Cell Therapeutics: 5 Different Insiders Have Sold Shares This Month

Mar.24.14 | About: CTI BioPharma (CTIC)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Louis Bianco EVP March 21 125,000 No 822,897 shares 13.2%
James Bianco CEO March 20-21 395,000 No 2,402,794 shares 14.1%
Matthew Plunkett EVP March 21 170,000 No 620,904 shares 21.5%
Richard Love Director March 7 40,000 No 509,265 shares 7.3%
Fred Telling Director March 7 72,095 No 401,170 shares 15.2%
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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.

Month Insider selling / shares Insider buying / shares
March 2014 802,095 0
February 2014 0 0
January 2014 0 0
December 2013 6,000 0
November 2013 0 0
October 2013 0 0
September 2013 130,551 0
August 2013 240,925 0
July 2013 25,688 0
June 2013 36,053 0
May 2013 224,510 0
April 2013 0 0
March 2013 346,712 0
February 2013 0 0
January 2013 0 0
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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
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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.

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(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.

Company CTIC BMY INCY CELG
Market Cap: 536.52M 85.91B 9.83B 58.63B
Employees: 111 28,000 481 5,100
Qtrly Rev Growth (yoy): N/A 0.06 -0.15 0.21
Revenue: 34.68M 16.38B 354.95M 6.49B
Gross Margin: 1.00 0.70 0.26 0.85
EBITDA: -39.80M 4.22B 11.40M 2.35B
Operating Margin: -1.19 0.18 -0.05 0.30
Net Income: -49.64M 2.56B -83.15M 1.45B
EPS: -0.44 1.54 -0.56 3.37
P/E: N/A 33.81 N/A 42.85
PEG (5 yr expected): N/A 2.11 -1.12 0.81
P/S: 15.72 5.42 29.75 9.38
Short Float: 7.15% 1.56% 4.21% 1.13%
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Cell Therapeutics has the highest short float among these four companies.

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

Company Insider buying / shares Insider selling / shares
BMY 0 496,332
INCY 0 1,900,306
CELG 0 60,535
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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.

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.