Adobe Systems Incorporated (NASDAQ:ADBE) operates as a diversified software company worldwide.
Insider selling during the last 30 days
Here is a table of Adobe's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|John Warnock||Co-Chairman||March 24||50,000||No||761,211 shares||6.2%|
|James Daley||Director||March 20||5,000||No||15,086 shares + 10,000 options||16.6%|
|Mark Garrett||CFO||March 4||15,000||Yes||67,502 shares||18.2%|
|Shantanu Narayen||CEO||March 3||50,000||Yes||258,737 shares + 388,300 options||7.2%|
There have been 120,000 shares sold by insiders during the last 30 days. Mark Garrett and Shantanu Narayen 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 Adobe's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 9,594,658 shares sold, and there have been 5,000 shares purchased by insiders since January 2013.
Adobe reported the fiscal 2014 first-quarter, which ended February 28, financial results on March 18 with the following highlights:
|Net income||$47.0 million|
Two of these four insiders sold their shares after these results.
Adobe's revenues peaked in 2012.
Adobe's guidance is as follows:
|Revenue||$1-$1.05 billion||$4.1 billion|
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||-0.01||0.06||0.14||-0.03|
|PEG (5 yr expected):||4.77||0.59||1.96||4.01|
Adobe 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|
Autodesk has also seen intensive insider selling during the last 30 days.
There have been four different insiders selling Adobe, and there have not been any insiders buying Adobe during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Adobe has an insider ownership of 0.10%.
Adobe has a $57 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $57 price target. I would place a stop loss at $71, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, negative revenue growth, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in ADBE, ADSK over 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.