In what seems to be turning into a regular pattern, several top executives of GT Advanced Technologies (NASDAQ:GTAT), the company manufacturing sapphire crystal boules for Apple Inc. (NASDAQ:AAPL) in Arizona, have sold off more of their stock in the company. Analysts also appear to be in sharp disagreement over the company’s stock value. Though most give it a “buy” rating, price targets range from Zacks Investment Research’s pessimistic $17.10 (accompanied, it should be noted, by a “neutral” rating) to Dougherty & Co.’s $29.00.
One of the insider sales was relatively small compared to the holder’s total portfolio, and may simply reflect a need for some immediate cash rather than a significant investment decision. GTAT Vice President Ho Il Kim sold off a total of 6,305 directly owned shares on July 1st, 2014, according to a U.S. SEC filing. Mr. Kim first exercised his option to buy 2,789 shares of GTAT for $5.44 each, then sold them immediately at $19.07 each. He then sold an additional 3,516 shares, leaving him with 44,991 shares. Overall, his portfolio of GTAT securities declined by approximately 7.3%.
The other insider sale was one initiated by Thomas Gutierrez, who sold 9,232 GTAT shares on July 3rd, 2014. Though this is relatively small also compared to his remaining 168,899 shares, it is in addition to the 150,000 stocks he has already sold off starting in May of this year. Mr. Gutierrez, in short, has drawn down his GTAT portfolio by close to 50% in the past two months, which is a considerably more significant figure.
Regardless of the exact position that its leaders take on the value of its shares, however, GTAT appears to still be riding the wave of investor confidence generated by its massive orders from Apple, Inc. (AAPL). In the first few days of July, its stock value has jumped 5.11%. Though the executive stock sell-off could have some bearish influence, the stock’s outlook probably remains bullish, especially with the rollout of the iPhone 6 and iWatch looming ever closer.
However, the fact that its own executives are steadily divesting themselves of its shares calls GTAT’s future performance into some question. Additionally, it may indicate that Apple Inc. (AAPL) may not be planning to use sapphire crystal as widely as was at first believed when it funded creation of the Mesa, Arizona facility which GT Advanced Technologies is currently using to fulfill the Cupertino company’s orders.
