Boeing: 4 Different Insiders Have Sold Shares During The Last 30 Days

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 |  About: The Boeing Company (BA), Includes: LMT, NOC
by: Markus Aarnio

In this article, I will feature one industrial 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%.

The Boeing Company (NYSE:BA) designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide.

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Insider selling during the last 30 days

Here is a table of Boeing's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Shephard Hill SVP Feb 18 14,129 No 76,532 shares 15.6%
Raymond Conner Vice Chairman Feb 18 15,828 No 89,872 shares 15.0%
Gregory Smith CFO Feb 5 3,911 No 40,031 shares 8.9%
John Tracy SVP Feb 4 15,000 No 63,650 shares 19.1%
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There have been 48,868 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Boeing's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 48,868 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 480,800 0
July 2013 0 0
June 2013 0 0
May 2013 33,696 1,500
April 2013 87,604 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 650,968 shares sold, and there have been 1,500 shares purchased by insiders since January 2013.

Financials

Boeing reported the full-year 2013 financial results on January 29, with the following highlights:

Revenue $86.6 billion
Net income $4.6 billion
Cash $15.3 billion
Debt $9.6 billion
Backlog $441 billion
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(Source: Earnings presentation)

Outlook

Boeing's 2014 guidance is as follows:

Revenue $87.5-$90.5 billion
EPS $6.10-$6.30
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(Source: Earnings presentation)

Competition

Boeing's competitors include Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC). Here is a table comparing these companies.

Company BA LMT NOC
Market Cap: 95.84B 51.77B 26.23B
Employees: 168,400 115,000 65,300
Qtrly Rev Growth (yoy): 0.07 -0.05 -0.05
Revenue: 86.62B 45.36B 24.66B
Gross Margin: 0.15 0.10 0.22
EBITDA: 8.17B 5.34B 3.62B
Operating Margin: 0.07 0.10 0.13
Net Income: 4.58B 2.95B 1.95B
EPS: 5.96 9.14 8.35
P/E: 21.63 17.77 14.49
PEG (5 yr expected): 1.68 2.15 1.71
P/S: 1.10 1.14 1.05
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Boeing has the highest P/E ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
LMT 0 98,228
NOC 0 157,499
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Lockheed Martin and Northrop Grumman have also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Boeing, and there have not been any insiders buying Boeing during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Boeing has an insider ownership of 0.20%.

Boeing has a $96 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $96 price target. I would place a stop loss at $144, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/E ratio, and the intensive insider selling activity.

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