Mylan: 7 Different Insiders Have Sold Shares This Month

Mar.25.14 | About: Mylan Inc (MYL)

Summary

Seven insiders sold Mylan stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

Five of these seven insiders decreased their holdings by more than 10%.

Mylan (NASDAQ:MYL) develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide.

Click to enlarge

Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Neil Dimick Director March 20 5,813 Yes 32,136 shares 15.3%
C.B. Todd Director March 14 10,000 No 229,636 shares 4.2%
Joseph Maroon Director March 10 10,000 No 33,436 shares 23.0%
Harry Korman COO March 6 31,970 No 143,455 shares + 36,245 options 15.1%
Daniel Rizzo CAO March 3 8,003 No 82,678 shares + 6,585 options 8.2%
Anthony Mauro President, North America March 3 20,000 No 31,047 shares + 14,698 options 30.4%
Douglas Leech Director March 3 10,000 No 36,271 shares 21.6%
Click to enlarge

There have been 95,786 shares sold by insiders during the last 30 days. Neil Dimick sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

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

Month Insider selling / shares Insider buying / shares
March 2014 95,786 0
February 2014 0 0
January 2014 5,813 0
December 2013 596,378 5,000
November 2013 0 0
October 2013 0 0
September 2013 160,000 0
August 2013 0 0
July 2013 0 0
June 2013 19,994 0
May 2013 0 0
April 2013 0 0
March 2013 96,426 0
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 974,397 shares sold, and there have been 5,000 shares purchased by insiders since January 2013.

Financials

Mylan reported the full-year 2013 financial results on February 27 with the following highlights:

Revenue $6.9 billion
Adjusted net income $1.1 billion
Cash $291.3 million
Debt $8.0 billion
Click to enlarge

Click to enlarge

(Source: Earnings presentation)

The seven insiders sold their shares after these results.

Outlook

Mylan's 2014 guidance is as follows:

Revenue $7.8-$8.2 billion
Net income $1,265-$1,460 million
EPS $3.25-$3.60
Click to enlarge

Click to enlarge

(Source: Earnings presentation)

Pipeline and upcoming milestones

Mylan has the following clinical trials ongoing.

Click to enlarge

(Source: Earnings presentation)

Competition

Mylan's competitors include Actavis (ACT), and Teva Pharmaceutical Industries (NYSE:TEVA). Here is a table comparing these companies.

Company MYL ACT TEVA
Market Cap: 18.58B 35.94B 41.66B
Employees: 20,000 N/A 44,945
Qtrly Rev Growth (yoy): 0.05 0.59 0.03
Revenue: 6.91B 8.68B 20.31B
Gross Margin: 0.45 0.50 0.53
EBITDA: 1.87B 2.03B 5.61B
Operating Margin: 0.20 0.12 0.20
Net Income: 623.71M -750.40M 1.27B
EPS: 1.58 -5.27 1.49
P/E: 31.63 N/A 32.97
PEG (5 yr expected): 1.42 0.88 11.77
P/S: 2.81 4.20 2.06
Short Float: 8.12% 4.34% 2.03%
Click to enlarge

Mylan has the highest short float among these three companies.

Here is a table of these competitors' insider activities during the last six months.

Company Insider buying / shares Insider selling / shares
ACT 0 406,770
TEVA N/A N/A
Click to enlarge

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

Conclusion

There have been seven different insiders selling Mylan, and there have not been any insiders buying Mylan during the last 30 days. Five of these seven insiders decreased their holdings by more than 10%. Mylan has an insider ownership of 0.60%.

Before going short Mylan, 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.