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There was intensive insider selling in Emcore (EMKR) in late January to early February time period, when the stock was trading above $6. The stock is currently trading at $4.21 or 37.6% below the peak made in early February.

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With this episode in mind, I screened for stocks which have seen recent intensive insider selling. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

In this article, I will feature three stocks that met these three criteria of intensive insider selling in the last 30 days.

1. Wynn Resorts (WYNN) engages in the development, ownership, and operation of destination casino resorts.

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Insider selling by insider (last 30 days)

  • Linda Chen sold 20,000 shares on May 6 and currently holds 164,600 shares or 0.2% of the company. Linda Chen serves as the President of Wynn International Marketing.
  • Alvin Shoemaker sold 5,000 shares on May 8 and currently holds 2,500 shares or less than 0.1% of the company. Alvin Shoemaker serves as a director of the company.
  • Marc Schorr sold 50,000 shares on May 6 and currently holds 229,025 shares or 0.2% of the company. Marc Schorr is the Chief Operating Officer of the company.
  • Matt Maddox sold 18,600 shares on May 6 and currently holds 97,755 shares or 0.1% of the company. Matt Maddox is the company's Chief Financial Officer and Treasurer.
  • Kimmarie Sinatra sold 15,600 shares on May 6 and currently holds 75,287 shares or less than 0.1% of the company. Kimmarie Sinatra is the General Counsel and Secretary of the company.
  • Robert Miller sold 5,000 shares on April 30 and currently holds 12,500 shares or less than 0.1% of the company. Robert Miller has served as a Director of the company since October 2002.

Insider selling by calendar month

Here is a table of Wynn's insider trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 2013109,2000
April 20135,0000
March 201300
February 201300
January 201300

The month of May has seen the most insider selling this year.

Financials

The company reported the first-quarter financial results on April 25 with the following highlights:

Revenue$1.4 billion
Net income$203.0 million
Cash$2.3 billion
Debt$5.8 billion

Competition

Wynn's competitors include Caesars Entertainment Corporation (CZR), Las Vegas Sands (LVS) and MGM Resorts International (MGM). Here is a table comparing these companies.

CompanyWYNNCZRLVSMGMIndustry Average (Resorts & Casinos)
Market Cap:13.91B1.89B46.93B7.19B13.58B
Employees:16,00068,00046,00050,0501,000.00
Qtrly Rev Growth (yoy):0.05-0.030.200.078.93
Revenue:5.22B8.52B11.67B8.87B4.08B
Gross Margin:0.720.470.740.370.77
EBITDA:1.52B1.77B3.50B1.84B893.84M
Operating Margin:0.220.100.220.100.13
Net Income:564.43M-1.28B1.60B-1.54BN/A
EPS:5.59-11.461.93-3.170.17
P/E:24.84N/A29.51N/A32.73
PEG (5 yr expected):1.88N/A1.48-3.860.74
P/S:2.670.224.020.813.33

Wynn is trading below the industry average P/S ratio.

My analysis

There have been six insider sell transactions and there have not been any insider buy transactions during the last 30 days. The stock is trading at a P/E ratio of 24.84 and a forward P/E ratio of 19.89. The company has a book value of -$2.59 per share and the stock has a dividend yield of 2.88%. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are negative book value and the intensive insider selling activity.

2. Synchronoss Technologies (SNCR) provides software-based activation and personal cloud solutions for connected devices.

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Insider selling by insider (last 30 days)

  • Paula Hilbert sold 11,265 shares on April 30 - May 7 pursuant to an approved Rule 10b5-1 trading plan. Paula Hilbert currently holds 29,788 shares or less than 0.1% of the company. Paula Hilbert is Executive Vice President of Human Resources.
  • Patrick Doran sold 2,713 shares on April 22 - May 3 pursuant to an approved Rule 10b5-1 trading plan. Patrick Doran currently holds 38,597 shares or 0.1% of the company. Patrick Doran has been with Synchronoss since 2002 and serves as Chief Technology Officer.
  • Ronald Prague sold 7,795 shares on May 2 pursuant to an approved Rule 10b5-1 trading plan. Ronald Prague currently holds 30,758 shares or less than 0.1% of the company. Ronald Prague serves as Executive Vice President, General Counsel and Secretary and has been with Synchronoss Technologies since August of 2006.
  • Robert Garcia sold 9,956 shares on May 1 pursuant to an approved Rule 10b5-1 trading plan. Robert Garcia currently holds 93,066 shares or 0.2% of the company. Robert Garcia has been with Synchronoss since August 2000, and serves as President and Chief Operating Officer.
  • Lawrence Irving sold 10,000 shares on April 25-26 pursuant to an approved Rule 10b5-1 trading plan. Lawrence Irving currently holds 157,390 shares or 0.4% of the company. Lawrence Irving is Chief Financial Officer, Executive Vice President and Treasurer.
  • Stephen Waldis sold 55,000 shares on April 16-18 pursuant to an approved Rule 10b5-1 trading plan. Stephen Waldis currently holds 933,716 shares or 2.4% of the company. Stephen Waldis is Founder, Chairman and Chief Executive Officer of Synchronoss Technologies.

Insider selling by calendar month

Here is a table of Synchronoss' insider trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201331,5280
April 201391,3770
March 2013116,5180
February 201378,5510
January 201352,8570

There have been 370,831 shares sold and zero shares purchased this year.

Financials

The company reported the first-quarter financial results on May 1 with the following highlights:

Revenue$78.3 million
Net income$0.5 million
Cash$66.5 million
Debt$9.3 million

Outlook

The company's guidance for full-year 2013 is as follows:

  • Non-GAAP revenues are expected to be in the range of $335 million to $350 million, representing year-over-year growth of 22% to 27%.
  • Non-GAAP EPS of approximately $1.30 to $1.36.

The company' guidance for the second quarter 2013 is as follows:

  • Non-GAAP revenues in the range of $82 million to $84 million, which represents year-over-year growth of approximately 16% to 20%.
  • Non-GAAP EPS of approximately $0.28 to $0.31.

Competition

Synchronoss' competitors include Amdocs Limited (DOX), CSG Systems International (CSGS) and NeuStar (NSR). Here is a table comparing these companies.

CompanySNCRDOXCSGSNSRIndustry Average (Application Software)
Market Cap:1.15B5.86B698.87M3.08B470.39M
Employees:1,34020,0003,5421,543778.00
Qtrly Rev Growth (yoy):0.210.03-0.020.081.32
Revenue:287.41M3.29B752.49M848.22M91.77M
Gross Margin:0.590.350.490.780.73
EBITDA:62.74M612.43M139.97M376.52M28.63M
Operating Margin:0.130.140.120.330.22
Net Income:22.08M400.70M51.97M155.89MN/A
EPS:0.562.431.612.300.20
P/E:53.3914.9913.5120.2225.78
PEG (5 yr expected):1.141.272.410.900.70
P/S:3.991.780.933.635.13

Synchronoss is trading above the industry average P/E ratio, which could explain some of the insider selling.

My analysis

There have been eight insider sell transactions and there have not been any insider buy transactions during the last 30 days. The stock is trading at a P/E ratio of 53.39 and a forward P/E ratio of 18.34. The company has a book value of $9.72 per share. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider selling activity.

3. Onyx Pharmaceuticals (ONXX), a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally.

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Insider selling by insider (last 30 days)

  • Kaye Foster-Cheek sold 8,877 shares on May 7 pursuant to a 10b5-1 plan. Kaye Foster-Cheek currently holds 27,066 shares or less than 0.1% of the company. Kaye Foster-Cheek is Senior Vice President, Global Human Resources.
  • Paul Goddard sold 8,000 shares on April 10 - May 8 pursuant to a 10b5-1 plan. Paul Goddard currently holds 14,890 shares or less than 0.1% of the company. Paul Goddard has served as a Director since February 1997 and is currently the Lead Director of the company.
  • Suzanne Shema sold 4,051 shares on May 7 pursuant to a 10b5-1 plan. Suzanne Shema currently holds 34,618 shares or less than 0.1% of the company. Suzanne Shema is Executive Vice President, General Counsel and Corporate Secretary.
  • Thomas Wiggans sold 4,500 shares on May 6 pursuant to a 10b5-1 plan. Thomas Wiggans currently holds 8,965 shares or less than 0.1% of the company. Thomas Wiggans has served as a Director of the company since March 2005.
  • Antonio Grillo-López sold 48,164 shares on April 11-23 pursuant to a 10b5-1 plan. Antonio Grillo-López currently holds 6,600 shares or less than 0.1% of the company. Antonio Grillo-López, M.D. has served as a Director since September 2002.
  • Matthew Fust sold 1,347 shares on April 15 pursuant to a 10b5-1 plan. Matthew Fust currently holds 50,204 shares or less than 0.1% of the company. Matthew Fust is Executive Vice President and Chief Financial Officer.
  • Julianna Wood sold 9,948 shares on April 10 pursuant to a 10b5-1 plan. Julianna Wood currently holds 19,374 shares or less than 0.1% of the company. Julianna Wood is Vice President, Public Affairs.
  • Magnus Lundberg sold 10,000 shares on April 11 pursuant to a 10b5-1 plan. Magnus Lundberg currently holds 14,216 shares or less than 0.1% of the company. Magnus Lundberg has served as a Director since June 2000.

Insider selling by calendar month

Here is a table of Onyx's insider trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201323,4280
April 2013152,4780
March 201332,8230
February 201346,2150
January 201328,0610

The month of April has seen the most insider selling.

Financials

The company reported the first-quarter financial results on May 7 with the following highlights:

Revenue$145.5 million
Net loss$33.7 million
Cash$738.9 million
Debt$177.5 million

Upcoming milestones

Proteasome Inhibition: Phase 3 Kyprolis trials across all multiple myeloma lines

  • FOCUS trial interim results possible 2H13
  • ASPIRE trial interim results expected 4Q13 or later
  • ENDEAVOR trial underway
  • CLARION trial initiating
  • Oprozomib, oral proteasome inhibitor; preliminary data at IMW; updated data at EHA; advancing new tablet formulation

Stivarga: Bayer (BAYZF.PK) executing a global development program

  • Phase 3 trial initiated: second-line liver cancer following progression on Nexavar
  • Phase 3 trial planned 2H13: colorectal cancer following resection of liver metastases

Nexavar: Potential in additional indications

  • DECISION data in differentiated thyroid cancer plenary presentation at ASCO; sNDA filing in mid-2013
  • RESILIENCE trial in breast cancer results expected 1H14

Competition

Nexavar for unresectable liver cancer. Currently, there are no other targeted systemic therapies approved for unresectable liver cancer. However, there are several other therapies in development, including a Phase 2 trial of bevacizumab plus erlotinib and a Phase 2 trial of TKI 1258 versus Nexavar. Other drugs being studied in HCC include ramucirumab and everolimus. In addition, there are many existing approaches used in the treatment of unresectable liver cancer including alcohol injection, radiofrequency ablation, chemoembolization, cryoablation and radiation therapy.

Nexavar for advanced kidney cancer. Currently, six novel agents besides Nexavar have been approved for the treatment of advanced kidney cancer - Sutent, Torisel, Avastin, Afinitor, Votrient and Inlyta. In addition, AVEO Pharmaceuticals (AVEO) announced that tivozanib demonstrated superiority over sorafenib in the primary endpoint of progression-free survival in a global randomized Phase 3 clinical trial of patients with advanced renal cell carcinoma, and has submitted an NDA to the FDA seeking approval in this indication. Additional agents being studied versus Nexavar include Novartis' (NVS) dovitinib.

Kyprolis for multiple myeloma. Currently, there are three commonly-used agents approved in the U.S. for the treatment of patients with multiple myeloma - Velcade, Revlimid and Thalomid. Other approved agents include Pomalyst, approved by the FDA on February 8, 2013 for the relapsed and refractory patient population. Other potentially competitive therapies are in clinical development for multiple myeloma. Vorinistat, being developed by Merck & Co. (MRK), and panobinostat, being developed by Novartis, are being studied in combination with bortezomib for relapsed myeloma; and elotuzumab, being developed by Abbott Laboratories (ABT).

My analysis

There have been 11 insider sell transactions and there have not been any insider buy transactions during the last 30 days. The stock is trading at a forward P/E ratio of 368.65. The company is not expecting to be profitable for 2013. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are negative earnings and the intensive insider selling activity.

Source: 1 Casino, 1 Biotech And 1 Sofware Stock With Recent Intensive Insider Selling