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

Mar. 9.14 | About: Pharmacyclics, Inc. (PCYC)

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.

Click to enlarge

Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Maria Fardis COOA March 5 3,000 No 2,988 shares + 56,500 options 4.8%
Gregory Hemmi SVP March 5 15,000 No 38,004 shares + 88,515 options 10.6%
Jesse McGreivy CMO March 5 6,563 No 0 shares + 18,958 options 25.7%
Paula Boultbee EVP March 4-5 20,000 No 2,145 shares + 180,000 options 9.9%
Eric Halvorsen Director March 4 3,472 No 1,000 shares + 12,500 options 20.5%
Betty Chang VP March 4 17,500 No 3,754 shares + 7,500 options 60.9%
Richard van den Broek Director Feb 25-27 78,835 No 29,610 shares 72.7%
Click to enlarge

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.

Month Insider selling / shares Insider buying / shares
March 2014 65,535 0
February 2014 78,835 0
January 2014 0 0
December 2013 99,000 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 18,750 0
May 2013 77,716 0
April 2013 0 0
March 2013 0 0
February 2013 32,000 0
January 2013 42,645 0
Click to enlarge

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
Click to enlarge

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.

Click to enlarge

(Source: Investor presentation)

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

Click to enlarge

(Source: Investor presentation)

Competition

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

Company PCYC RHHBY GSK
Market Cap: 9.72B 125.83B 133.03B
Employees: N/A 85,080 99,451
Qtrly Rev Growth (yoy): 1.13 0.01 0.02
Revenue: 260.17M 52.08B 42.60B
Gross Margin: 0.66 0.75 0.70
EBITDA: 99.90M 20.03B 13.94B
Operating Margin: 0.38 0.34 0.28
Net Income: 67.01M 11.96B 8.74B
EPS: 0.87 3.46 3.55
P/E: 151.20 10.69 15.63
PEG (5 yr expected): 10,276.60 2.53 1.59
P/S: 38.49 2.44 3.14
Click to enlarge

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.

Click to enlarge

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