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Summary

  • The stock was sold by seven insiders within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Five of these seven insiders decreased their holdings by more than 10%.

Pharmacyclics (NASDAQ:PCYC) is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative small-molecule drugs for the treatment of cancer and immune-mediated diseases.

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Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Maria FardisCOOAMarch 53,000No2,988 shares + 56,500 options4.8%
Gregory HemmiSVPMarch 515,000No38,004 shares + 88,515 options10.6%
Jesse McGreivyCMOMarch 56,563No0 shares + 18,958 options25.7%
Paula BoultbeeEVPMarch 4-520,000No2,145 shares + 180,000 options9.9%
Eric HalvorsenDirectorMarch 43,472No1,000 shares + 12,500 options20.5%
Betty ChangVPMarch 417,500No3,754 shares + 7,500 options60.9%
Richard van den BroekDirectorFeb 25-2778,835No29,610 shares72.7%

There have been 144,370 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

MonthInsider selling / sharesInsider buying / shares
March 201465,5350
February 201478,8350
January 201400
December 201399,0000
November 201300
October 201300
September 201300
August 201300
July 201300
June 201318,7500
May 201377,7160
April 201300
March 201300
February 201332,0000
January 201342,6450

There have been 414,481 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Pharmacyclics reported the full-year 2013 financial results on February 20 with the following highlights:

Revenue$260.2 million
GAAP net income$67.0 million
Cash$635.6 million

The seven insiders sold their shares after these results.

Outlook

Pharmacyclics expects to end calendar year 2014 in excess of $600 million in cash.

Pipeline

Pharmacyclics' pipeline consists of the following product candidates.

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(Source: Investor presentation)

Imbruvica was approved on November 13, 2013 in MCL, and on February 12, 2014 in CLL.

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(Source: Investor presentation)

Competition

Pharmacyclics' competitors include Roche (OTCQX:RHHBY), and GlaxoSmithKline (NYSE:GSK). Here is a table comparing these companies.

CompanyPCYCRHHBYGSK
Market Cap:9.72B125.83B133.03B
Employees:N/A85,08099,451
Qtrly Rev Growth (yoy):1.130.010.02
Revenue:260.17M52.08B42.60B
Gross Margin:0.660.750.70
EBITDA:99.90M20.03B13.94B
Operating Margin:0.380.340.28
Net Income:67.01M11.96B8.74B
EPS:0.873.463.55
P/E:151.2010.6915.63
PEG (5 yr expected):10,276.602.531.59
P/S:38.492.443.14

Pharmacyclics has the highest P/S ratio among these three companies. Pharmacyclics has also the fastest revenue growth among these three companies.

Conclusion

There have been seven different insiders selling Pharmacyclics, and there have not been any insiders buying Pharmacyclics during the last 30 days. Five of these seven insiders decreased their holdings by more than 10%. Pharmacyclics has an insider ownership of 18.40%.

Pharmacyclics has a $118 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $118 price target. I would place a stop loss at $155, which is the all-time high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Source: Pharmacyclics: 7 Different Insiders Have Sold Shares During The Last 30 Days