Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

In this article, I will feature one tech stock 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%.

Agilent Technologies (NYSE:A) provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Fred StrohmeierSVPDec 234,935No25,824 shares16.0%
Didier HirschCFODec 1825,539No59,425 shares30.1%
Guy SeneSVPDec 105,716No33,938 shares14.4%
Jean HalloranSVPDec 5-655,127No75,544 shares42.2%

There have been 91,317 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 Agilent's insider-trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
December 201391,3170
November 2013167,9110
October 201300
September 2013266,4690
August 201300
July 201300
June 201343,2530
May 201318,3310
April 201300
March 201373,9430
February 201300
January 201310,5580

There have been 671,782 shares sold, and there have been zero shares purchased by insiders this year.


Agilent reported the fiscal 2013 full-year, which ended October 31, financial results on November 14 with the following highlights:

Revenue$6.8 billion
Net income$724 million
Cash$2.7 billion
Debt$2.7 billion

(click to enlarge)

(Source: November presentation)


Agilent's guidance is as follows:

Revenue$1.68-$1.70 billion$6.95-$7.15 billion

(click to enlarge)

(Source: November presentation)

Agilent expects completion of separation into two publicly traded companies by early November 2014.

(click to enlarge)

(Source: November presentation)


Agilent's competitors include Danaher (NYSE:DHR), Teradyne (NYSE:TER), and Thermo Fisher Scientific (NYSE:TMO). Here is a table comparing these companies.

Market Cap:19.07B53.63B3.31B39.85B
Qtrly Rev Growth (yoy):-0.030.06-0.070.03
Gross Margin:0.520.520.560.42
Operating Margin:
Net Income:724.00M2.54B126.06M1.32B
PEG (5 yr expected):1.861.982.13N/A

Agilent has the second-weakest revenue growth among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares

Only Agilent has seen intensive insider selling during the last 30 days.


There have been four different insiders selling Agilent, and there have not been any insiders buying Agilent during the last 30 days. All four of these insiders decreased their holdings by more than 10%. Agilent has an insider ownership of 0.30%.

Before entering short Agilent, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are weak revenue growth, and the intensive insider-selling activity.

Source: Agilent Technologies: 4 Different Insiders Have Sold Shares This Month