Qorvo, Inc. (NASDAQ:QRVO) President and CEO Robert A. Bruggeworth has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on August 15, involved the sale of 16,664 shares of Qorvo common stock at a price of $109.73 per share, totaling over $1.8 million.
The sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Bruggeworth on February 5, 2024. Rule 10b5-1 trading plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
Following the sale, Bruggeworth continues to hold a substantial amount of Qorvo stock. The filing indicated that, after the disposal of shares, he directly owns 208,986 shares. Additionally, he indirectly holds 11,707 shares through a Grantor Retained Annuity Trust, as noted in the filing.
Investors and market watchers often pay close attention to insider sales as they may provide insights into an executive's perspective on the company's future performance. However, it should be noted that such transactions can be motivated by a variety of personal financial considerations and not necessarily a reflection of the company's outlook.
Qorvo, a leading provider of core technologies and radio frequency solutions for mobile, infrastructure, and aerospace/defense applications, has not commented on this transaction. Investors interested in Qorvo's stock movements and insider transactions can continue to monitor SEC filings for the latest updates.
In other recent news, Qorvo Inc . has been the subject of several analyst reports following its recent financial performance. TD Cowen reaffirmed its Hold rating on Qorvo, raising the price target from $110.00 to $125.00, reflecting the company's potential for modest growth by Fiscal Year 2025. This adjustment was based on Qorvo's recent earnings report, which slightly exceeded expectations, and a modestly raised forecast.
Despite the positive outlook, TD Cowen expressed concerns about Qorvo's gross margin recovery trajectory, citing challenges such as higher cost inventory and fluctuations in quarterly revenue mix. Piper Sandler also adjusted its price target for Qorvo from $105.00 to $120.00, maintaining a neutral stance, following the company's earnings that surpassed expectations and a guidance that exceeded consensus.
Qorvo reported mixed results for its first quarter of fiscal year 2025, with a 6% sequential decline in revenue to $887 million, but a 36% increase compared to the same period last year. The non-GAAP gross margin stood at 40.9%, with a non-GAAP diluted EPS of $0.87. Qorvo also repurchased $125 million of stock during the quarter.
Craig-Hallum maintained a Buy rating on Qorvo and increased the price target to $142.00 from $125.00, noting Qorvo's enhanced involvement with Apple (NASDAQ:AAPL) as a significant factor. Looking ahead, Qorvo anticipates a revenue of approximately $1.025 billion for the next quarter, with a non-GAAP gross margin between 46% and 47%, and non-GAAP diluted EPS between $1.75 and $1.95.
InvestingPro Insights
In light of the recent insider sale by Qorvo's CEO, it's pertinent to consider the company's financial health and future prospects. According to InvestingPro data, Qorvo has demonstrated robust revenue growth over the last twelve months as of Q1 2025, with an impressive 36.17% quarterly revenue growth. This indicates a strong market demand for the company's radio frequency solutions and technologies. Moreover, the company's gross profit margin stands at a healthy 39.86%, reflecting its ability to maintain profitability in its operations.
Two InvestingPro Tips that might interest investors in this context are the aggressive share buybacks by management and the expectation of net income growth this year. Share buybacks can signal management's confidence in the company's value, which might be a reassuring factor for investors following the CEO's stock sale. Additionally, the anticipation of net income growth suggests a positive outlook for the company's financial performance.
Investors looking for a deeper dive into Qorvo's metrics will find more insights on InvestingPro, including a total of 8 additional InvestingPro Tips that could further inform investment decisions. For example, the company operates with a moderate level of debt and analysts have revised their earnings upwards for the upcoming period, which might be seen as indicators of a stable financial structure and promising future earnings potential.
For those evaluating the stock's valuation, the current P/E ratio stands at 45.8, which could be compared to industry benchmarks to assess relative value. It's also worth noting that although Qorvo does not pay a dividend, this could be a strategic decision to reinvest earnings into growth opportunities.
With a market cap of $10.55 billion and a fair value estimation by analysts at $125, Qorvo presents an interesting case for investors. As always, it's advisable to look beyond insider transactions and consider a comprehensive set of factors when evaluating a company's stock.
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