Williams-Sonoma: 4 Different Insiders Have Sold Shares During The Last 30 Days

Apr.14.14 | About: Williams-Sonoma Inc. (WSM)

Summary

Four insiders sold Williams-Sonoma stock within one month.

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

Three of these four insiders decreased their holdings by more than 10%.

Williams-Sonoma (NYSE:WSM) operates as a multi-channel specialty retailer of home products.

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Insider selling during the last 30 days

Here is a table of Williams-Sonoma's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Janet Hayes President, WS Brand Mar 20-Apr 9 14,919 No 20,554 shares 42.1%
Sandra Stangl President, Pottery Barn Brands March 25 14,156 No 24,472 shares 36.6%
Laura Alber CEO March 18 27,583 No 146,645 shares + 50,000 options 12.3%
Pat Connolly CMO March 19 77,205 No 782,710 shares + 100,000 options 8.0%
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There have been 133,863 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Williams-Sonoma's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 9,200 0
March 2014 124,663 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 40,000 0
October 2013 5,445 0
September 2013 24,580 0
August 2013 0 0
July 2013 0 0
June 2013 84,773 0
May 2013 0 0
April 2013 0 0
March 2013 100,239 0
February 2013 0 0
January 2013 0 0
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There have been 388,900 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

Williams-Sonoma reported the fiscal 2013 full-year, which ended February 2, financial results on March 12 with the following highlights:

Revenue $4.4 billion
Net income $278.9 million
Cash $330.1 million
Debt $3.8 million
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The four insiders sold their shares after these results.

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Williams-Sonoma's revenue growth has been slowing down recently.

Outlook

Williams-Sonoma's guidance is as follows:

Q1/2014 FY2014
Net revenue $920-$940 million $4,630-$4,710 million
Comparable brand revenue growth 4%-6% 5%-7%
EPS $0.41-$0.44 $3.05-$3.15
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Competition

Williams-Sonoma's competitors include Restoration Hardware Holdings (NYSE:RH), Bed Bath & Beyond (NASDAQ:BBBY), and Pier 1 Imports (NYSE:PIR). Here is a table comparing these companies.

Company WSM RH BBBY PIR
Market Cap: 5.79B 2.60B 13.10B 1.80B
Employees: 7,800 2,600 57,000 3,700
Qtrly Rev Growth (yoy): 0.04 0.19 -0.06 -0.07
Revenue: 4.39B 1.55B 11.50B 1.77B
Gross Margin: 0.39 0.36 0.40 0.44
EBITDA: 605.39M 147.04M 1.83B 221.30M
Operating Margin: 0.10 0.08 0.14 0.06
Net Income: 278.90M 18.19M 1.02B 107.53M
EPS: 2.82 0.45 4.79 1.01
P/E: 21.81 148.60 13.30 17.60
PEG (5 yr expected): 1.51 1.11 1.33 1.15
P/S: 1.35 1.65 1.14 1.04
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Williams-Sonoma has the highest PEG ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
RH 0 577,900
BBBY 0 0
PIR 0 52,500
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Restoration Hardware Holdings has also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Williams-Sonoma, and there have not been any insiders buying Williams-Sonoma during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Williams-Sonoma has an insider ownership of 6.99%.

Before going short Williams-Sonoma, 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.