Schlumberger: 3 Different Insiders Have Sold Shares This Month

| About: Schlumberger Limited (SLB)

Summary

3 insiders sold Schlumberger stock within one month.

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

All three of these insiders decreased their holdings by more than 10%.

Schlumberger Limited (NYSE:SLB) supplies technology, integrated project management, and information solutions to oil and gas exploration and production industries worldwide.

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Insider selling during the last 30 days

Here is a table of Schlumberger's insider activity during the last 30 days by insiders.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Alexander Juden General Counsel April 21-23 55,601 No 25,028 shares + 8,941 options 62.1%
Paal Kibsgaard CEO April 21-23 143,800 No 90,967 shares + 439,449 options 21.3%
Howard Guild CAO April 21 30,000 No 10,268 shares 74.5%
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There have been 229,401 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Schlumberger's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 229,401 0
March 2014 0 0
February 2014 278,800 0
January 2014 25,504 0
December 2013 0 0
November 2013 23,256 0
October 2013 68,499 0
September 2013 0 0
August 2013 4,980 0
July 2013 0 0
June 2013 0 0
May 2013 66,681 0
April 2013 0 0
March 2013 0 0
February 2013 52,981 0
January 2013 27,116 0
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There have been 777,218 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of February 2014 has seen the most insider selling.

Financials

Schlumberger reported the first-quarter financial results on April 17 with the following highlights:

Revenue $11.2 billion
Net income $1.6 billion
Cash $7.1 billion
Debt $12.5 billion
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The three insiders sold their shares after these results.

Outlook

Schlumberger's 2014 guidance is as follows:

EPS Double digit growth
CapEx $3.8 billion
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Competition

Schlumberger's competitors include Baker Hughes (NYSE:BHI), Halliburton (NYSE:HAL), and Weatherford International (NYSE:WFT). Here is a table comparing these companies.

Company SLB BHI HAL WFT
Market Cap: 133.12B 30.73B 54.12B 14.29B
Employees: 123,000 59,000 77,000 67,000
Qtrly Rev Growth (yoy): 0.06 0.10 0.04 -0.08
Revenue: 45.94B 22.86B 29.40B 15.26B
Gross Margin: 0.22 0.17 0.15 0.19
EBITDA: 12.36B 3.77B 6.04B 2.05B
Operating Margin: 0.19 0.09 0.14 0.04
Net Income: 7.19B 1.16B 2.11B -345.00M
EPS: 5.32 2.61 2.35 -0.45
P/E: 19.16 26.81 27.09 N/A
PEG (5 yr expected): 0.96 0.73 0.71 0.43
P/S: 2.91 1.35 1.87 0.94
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Schlumberger 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
BHI 0 91,216
HAL 0 694,881
WFT 0 5,000
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Baker Hughes and Halliburton have also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Schlumberger, and there have not been any insiders buying Schlumberger during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Schlumberger has an insider ownership of 0.21%.

Before going short Schlumberger, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and 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.