Illumina: 9 Different Insiders Have Sold Shares This Month

| About: Illumina, Inc. (ILMN)

Summary

Nine insiders sold Illumina stock within one month.

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

Two of these nine insiders decreased their holdings by more than 10%.

Illumina (NASDAQ:ILMN) develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Jay Flatley CEO March 13-27 60,000 Yes 381,262 shares + 570,000 options 5.9%
Daniel Bradbury Director March 6-19 4,200 Yes 9,924 shares + 8,800 options 18.3%
Nicholas Naclerio SVP March 17 2,000 Yes 23,146 shares + 78,000 options 1.9%
Gerald Moeller Director March 17 10,000 Yes 14,620 shares + 18,000 options 23.5%
Marc Stapley CFO March 14 1,422 Yes 21,996 shares + 72,517 options 1.5%
David Walt Director March 10 9,400 No 970,048 shares 1.0%
Christian Henry CCO March 11 3,000 Yes 28,519 shares 9.5%
Michel Bouchard CAO March 11 2,168 Yes 25,049 shares 8.0%
Mostafa Ronaghi CTO March 6 10,000 Yes 28,604 shares + 120,000 options 6.3%
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There have been 102,190 shares sold by insiders during the last 30 days. Jay Flatley, Daniel Bradbury, Nicholas Naclerio, Gerald Moeller, Marc Stapley, Christian Henry, Michel Bouchard, and Mostafa Ronaghi sold shares pursuant to the 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 Illumina's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 102,190 0
February 2014 111,713 0
January 2014 104,038 0
December 2013 70,663 0
November 2013 66,875 0
October 2013 124,450 0
September 2013 146,164 0
August 2013 66,000 0
July 2013 357,134 0
June 2013 204,068 0
May 2013 179,196 0
April 2013 244,397 0
March 2013 26,601 0
February 2013 10,000 0
January 2013 100,500 0
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There have been 1,913,989 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

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

Revenue $1.4 billion
GAAP net income $125.3 million
Cash $1.2 billion
Debt $868.6 million
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The nine insiders sold their shares after these results.

Outlook

Illumina's 2014 guidance is as follows:

Revenue growth 15%-17%
Non-GAAP EPS $2.00-$2.06
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Competition

Illumina's competitors include Affymetrix (NASDAQ:AFFX), Thermo Fisher Scientific (NYSE:TMO), and Luminex (NASDAQ:LMNX). Here is a table comparing these companies.

Company ILMN AFFX TMO LMNX
Market Cap: 18.21B 482.00M 46.43B 748.83M
Employees: 3,000 1,100 50,000 731
Qtrly Rev Growth (yoy): 0.25 0.10 0.06 -0.01
Revenue: 1.42B 330.40M 13.09B 213.42M
Gross Margin: 0.68 0.55 0.42 0.68
EBITDA: 377.23M 26.44M 2.79B 25.66M
Operating Margin: 0.20 -0.02 0.14 0.05
Net Income: 125.31M -16.33M 1.28B 7.10M
EPS: 0.90 -0.23 3.48 0.17
P/E: 157.80 N/A 34.01 104.94
PEG (5-yr expected): 3.80 3.68 1.18 1.37
P/S: 12.90 1.51 3.52 3.57
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Illumina 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
AFFX 0 0
TMO 0 517,467
LMNX 0 0
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Thermo Fisher Scientific has also seen intensive insider selling during the last 30 days.

Financials

There have been nine different insiders selling Illumina, and there have not been any insiders buying Illumina during the last 30 days. Two of these nine insiders decreased their holdings by more than 10%. Illumina has an insider ownership of 1.30%.

Illumina has a $132 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $132 price target. I would place a stop loss at $183, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in ILMN 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.