Gannett: 3 Different Insiders Have Sold Shares This Month

| About: Gannett Co., (GCI)

In this article, I will feature one media 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%.

Gannett (NYSE:GCI) operates as a media and marketing solutions company in the United States and internationally.

Click to enlarge

Insider selling during the last 30 days

Here is a table of Gannett'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
Todd Mayman SVP Dec 24 68,750 No 26,471 shares + 41,250 options 50.4%
David Lougee President, Gannett Broadcasting Dec 24 129,204 No 11,264 shares + 54,500 options 66.3%
Maryam Banikarim SVP Dec 24 12,500 No 1,944 shares + 12,500 options 46.4%
Click to enlarge

There have been 210,454 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 Gannett's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
December 2013 210,454 0
November 2013 0 0
October 2013 30,500 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 67,499 0
March 2013 111,750 0
February 2013 16,250 0
January 2013 0 0
Click to enlarge

There have been 436,453 shares sold, and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.

Financials

Gannett reported the third-quarter financial results on October 21 with the following highlights:

Revenue $1.3 billion
Net income $79.7 million
Cash $811.4 million
Debt $2.0 billion
Click to enlarge

Competition

Gannett's competitors include The McClatchy Company (NYSE:MNI), and The New York Times Company (NYSE:NYT). Here is a table comparing these companies.

Company GCI MNI NYT
Market Cap: 6.66B 287.51M 2.31B
Employees: 30,700 6,640 5,363
Qtrly Rev Growth (yoy): -0.04 -0.04 0.02
Revenue: 5.31B 1.27B 2.00B
Gross Margin: 0.45 0.56 0.59
EBITDA: 1.06B 288.71M 297.24M
Operating Margin: 0.16 0.14 0.11
Net Income: 401.02M -23.74M 132.40M
EPS: 1.71 -0.28 1.12
P/E: 17.09 N/A 13.78
PEG (5 yr expected): 1.78 N/A -8.05
P/S: 1.26 0.22 1.16
Click to enlarge
Click to enlarge

Gannett has the highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
MNI 0 114,197
NYT 15,370 123,207
Click to enlarge

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

Conclusion

There have been three different insiders selling Gannett, and there have not been any insiders buying Gannett during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Gannett has an insider ownership of 0.24%.

Before entering short Gannett, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are relatively high P/S ratio, 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.