per share on Aug. 16. The number and volume of insider sells is directly related to month-end price. For more information about insider trades with Cavium, click here.

The company reported net revenue of $107.158 million for the three months ended on June 30, which was up from $104.961 million reported by the company in the previous year’s second quarter. Net loss increased from $6.355 million, or 11 cents per share, to $7.410 million, or 13 cents per share, during the same period.

The company announced the completion of the acquisition of QLogic Corp. (NASDAQ:QLGC), a supplier of high performance networking infrastructure solutions, on Aug. 16. QLogic absorbed a subsidiary wholly owned by Cavium as part of the acquisition. Also, each outstanding share of QLogic common stock was converted to the right to receive $11 per share in cash and 0.098 shares of Cavium common stock.

According to GuruFocus.com information, Cavium has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.

George Soros (Trades, Portfolio) increased his stake while Chuck Royce (Trades, Portfolio) sold out all held shares of Cavium during the second quarter.

Soros acquired 76,180 shares of the company at an average price of $49.46 per share after selling out 125,000 shares for an average price of $33.38 per share in the second quarter of 2013. Royce sold 69,000 shares of the company at an average price of $49.46 per share. The total estimated gain of the holding since the first quarter of 2014 is 47%. For more information about guru transactions with Cavium, click here.

Disclosure: I do not own any stocks included in this article.

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