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Summary

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

Cell Therapeutics (NASDAQ:CTIC) engages in the acquisition, development, and commercialization of treatments for cancer.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Louis BiancoEVPMarch 21125,000No822,897 shares13.2%
James BiancoCEOMarch 20-21395,000No2,402,794 shares14.1%
Matthew PlunkettEVPMarch 21170,000No620,904 shares21.5%
Richard LoveDirectorMarch 740,000No509,265 shares7.3%
Fred TellingDirectorMarch 772,095No401,170 shares15.2%

There have been 802,095 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

MonthInsider selling / sharesInsider buying / shares
March 2014802,0950
February 201400
January 201400
December 20136,0000
November 201300
October 201300
September 2013130,5510
August 2013240,9250
July 201325,6880
June 201336,0530
May 2013224,5100
April 201300
March 2013346,7120
February 201300
January 201300

There have been 1,812,534 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

Cell Therapeutics reported the full-year 2013 financial results on March 4 with the following highlights:

Revenue$34.7 million
Net product sales$2.3 million
Net loss$49.6 million
Cash$71.6 million
Debt$13.3 million

The five insiders sold their shares after these results.

Outlook

For 2014, Cell Therapeutics expects loss from operations to be approximately $45 million to $50 million.

Pipeline and upcoming milestones

Cell Therapeutics has one approved product and several product candidates in the pipeline.

(click to enlarge)

(Source: Investor presentation)

Cell Therapeutics anticipates reporting topline results for PERSIST-1 in the second half of 2014.

Competition

Cell Therapeutics' competitors include Bristol-Myers Squibb Company (NYSE:BMY) with paclitaxel, Incyte (NASDAQ:INCY) with Jakafi, and Celgene (NASDAQ:CELG) with Vidaza. Here is a table comparing these companies.

CompanyCTICBMYINCYCELG
Market Cap:536.52M85.91B9.83B58.63B
Employees:11128,0004815,100
Qtrly Rev Growth (yoy):N/A0.06-0.150.21
Revenue:34.68M16.38B354.95M6.49B
Gross Margin:1.000.700.260.85
EBITDA:-39.80M4.22B11.40M2.35B
Operating Margin:-1.190.18-0.050.30
Net Income:-49.64M2.56B-83.15M1.45B
EPS:-0.441.54-0.563.37
P/E:N/A33.81N/A42.85
PEG (5 yr expected):N/A2.11-1.120.81
P/S:15.725.4229.759.38
Short Float:7.15%1.56%4.21%1.13%

Cell Therapeutics has the highest short float among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
BMY0496,332
INCY01,900,306
CELG060,535

Bristol-Myers Squibb has also seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Cell Therapeutics, and there have not been any insiders buying Cell Therapeutics during the last 30 days. Four of these five insiders decreased their holdings by more than 10%. Cell Therapeutics has an insider ownership of 9.41%.

Before going short Cell Therapeutics, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Source: Cell Therapeutics: 5 Different Insiders Have Sold Shares This Month