Texas Instruments: 5 Different Insiders Have Sold Shares This Year

Jan.30.14 | About: Texas Instruments (TXN)

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%.

Texas Instruments (NYSE:TXN) engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
John Szczsponik SVP Jan 23-28 100,000 No 243,705 shares 29.1%
Brian Crutcher SVP Jan 28 50,000 No 515,708 shares 8.8%
Robert Novak SVP Jan 27 88,850 No

105,928 shares + 75,985 options

32.8%
Gregory Delagi SVP Jan 27 100,000 No 345,392 shares + 221,397 options 15.0%
Melendy Lovett SVP Jan 24 30,000 No 65,455 shares 31.4%
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There have been 368,850 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Texas Instruments' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
January 2014 368,850 0
December 2013 0 0
November 2013 27,550 0
October 2013 303,125 0
September 2013 35,000 0
August 2013 50,100 0
July 2013 1,265,625 0
June 2013 0 0
May 2013 905,102 0
April 2013 627,175 0
March 2013 5,000 0
February 2013 448,401 0
January 2013 629,847 0
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There have been 4,665,775 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Texas Instruments reported the full-year 2013 financial results on January 21 with the following highlights:

Revenue $12.2 billion
Net income $2.2 billion
Cash $3.8 billion
Debt $5.2 billion
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Outlook

Texas Instruments' guidance for the first quarter is as follows:

Revenue $2.83-$3.07 billion
EPS $0.36-$0.44
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Competition

Texas Instruments' competitors include Qualcomm (NASDAQ:QCOM), and STMicroelectronics (NYSE:STM). Here is a table comparing these companies.

Company TXN QCOM STM
Market Cap: 46.45B 121.62B 7.09B
Employees: N/A 31,000 48,460
Qtrly Rev Growth (yoy): 0.02 0.33 -0.07
Revenue: 12.20B 24.87B 8.23B
Gross Margin: 0.52 0.61 0.32
EBITDA: 4.20B 8.58B 475.00M
Operating Margin: 0.24 0.30 -0.05
Net Income: 2.13B 6.85B -892.00M
EPS: 1.91 3.91 -1.01
P/E: 22.46 18.41 N/A
PEG (5 yr expected): 1.90 0.85 -6.37
P/S: 3.81 4.89 0.86
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Texas Instruments has the second-highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
QCOM 0 3,762,297
STM N/A N/A
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Only Texas Instruments has seen intensive insider selling during the last 30 days.

Conclusion

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

Before going short Texas Instruments, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is 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.