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Summary

  • Seven insiders sold Signet stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Four of these seven insiders decreased their holdings by more than 10%.

Signet Jewelers Limited (NYSE:SIG) is engaged in the retail sale of jewelry and watches in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Signet Jewelers' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Robert TrabuccoUS CFOApril 3-109,713No22,664 shares30.0%
Edward HrabakUS COOApril 33,181No6,622 shares32.4%
Sebastian HobbsDirectorMarch 27590No5,365 shares9.9%
Mark JenkinsSecretaryApril 31,718No14,767 shares10.4%
Mark LightUS CEOApril 31,923No50,807 shares3.6%
Ronald RistauCFOApril 23,000No39,903 shares7.0%
Michael PovallCAO, UKApril 1545No4,584 shares10.6%

There have been 20,670 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Signet Jewelers' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 201420,0800
March 20145900
February 201400
January 201400
December 201300
November 201300
October 201300
September 201300
August 201300
July 20135,2600
June 201300
May 201300
April 2013171,7720
March 201300
February 201300
January 201337,4820

There have been 235,184 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Signet Jewelers reported the fiscal 2014 full-year, which ended February 1, financial results on March 27 with the following highlights:

Revenue$4.2 billion
Net income$368.0 million
Cash$247.6 million
Debt$19.3 million

The seven insiders sold their shares after these results.

Outlook

Signet Jewelers' fiscal 2015 first-quarter guidance is as follows:

Same store sales growth3%-4%
EPS$1.14-$1.20

(click to enlarge)

(Source: Earnings presentation)

Competition

Signet Jewelers' competitors include Tiffany & Co. (NYSE:TIF). Here is a table comparing these two companies.

CompanySIGTIF
Market Cap:8.14B10.89B
Employees:18,17910,600
Qtrly Rev Growth (yoy):0.030.05
Revenue:4.21B4.03B
Gross Margin:0.380.58
EBITDA:508.00M974.55M
Operating Margin:0.090.20
Net Income:368.00M181.37M
EPS:4.561.41
P/E:22.2559.96
PEG (5 yr expected):2.261.65
P/S:1.972.76

Signet Jewelers has a higher PEG ratio than Tiffany. In Tiffany, there have been 503,210 shares sold and there have been zero shares purchased by insiders this year. Only Signet Jewelers has seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Signet Jewelers, and there have not been any insiders buying Signet Jewelers during the last 30 days. Four of these seven insiders decreased their holdings by more than 10%. Signet Jewelers has an insider ownership of 0.87%.

Before going short Signet Jewelers, 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.

Source: Signet Jewelers: 7 Different Insiders Have Sold Shares During The Last 30 Days