Bridgepoint Education: 5 Different Insiders Have Sold Shares During The Last 30 Days

Dec.10.13 | About: Bridgepoint Education, (BPI)

In this article, I will feature one postsecondary education company that has seen intensive insider selling during the last 30 days. 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%.

Bridgepoint Education (NYSE:BPI) provides postsecondary education services.

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Insider selling during the last 30 days

Here is a table of Bridgepoint Education's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Rodney Sheng EVP Dec 2 51,563 Yes 115,333 shares + 381,772 options 9.4%
Charlene Dackerman SVP Dec 4 6,316 Yes 1,140 shares + 51,179 options 10.8%
Jane McAuliffe EVP Dec 3 15,270 Yes 2,333 shares + 148,335 options 9.2%
Brandon Pope VP Dec 2 2,537 No

491 shares + 18,419 options

11.8%
Ryan Craig Director Nov 14-19 56,038 Yes 56,038 shares 50.0%
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There have been 131,724 shares sold by insiders during the last 30 days. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Bridgepoint Education's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
December 2013 75,686 0
November 2013 56,038 0
October 2013 0 0
September 2013 9,414 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 141,138 shares sold and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.

Financials

Bridgepoint Education reported the third-quarter financial results on November 5 with the following highlights:

Revenue $185.6 million
Net income $10.1 million
Cash $553.3 million
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BPI Revenue (Quarterly) Chart

BPI Revenue (Quarterly) data by YCharts

Competition

Bridgepoint Education's competitors include Apollo Education Group (NASDAQ:APOL), Corinthian Colleges (NASDAQ:COCO), and DeVry Education Group (NYSE:DV). Here is a table comparing these companies.

Company BPI APOL COCO DV
Market Cap: 989.46M 2.84B 150.59M 2.24B
Employees: 4,120 44,000 10,100 9,833
Qtrly Rev Growth (yoy): -0.26 N/A -0.09 -0.06
Revenue: 814.53M 3.68B 1.56B 1.94B
Gross Margin: 0.51 0.57 0.38 0.50
EBITDA: 127.67M 763.17M 84.27M 308.95M
Operating Margin: 0.13 0.16 0.02 0.11
Net Income: 65.84M 248.53M 1.20M 97.72M
EPS: 1.19 2.19 -0.21 1.05
P/E: 15.26 11.44 N/A 33.68
PEG (5 yr expected): -0.49 -1.01 5.42 3.37
P/S: 1.22 0.77 0.10 1.15
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Bridgepoint Education has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
APOL 0 735,596
COCO 0 0
DV 5,005 110,895
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Only Bridgepoint Education has seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Bridgepoint Education and there have not been any insiders buying Bridgepoint Education during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Bridgepoint Education has an insider ownership of 0.40%.

There are three analyst buy ratings, five neutral ratings, and zero sell ratings with an average price target of $18.00. Bridgepoint Education is trading at a P/E ratio of 15.26 and a forward P/E ratio of 28.82. Bridgepoint Education has a book value of $10.14 per share.

Before entering short Bridgepoint Education, I would like to get a bearish confirmation from the Point and Figure chart. The four main reasons for the proposed short entry are relatively high P/S ratio, negative revenue growth, bearish analyst price targets, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.