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Insiders Invest in Airgain

- By Kyle Ferguson

Francis Egan and James Sims, directors of Airgain Inc. (AIRG), purchased a combined total of 10,562 shares of the company, according to SEC filings.

Sims purchased 5,990 shares of the company for $12.53 per share on March 7. Egan purchased 4,572 shares of the company for $12.48 per share on March 6.

Since the transactions, Airgain has gained an estimated 5%.

Headquartered in San Diego and founded in 2003, Airgain provides embedded antenna products, integration support and test services. The company is a leading provider of throughput optimized antenna systems and performance validation services, enabling high-performance wireless connectivity globally for in-home, enterprise and M2M applications.

Its antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set-top boxes, access points, routers, residential gateways, media adapters and digital televisions.

The company currently has 125 million enabled devices in the market, with 330 antenna products and 162 patents and applications worldwide.

Airgain recently announced a patent pending for its N5X20Q1SW smart antenna, which brings together multiple technologies. It is designed to support the smart antenna's diversity systems for embedded Wi-Fi. It can be used for applications such as smart homes, connectivity gateways, set-top boxes and enterprise Wi-Fi systems.

The company's new product could have a positive lasting impact on wireless technology in the future, which is potentially a great sign.

Airgain has a market cap of $123.45 million, a price-earnings ratio of 41.16, an enterprise value of $79.72 million, a price-book ratio of 2.70, a price-sales ratio of 2.13 and a quick ratio of 5.48.

According to GuruFocus, the company has a cash-debt ratio of 16.59, an equity-asset ratio of 0.80 and an interest coverage ratio of 19.39.

The company has an operating margin of 7.95%, a net margin of 8.59%, a return on assets of 14.41% and a return on capital of 428.81%.

Some positive indicators for Airgain are:

  • The company is trading an estimated 19% below what legendary gurus George Soros (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) paid when they each purchased stakes during the fourth quarter.
  • The company's price-book ratio is currently 2.65, which is close to its one-year low of 2.56.
  • The company's Altman Z-Score is 7.29, indicating the company is in the safe zone and is not in danger of filing for bankruptcy in the next two years.
  • The company's quick ratio is 5.48, ranking above 92% of the 453 companies in the global communication equipment industry.
  • The company has over 10 years of operating experience.

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.