Las Vegas Sands: 3 Different Insiders Have Sold Shares During The Last 30 Days

Jan.17.14 | About: Las Vegas (LVS)

In this article, I will feature one casino 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%.

Las Vegas Sands Corp. (NYSE:LVS) develops, owns, and operates integrated resorts in Asia and the United States.

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Insider selling during the last 30 days

Here is a table of Las Vegas Sands' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Michael Leven COO Dec 27-Jan 10 271,495 Yes 515,017 shares + 580,000 options 19.9%
Robert Goldstein EVP Dec 30-31 96,535 No 375,000 shares + 686,017 options 8.3%
George Tanasijevich Pres & CEO, Marina Bay Sands Dec 30 47,070 No 17,920 shares 72.4%
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There have been 415,100 shares sold by insiders during the last 30 days. Michael Leven sold shares pursuant to a Rule 10b5-1 plan. 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 Las Vegas Sands' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
January 2014 86,495 0
December 2013 513,605 0
November 2013 262,100 0
October 2013 0 0
September 2013 212,540 0
August 2013 6,250 0
July 2013 0 0
June 2013 147,000 0
May 2013 12,500 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 1,240,490 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of December has seen the most insider selling.

Financials

Las Vegas Sands reported the third-quarter financial results on October 17 with the following highlights:

Revenue $3.6 billion
GAAP net income $626.7 million
Cash $3.2 billion
Debt $9.8 billion
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(Source: Earnings presentation)

Upcoming milestones

Las Vegas Sands' upcoming milestones include the Parisian Macao expansion with a late 2015 opening.

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(Source: Earnings presentation)

Competition

Las Vegas Sands' competitors include Ceasars Entertainment Corporation (NASDAQ:CZR), MGM Resorts International (NYSE:MGM), and Wynn Resorts (NASDAQ:WYNN). Here is a table comparing these companies.

Company LVS CZR MGM WYNN
Market Cap: 66.10B 3.10B 12.63B 20.90B
Employees: 46,000 68,000 50,050 16,000
Qtrly Rev Growth (yoy): 0.32 -0.03 0.09 0.07
Revenue: 13.19B 8.34B 9.23B 5.39B
Gross Margin: 0.72 0.49 0.37 0.73
EBITDA: 4.30B 1.76B 1.93B 1.60B
Operating Margin: 0.25 0.11 0.12 0.23
Net Income: 2.16B -1.60B -1.34B 626.14M
EPS: 2.62 -13.23 -2.75 6.18
P/E: 30.65 N/A N/A 33.60
PEG (5 yr expected): 1.42 N/A -8.44 2.06
P/S: 5.01 0.37 1.37 3.88
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Las Vegas Sands has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
CZR 0 14,434
MGM

0

256,075
WYNN 0 154,200
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Only Las Vegas Sands has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Las Vegas Sands, and there have not been any insiders buying Las Vegas Sands during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Las Vegas Sands has an insider ownership of 0.10%.

Before entering short Las Vegas Sands, 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.