Concur Technologies: 5 Different Insiders Have Sold Shares This Year

Feb. 7.14 | About: Concur Technologies, (CNQR)

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%.

Concur Technologies (NASDAQ:CNQR) provides integrated travel and expense management solutions for companies worldwide.

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Insider selling during the last 30 days

Here is a table of Concur'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
Francis Pelzer CFO Feb 5 1,000 Yes 33,869 shares 2.9%
John Torrey EVP Feb 4 3,434 No 13,285 shares 20.5%
Steve Singh CEO Feb 3 7,500 Yes 1,010,531 shares 0.7%
John Love EVP Feb 3 22,680 No 2,094 shares 91.5%
Rajeev Singh COO Jan 15 44,471 Yes 251,797 shares 15.0%
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There have been 79,085 shares sold by insiders during the last 30 days. Francis Pelzer, Steve Singh, and Rajeev Singh 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 Concur's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 34,614 0
January 2014 52,971 0
December 2013 11,000 0
November 2013 18,875 0
October 2013 11,000 0
September 2013 11,000 0
August 2013 47,204 0
July 2013 40,250 0
June 2013 11,000 0
May 2013 52,762 0
April 2013 10,700 0
March 2013 16,700 0
February 2013 95,555 0
January 2013 23,500 0
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There have been 437,131 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Concur reported the fiscal 2014 first-quarter, which ended December 31, financial results on January 29 with the following highlights:

Revenue $163.1 million
GAAP net loss $24.2 million
Cash $848.9 million
Debt $655.7 million
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Outlook

Concur expects 26% revenue growth for the fiscal second quarter.

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(Source: Earnings presentation)

Competition

Concur's competitors include International Business Machines (NYSE:IBM), SAP AG (NYSE:SAP), and Oracle (NYSE:ORCL). Here is a table comparing these companies.

Company CNQR IBM SAP ORCL Industry Average (Technical & System Software)
Market Cap: 6.35B 183.40B 91.08B 165.14B 11.27B
Employees: 3,800 N/A 66,572 120,000 1.61K
Qtrly Rev Growth (yoy): 0.33 -0.06 0.02 0.02 0.18
Revenue: 586.08M 99.75B 21.77B 37.55B 2.29B
Gross Margin: 0.69 0.49 0.70 0.82 0.69
EBITDA: 35.29M 24.30B 7.12B 16.29B 461.80M
Operating Margin: -0.03 0.20 0.27 0.39 0.05
Net Income: -36.58M 16.48B 4.31B 11.05B N/A
EPS: -0.66 14.94 3.61 2.35 0.17
P/E: N/A 11.69 21.12 15.63 45.79
PEG (5 yr expected): 8.84 1.10 1.64 1.17 3.76
P/S: 10.88 1.82 4.11 4.31 4.91
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Concur 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
IBM 1,000 225,001
SAP N/A N/A
ORCL 0 10,180,866
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Only Concur has seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Concur, and there have not been any insiders buying Concur during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Concur has an insider ownership of 1.80%.

Before going short Concur, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are relatively high P/S ratio, negative earnings, 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.