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.
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%|
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|
There have been 1,913,989 shares sold, and there have been zero shares purchased by insiders since January 2013.
Illumina reported the full-year 2013 financial results on January 28 with the following highlights:
|GAAP net income||$125.3 million|
The nine insiders sold their shares after these results.
Illumina's 2014 guidance is as follows:
|Qtrly Rev Growth (yoy):||0.25||0.10||0.06||-0.01|
|PEG (5-yr expected):||3.80||3.68||1.18||1.37|
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|
Thermo Fisher Scientific has also seen intensive insider selling during the last 30 days.
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.
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.