There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on August 2, PMC-Sierra Inc.'s Director, Richard N. Nottenburg, invested $39,965.25 into 7,500 shares of PMCS, for a cost per share of $5.33. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Friday, bargain hunters could buy shares of PMC-Sierra Inc. (NASD: PMCS) and achieve a cost basis 11.8% cheaper than Nottenburg, with shares changing hands as low as $4.70 per share. PMC-Sierra Inc. shares are currently trading off about 0.9% on the day. The chart below shows the one year performance of PMCS shares, versus its 200 day moving average:
Looking at the chart above, PMCS's low point in its 52 week range is $4.63 per share, with $7.80 as the 52 week high point — that compares with a last trade of $4.75. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 08/02/2012 | Richard N. Nottenburg | Director | 7,500 | $5.33 | $39,965.25 |
According to the ETF Finder at ETF Channel, PMCS makes up 1.86% of the SPDR S&P Semiconductor ETF (AMEX: XSD)which is trading lower by about 1% on the day Friday.
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