It Could Be Curse In Disguise For Integrated Device Technology, Inc. (IDTI)

SR VP OPERATIONS & CTO Chittipeddi Sailesh sold 33,300 shares in Integrated Device Technology, Inc. (NASDAQ:IDTI) for $182,678 in transaction occurred on 2018/09/14. After making this transaction, the SR VP OPERATIONS & CTO owns a direct stake of 1,565,433 shares, worth $8,768,544, as per the last closing price. On 2018/09/05 Shepard David, SR. VP & Corporate GM at IDTI, dumped 3,000 shares at an average price of $42.65 per share. The selling total is valued at $3,483,312.

Separately, it had been reported that some other IDTI insiders also took part of the insider trading activity. PRESIDENT & CEO, Waters Gregory L had divested 20,000 shares for $770,370 through a trade on 2018/09/04. Following this activity, the insider holds 852,600 shares worth $36,977,760 as of recent close. Wall Street’s most bullish Integrated Device Technology, Inc. (NASDAQ:IDTI) analysts are predicting the share price to blow past $49 per share during the next 12 months. The current median share price forecast by them is $49, suggesting that the stock could increase 2.08% in that time frame. The average price target of $46.88 calls for a nearly -2.33% increase in the stock price.

Integrated Device Technology, Inc. (IDTI) trading activity significantly improved as the volume at ready counter increased to 3,375,399 shares versus 2,301,945 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,926,432 shares. The share price rose 0% in recent trade and currently has a stock-market value of $6.19B. The shares finished at $48, after trading as low as $47.76 earlier in the session. It hit an intraday high Thursday at $48.15. The stock is now 78.04% above against its bear-market low of $26.96 on February 08, 2018. It has retreated -0.4% since it’s 52-week high of $48.19 reached in December. Now the market price is up 62.38% on the year and up 61.45% YTD.

IDTI’s 50 day simple moving average (SMA 50) price is $46.94 and its 200-day simple moving average (SMA 200) price is $37.46. The company’s stock currently has a total float of 128.04M shares. Its weekly volatility is hovering around 0.54% and felt 0.65% volatility in price over a month. On the upside, the share price will test short term resistance at around $48.18. On a downside, the stock is likely to find some support, which begins at $47.79. The failure to get near-term support could push it to $47.58.

It had seen a negative analyst call from Craig Hallum, which downgraded the stock from Buy to Hold on October 17. Analysts at Cowen, shed their positive views on September 11 by lowering it fromOutperform to Market Perform. Brokerage firm Craig Hallum, looks cautious as they stick to prior recommendation of Buy, in a call on September 04. However, they did change the target price from $41 to $48. Needham analysts came out with bearish views on September 04 when the call was made. They think the stock is now Hold compared to to their prior call for Buy.

When looking at valuations, Integrated Device Technology, Inc. (IDTI) has a pricey P/E of 48x as compared to industry average of 7.69x. Moreover, it trades for 22.76 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 9.58x price/book and 6.84x price/sales. Compared to others, Integrated Device Technology, Inc. is in a different league with regards to profitability, having net margins of 2.1%. To put some perspective around this, the industry’s average net margin is 21.22%. IDTI’s ROE is 2.8%, which is also considerably worse than the industry’s ROE of 9.21%. It’s also very liquid in the near term, with a current ratio of 4.6. The stock has a debt/capital of 0.77.

Shares of Integrated Device Technology, Inc. (IDTI) have gained 3.9% since the company’s Mar-18 earnings report. Over the past 12 fiscal quarters, Integrated Device Technology, Inc. (NASDAQ:IDTI) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 2 quarters (16%), whereas at 4 occasion EPS met analyst expectations. IDTI last reported earnings on October 29, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.47 per share, -87.86% change on the same period last year. That was better than consensus for $0.45. Revenue for the recent quarter stood at $235.48 million, up 15% on last year and above the $233.75 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $220.5 million to $223.3 million, which should be compared with $0 generated last year.