Bristol-Myers: 5 Different Insiders Have Sold Shares This Month

Feb.20.14 | About: Bristol-Myers Squibb (BMY)

In this article, I will feature one healthcare 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%.

Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.

Click to enlarge

Insider selling during the last 30 days

Here is a table of Bristol-Myers' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Charles Bancroft CFO Feb 14 25,000 No 77,303 shares 24.4%
Brian Daniels SVP Feb 6 28,440 No 53,549 shares 34.7%
Joseph Caldarella SVP Feb 6 35,471 No 59,355 shares + 35,000 options 27.3%
Lewis Campbell Director Feb 5 2,500 No 0 shares 100%
James Cornelius Director Feb 4 100,000 No 400,732 shares 20.0%
Click to enlarge

There have been 191,411 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Bristol-Myers' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 191,411 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 105,000 0
June 2013 319,817 0
May 2013 795,984 0
April 2013 586,507 0
March 2013 236,872 0
February 2013 440,284 0
January 2013 143,350 0
Click to enlarge

There have been 2,819,225 shares sold, and there have been zero shares purchased by insiders since January 2013.


Bristol-Myers reported the full-year 2013 financial results on January 24 with the following highlights:

Revenue $16.4 billion
Net income $2.6 billion
Net debt $68 million
Click to enlarge


Bristol-Myers' 2014 guidance is as follows:

GAAP EPS $1.75-$1.90
Non-GAAP EPS $1.65-$1.80
Click to enlarge

Pipeline and upcoming milestones

Bristol-Myers' pipeline consists of the following candidates.

(Source: Investor presentation)


Bristol-Myers' competitors include AstraZeneca (NYSE:AZN), Pfizer (NYSE:PFE), and Roche (OTCQX:RHHBY). Here is a table comparing these companies.

Market Cap: 89.95B 83.28B 206.62B 254.03B
Employees: N/A N/A N/A 85,080
Qtrly Rev Growth (yoy): 0.06 -0.06 N/A 0.01
Revenue: 16.38B 25.71B 51.58B 52.08B
Gross Margin: 0.70 0.80 0.82 0.75
EBITDA: 4.20B 9.72B 23.11B 20.03B
Operating Margin: 0.18 0.27 0.33 0.34
Net Income: 2.56B 2.56B 11.34B 11.96B
EPS: 1.54 2.04 3.20 3.46
P/E: 35.47 32.48 9.97 21.59
PEG (5 yr expected): 2.28 -3.15 6.69 2.50
P/S: 5.49 3.24 4.01 4.88
Click to enlarge

Bristol-Myers has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities during the last six months.

Company Insider buying / shares Insider selling / shares
PFE 0 742,861
Click to enlarge

Only Bristol-Myers has seen intensive insider selling during the last 30 days.


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

There are 11 analyst buy ratings, nine neutral ratings, and one sell rating with an average price target of $53.71. Bristol-Myers has a $39 price target from the Point and Figure chart. I believe there is an opportunity for a short entry with the $39 price target. I would place a stop loss at $57, which is the all-time high. The five main reasons for the proposed short entry are bearish Point and Figure chart, bearish analyst price targets, relatively high P/E ratio, relatively high P/S ratio, and the intensive insider-selling activity.

Click to enlarge

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in BMY over 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.