Green Mountain Coffee Roasters: 9 Different Insiders Have Sold Shares This Month

| About: Keurig Green (GMCR)

In this article, I will feature one consumer 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%.

Green Mountain Coffee Roasters (NASDAQ:GMCR) is engaged in the specialty coffee and coffeemaker businesses in the United States and Canada.

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Insider selling during the last 30 days

Here is a table of Green Mountain Coffee Roasters' insider-trading activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Sylvain Toutant President, Canada Feb 10-11 10,921 No 325 shares + 16,843 options 38.9%
John Whoriskey President, US Sales, Marketing Feb 10-11 4,889 No 281 shares + 7,227 options 39.4%
Gerard Geoffrion President, International Feb 10 21,250 No 1,476 shares + 8,750 options 67.5%
Stephen Gibbs VP Feb 11 5,352 No

116 shares + 8,199 options

39.2%
Jules del Vecchio Director Feb 11 60,500 No 281,903 shares + 20,500 options 16.7%
Linda Longo-Kazanova VP Feb 10 10,000 No 1,639 shares + 20,000 options 31.6%
Barbara Carlini Director Feb 10 20,250 No 14,434 shares 58.4%
David Moran Director Feb 6 20,000 Yes 6,114 shares + 21,000 options 42.5%
Hinda Miller Director Feb 6 19,800 Yes 79,516 shares 19.9%
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There have been 172,962 shares sold by insiders during the last 30 days. David Moran and Hinda Miller 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 Green Mountain Coffee Roasters' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2014 0 172,962
January 2014 0 40,000
December 2013 0 0
November 2013 22,000 0
October 2013 0 0
September 2013 0 0
August 2013 17,000 31,750
July 2013 0 0
June 2013 0 100,000
May 2013 0 483,700
April 2013 0 270,000
March 2013 0 35,000
February 2013 0 70,000
January 2013 0 100,000
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There have been 39,000 shares purchased, and there have been 1,303,412 shares sold by insiders since January 2013.

Financials

Green Mountain Coffee Roasters reported the fiscal 2014 first-quarter, which ended December 28, financial results on February 5 with the following highlights:

Revenue $1.4 billion
Net income [GAAP] $138.2 million
Cash $348.7 million
Debt $259.8 million
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Outlook

Green Mountain Coffee Roasters' guidance is as follows:

Q2/2014 FY2014
Net sales growth low-to-mid single digits over the second quarter of fiscal year 2013 high single digits over fiscal year 2013
Non-GAAP EPS $0.93-$0.98 $3.75-$3.85
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Competition

Green Mountain Coffee Roasters' competitors include Nestle S.A. (OTCPK:NSRGY), and Starbucks (NASDAQ:SBUX). Here is a table comparing these companies.

Company GMCR NSRGY SBUX
Market Cap: 17.92B 236.42B 56.10B
Employees: 6,300 339,000 182,000
Qtrly Rev Growth (yoy): 0.04 0.05 0.12
Revenue: 4.41B 101.39B 15.34B
Gross Margin: 0.38 0.48 0.57
EBITDA: 1.04B 19.21B 3.05B
Operating Margin: 0.18 0.16 0.15
Net Income: 513.88M 11.56B 116.80M
EPS: 3.37 3.62 0.15
P/E: 36.06 20.41 481.49
PEG (5 yr expected): 1.90 5.35 1.43
P/S: 4.05 2.36 3.64
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Green Mountain Coffee Roasters has the highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
NSRGY N/A N/A
SBUX 7,000 739,307
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Only Green Mountain Coffee Roasters has seen intensive insider selling during the last 30 days.

Conclusion

There have been nine different insiders selling Green Mountain Coffee Roasters, and there have not been any insiders buying Green Mountain Coffee Roasters during the last 30 days. All nine of these insiders decreased their holdings by more than 10%. Green Mountain Coffee Roasters has an insider ownership of 0.10%.

Before going short Green Mountain Coffee Roasters, 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.