Agilent Technologies: 4 Different Insiders Have Sold Shares This Month

Dec.27.13 | About: Agilent Technologies (A)

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.

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Insider selling during the last 30 days

Here is a table of Agilent'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
Fred Strohmeier SVP Dec 23 4,935 No 25,824 shares 16.0%
Didier Hirsch CFO Dec 18 25,539 No 59,425 shares 30.1%
Guy Sene SVP Dec 10 5,716 No 33,938 shares 14.4%
Jean Halloran SVP Dec 5-6 55,127 No 75,544 shares 42.2%
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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.

Month Insider selling / shares Insider buying / shares
December 2013 91,317 0
November 2013 167,911 0
October 2013 0 0
September 2013 266,469 0
August 2013 0 0
July 2013 0 0
June 2013 43,253 0
May 2013 18,331 0
April 2013 0 0
March 2013 73,943 0
February 2013 0 0
January 2013 10,558 0
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There have been 671,782 shares sold, and there have been zero shares purchased by insiders this year.

Financials

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
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(Source: November presentation)

Outlook

Agilent's guidance is as follows:

Q1/2014 FY2014
Revenue $1.68-$1.70 billion $6.95-$7.15 billion
EPS $0.65-$0.67 $3.03-$3.33
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(Source: November presentation)

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

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(Source: November presentation)

Competition

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

Company A DHR TER TMO
Market Cap: 19.07B 53.63B 3.31B 39.85B
Employees: 20,600 63,000 3,600 38,900
Qtrly Rev Growth (yoy): -0.03 0.06 -0.07 0.03
Revenue: 6.78B 18.83B 1.39B 12.88B
Gross Margin: 0.52 0.52 0.56 0.42
EBITDA: 1.39B 4.23B 307.02M 2.73B
Operating Margin: 0.15 0.18 0.12 0.13
Net Income: 724.00M 2.54B 126.06M 1.32B
EPS: 2.10 3.58 0.54 3.59
P/E: 27.36 21.50 32.32 30.69
PEG (5 yr expected): 1.86 1.98 2.13 N/A
P/S: 2.80 2.84 2.39 3.07
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Agilent has the second-weakest revenue growth among these four companies.

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

Company Insider buying / shares Insider selling / shares
DHR 0 1,275,950
TER 0 407,753
TMO 0 507,764
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Only Agilent has seen intensive insider selling during the last 30 days.

Conclusion

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.

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.