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Summary

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

Pfizer (NYSE:PFE) discovers, develops, manufactures, and sells healthcare products worldwide.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
John YoungGroup PresidentMarch 179,000No105,608 shares7.9%
Loretta CangialosiSVPMarch 3102,943No171,756 shares37.5%
Mikael DolstenPresident, R&DMarch 435,789No345,839 shares9.4%
Sally SusmanEVPMarch 467,585No174,032 shares28.0%

There have been 215,317 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

MonthInsider selling / sharesInsider buying / shares
March 2014215,3170
February 201400
January 2014160,0000
December 201300
November 2013145,5000
October 2013338,0000
September 201399,3610
August 201300
July 2013111,1880
June 201300
May 2013239,9000
April 201300
March 2013307,6670
February 201300
January 201326,7520

There have been 1,643,685 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Pfizer reported the full-year 2013 financial results on January 28 with the following highlights:

Revenue$51.6 billion
Net income$22.0 billion
Cash$32.4 billion
Debt$36.5 billion

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(Source: Earnings presentation)

Outlook

Pfizer's 2014 guidance is as follows:

Adjusted Revenues$49.2-$51.2 billion
Adjusted EPS$2.20-$2.30

(click to enlarge)

(Source: Earnings presentation)

Upcoming milestones

Pfizer's upcoming milestones include the following:

(click to enlarge)

(Source: Earnings presentation)

Competition

Pfizer's competitors include Merck (NYSE:MRK), Novartis (NYSE:NVS), and Sanofi (NYSE:SNY). Here is a table comparing these companies.

CompanyPFEMRKNVSSNY
Market Cap:201.19B158.35B196.25B133.79B
Employees:77,70077,300135,696112,128
Qtrly Rev Growth (yoy):-0.02-0.040.02-0.01
Revenue:51.58B44.03B58.83B43.12B
Gross Margin:0.820.640.670.67
EBITDA:23.12B15.67B16.20B13.17B
Operating Margin:0.330.210.190.19
Net Income:22.00B4.40B9.18B4.81B
EPS:3.191.473.701.80
P/E:9.9036.6421.8428.09
PEG (5 yr expected):6.819.132.901.78
P/S:3.983.653.373.11

Pfizer has the highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
MRK0179,380
NVSN/AN/A
SNYN/AN/A

Only Pfizer has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Pfizer, and there have not been any insiders buying Pfizer during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Pfizer has an insider ownership of 0.10%.

Before going short Pfizer, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, negative revenue growth, and the intensive insider-selling activity.

Source: Pfizer: 4 Different Insiders Have Sold Shares This Month