Sohu.com: 5 Different Insiders Have Sold Shares During The Last 30 Days

Mar.11.14 | About: Sohu.com Inc. (SOHU)

Summary

The stock was sold by five insiders within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All five of these insiders decreased their holdings by more than 10%.

Sohu.com (NASDAQ:SOHU) provides online media, search, gaming, community, and mobile services in the People’'s Republic of China.

Click to enlarge

Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Edward Roberts Director March 6 52,500 No 287,732 shares 15.4%
Carol Yu CFO March 6 10,000 No 35,000 shares 22.2%
Dave Qi Director March 6 10,000 No 24,073 shares 29.3%
Xin Wang COO Feb 19 10,000 No 80,000 shares 11.1%
John Deng Director Feb 21 5,693 No 11,266 shares 33.6%
Click to enlarge

There have been 88,193 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

Month Insider selling / shares Insider buying / shares
March 2014 72,500 0
February 2014 15,693 0
January 2014 0 0
December 2013 13,682 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 101,875 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

Sohu reported the full-year 2013 financial results on February 10 with the following highlights:

Revenue $1.4 billion
Net loss $15.3 million
Cash $1.3 billion
Debt $410.3 million
Click to enlarge

The five insiders sold their shares after these results.

Outlook

Sohu's first-quarter 2014 guidance is as follows:

Revenue $355-$367 million
Non-GAAP net loss $42-$46 million
Click to enlarge

Competition

Sohu's competitors include Sina Corporation (NASDAQ:SINA),
NetEase (NASDAQ:NTES), and Baidu (NASDAQ:BIDU). Here is a table comparing these companies.

Company SOHU SINA NTES BIDU
Market Cap: 3.05B 4.74B 9.18B 62.80B
Employees: 13,000 N/A N/A N/A
Qtrly Rev Growth (yoy): 0.29 0.42 0.07 0.50
Revenue: 1.40B 665.11M 1.47B 5.09B
Gross Margin: 0.66 0.59 0.73 0.61
EBITDA: 314.17M 52.26M 719.43M 2.03B
Operating Margin: 0.13 0.03 0.47 0.35
Net Income: -15.30M 45.13M 708.74M 1.68B
EPS: -0.47 0.66 5.42 4.77
P/E: N/A 109.71 13.20 3.92
PEG (5 yr expected): -1.92 1.81 0.96 1.60
P/S: 2.20 7.24 6.35 12.52
Short Float: 9.12% 7.40% 2.70% 1.12%
Click to enlarge

Sohu has the highest short float among these four companies.

Conclusion

There have been five different insiders selling Sohu, and there have not been any insiders buying Sohu during the last 30 days. All five of these insiders decreased their holdings by more than 10%. Sohu has an insider ownership of 2.40%.

There are eight analyst buy ratings, 11 neutral ratings, and one sell rating with an average price target of $75.73. Before going short Sohu, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are bearish analyst price targets, negative earnings, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.