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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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Edward RobertsDirectorMarch 652,500No287,732 shares15.4%
Carol YuCFOMarch 610,000No35,000 shares22.2%
Dave QiDirectorMarch 610,000No24,073 shares29.3%
Xin WangCOOFeb 1910,000No80,000 shares11.1%
John DengDirectorFeb 215,693No11,266 shares33.6%

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.

MonthInsider selling / sharesInsider buying / shares
March 201472,5000
February 201415,6930
January 201400
December 201313,6820
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

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

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

Competition

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

CompanySOHUSINANTESBIDU
Market Cap:3.05B4.74B9.18B62.80B
Employees:13,000N/AN/AN/A
Qtrly Rev Growth (yoy):0.290.420.070.50
Revenue:1.40B665.11M1.47B5.09B
Gross Margin:0.660.590.730.61
EBITDA:314.17M52.26M719.43M2.03B
Operating Margin:0.130.030.470.35
Net Income:-15.30M45.13M708.74M1.68B
EPS:-0.470.665.424.77
P/E:N/A109.7113.203.92
PEG (5 yr expected):-1.921.810.961.60
P/S:2.207.246.3512.52
Short Float:9.12%7.40%2.70%1.12%

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.

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