ViXS Systems (VXS.TO) hasn’t done much but go down since going public last year, but some of those closest to the company think its shares are now cheap.
Several ViXS insiders have made recent purchases of the stock in the open market. On October 8th, the company’s VP, Infrastructure and Networking Sales John Pomeroy bought 1000 shares at $1.13, following up on the purchase of 2000 shares at $1.17 he made on October 3rd.
Pomeroy was joined by the company’s Chief Technology Officer Indra Laksono, who bought 8000 shares at $1.15 on October 7th. And ViXS VP Worldwide Sales Perry Chappell bought 13,600 shares on October 3rd, at prices ranging from $1.15 to $1.20. Chappell’s buys were an averaging-down on the 30,000 shares he bought at $1.90 on July 30th.
The optimism inside ViXS is mirrored by at least one analyst’s view of the company.
Paradigm Capital analyst Daniel Kim says investments into emerging technologies have made ViXs a world leader in video processing. He says that concurrent with its loss of market valuation, the company has been positioning itself with to capitalize on the increasing demand for the transcoding and processing of next generation 4K Ultra HD and HEVC content. He points to recent design wins that have added to an already impressive product portfolio. “Now having the benefit of time to “reset the clock” with a heavy investment in R&D, VXS has emerged stronger than ever,” he says.
In a research report to clients On October 3rd, Kim initiated coverage of ViXS with a “Buy” rating and one-year target of $2.75, which implied a return of 150% at the time of publication.
At press time, shares of ViXS Systems were down 10.6% to $1.10.