Pfizer: 4 Different Insiders Have Sold Shares This Month

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 |  About: Pfizer Inc. (PFE)
by: Markus Aarnio

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
John Young Group President March 17 9,000 No 105,608 shares 7.9%
Loretta Cangialosi SVP March 3 102,943 No 171,756 shares 37.5%
Mikael Dolsten President, R&D March 4 35,789 No 345,839 shares 9.4%
Sally Susman EVP March 4 67,585 No 174,032 shares 28.0%
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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.

Month Insider selling / shares Insider buying / shares
March 2014 215,317 0
February 2014 0 0
January 2014 160,000 0
December 2013 0 0
November 2013 145,500 0
October 2013 338,000 0
September 2013 99,361 0
August 2013 0 0
July 2013 111,188 0
June 2013 0 0
May 2013 239,900 0
April 2013 0 0
March 2013 307,667 0
February 2013 0 0
January 2013 26,752 0
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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
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(Source: Earnings presentation)

Upcoming milestones

Pfizer's upcoming milestones include the following:

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(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.

Company PFE MRK NVS SNY
Market Cap: 201.19B 158.35B 196.25B 133.79B
Employees: 77,700 77,300 135,696 112,128
Qtrly Rev Growth (yoy): -0.02 -0.04 0.02 -0.01
Revenue: 51.58B 44.03B 58.83B 43.12B
Gross Margin: 0.82 0.64 0.67 0.67
EBITDA: 23.12B 15.67B 16.20B 13.17B
Operating Margin: 0.33 0.21 0.19 0.19
Net Income: 22.00B 4.40B 9.18B 4.81B
EPS: 3.19 1.47 3.70 1.80
P/E: 9.90 36.64 21.84 28.09
PEG (5 yr expected): 6.81 9.13 2.90 1.78
P/S: 3.98 3.65 3.37 3.11
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Pfizer has the highest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
MRK 0 179,380
NVS N/A N/A
SNY N/A N/A
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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.

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.