Trimble Navigation: 5 Different Insiders Have Sold Shares This Month

| About: Trimble Navigation (TRMB)

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%.

Trimble Navigation (NASDAQ:TRMB) designs and distributes positioning products and applications enabled by global positioning system, optical, laser, and wireless communications technology.

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Insider selling during the last 30 days

Here is a table of Trimble's insider-trading activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
William Hart Director Feb 13-14 6,000 No 211,804 shares 2.8%
Julie Shepard VP Feb 12 28,000 Yes 3,048 shares 90.2%
Mark Harrington VP Feb 12 29,460 Yes 6,180 shares + 49,500 options 34.6%
Jurgen Kliem VP Feb 12 42,000 Yes 350 shares + 28,000 options 59.7%
James Veneziano VP Feb 12 24,641 Yes 40,625 shares + 15,694 options 30.4%
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There have been 130,101 shares sold by insiders during the last 30 days. Julie Shepard, Mark Harrington, Jurgen Kliem, and James Veneziano 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 Trimble's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 130,101 0
January 2014 51,200 0
December 2013 54,917 0
November 2013 241,026 0
October 2013 24,042 0
September 2013 7,958 0
August 2013 113,000 1,913
July 2013 0 0
June 2013 0 0
May 2013 452,234 0
April 2013 0 0
March 2013 0 0
February 2013 160,000 0
January 2013 19,600 0
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There have been 1,254,078 shares sold, and there have been 1,913 shares purchased by insiders since January 2013.

Financials

Trimble reported the full-year 2013 financial results on February 11 with the following highlights:

Revenue $2.3 billion
Net income $218.9 million
Cash $147.2 million
Debt $758.5 million
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Outlook

Trimble's first-quarter guidance is as follows:

Revenue $610-$630 million
GAAP EPS $0.23-$0.26
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Competition

Trimble's competitors include Garmin (NASDAQ:GRMN). Here is a table comparing these two companies.

Company TRMB GRMN
Market Cap: 9.60B 9.00B
Employees: N/A 9,777
Qtrly Rev Growth (yoy): 0.16 -0.04
Revenue: 2.29B 2.64B
Gross Margin: 0.56 0.53
EBITDA: 449.64M 641.04M
Operating Margin: 0.11 0.21
Net Income: 218.85M 578.12M
EPS: 0.84 2.94
P/E: 44.25 15.67
PEG (5 yr expected): 1.53 2.58
P/S: 4.17 3.42
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Trimble has a higher P/S ratio than Garmin. In Garmin, there have been 55,995 shares sold, and there have been zero shares purchased by insiders during the last six months. Only Trimble has seen intensive insider selling during the last 30 days.

Conclusion

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

Before going short Trimble, 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, relatively high P/E 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.