- 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.
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%|
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|
There have been 414,481 shares sold, and there have been zero shares purchased by insiders since January 2013.
Pharmacyclics reported the full-year 2013 financial results on February 20 with the following highlights:
|GAAP net income||$67.0 million|
The seven insiders sold their shares after these results.
Pharmacyclics expects to end calendar year 2014 in excess of $600 million in cash.
Pharmacyclics' pipeline consists of the following product candidates.
(Source: Investor presentation)
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||1.13||0.01||0.02|
|PEG (5 yr expected):||10,276.60||2.53||1.59|
Pharmacyclics has the highest P/S ratio among these three companies. Pharmacyclics has also the fastest revenue growth among these three companies.
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.
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.