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

| About: Signet Jewelers (SIG)

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.

Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Robert Trabucco US CFO April 3-10 9,713 No 22,664 shares 30.0%
Edward Hrabak US COO April 3 3,181 No 6,622 shares 32.4%
Sebastian Hobbs Director March 27 590 No 5,365 shares 9.9%
Mark Jenkins Secretary April 3 1,718 No 14,767 shares 10.4%
Mark Light US CEO April 3 1,923 No 50,807 shares 3.6%
Ronald Ristau CFO April 2 3,000 No 39,903 shares 7.0%
Michael Povall CAO, UK April 1 545 No 4,584 shares 10.6%

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.

Month Insider selling / shares Insider buying / shares
April 2014 20,080 0
March 2014 590 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 5,260 0
June 2013 0 0
May 2013 0 0
April 2013 171,772 0
March 2013 0 0
February 2013 0 0
January 2013 37,482 0

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 growth 3%-4%
EPS $1.14-$1.20

(Source: Earnings presentation)

Competition

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

Company SIG TIF
Market Cap: 8.14B 10.89B
Employees: 18,179 10,600
Qtrly Rev Growth (yoy): 0.03 0.05
Revenue: 4.21B 4.03B
Gross Margin: 0.38 0.58
EBITDA: 508.00M 974.55M
Operating Margin: 0.09 0.20
Net Income: 368.00M 181.37M
EPS: 4.56 1.41
P/E: 22.25 59.96
PEG (5 yr expected): 2.26 1.65
P/S: 1.97 2.76

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.

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.