In this article, I will feature one services sector stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:
- The stock was sold by three or more insiders within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- At least two sellers decreased their holdings by more than 10%.
Myriad Genetics (MYGN) focuses on the development and marketing of predictive medicine, personalized medicine, and prognostic medicine tests primarily in the United States.
Insider selling during the last 30 days
Here is a table of Myriad's insider-trading activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Richard Marsh||EVP||Feb 14||20,960||No||17,165 shares||55.0%|
|Robert Harrison||CIO||Feb 12||13,707||No||324 shares||97.7%|
|Mark Capone||President, MGL||Feb 10||87,500||No||48,268 shares + 81,945 options||40.2%|
|James Evans||CFO||Feb 7||35,000||No||47,609 shares||42.4%|
|Peter Meldrum||CEO||Feb 5||123,940||Yes||55,656 shares||69.0%|
There have been 281,107 shares sold by insiders during the last 30 days. Peter Meldrum 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 Myriad's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 601,612 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of February 2014 has seen the most insider selling.
Myriad reported the fiscal 2014 second-quarter, which ended December 31, financial results on February 4 with the following highlights:
|Net income||$50.4 million|
Myriad's guidance for the fiscal year 2014 is as follows:
|Qtrly Rev Growth (yoy):||0.37||0.04||0.18||0.02|
|PEG (5 yr expected):||0.99||1.33||1.05||1.43|
Myriad has the highest P/S ratio among these four companies.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Only Myriad has seen intensive insider selling during the last 30 days.
There have been five different insiders selling Myriad, and there have not been any insiders buying Myriad during the last 30 days. All five of these insiders decreased their holdings by more than 10%. Myriad has an insider ownership of 0.20%.
There are six analyst buy ratings, nine neutral ratings, and four sell ratings with an average price target of $29.31. Before going short Myriad, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are bearish analyst price targets, and the intensive insider-selling activity.