Micron: 11 Different Insiders Have Sold Shares This Month

Apr.25.14 | About: Micron Technology (MU)

Summary

11 insiders sold Micron stock within one month.

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

3 of these 11 insiders decreased their holdings by more than 10%.

Micron Technology (NASDAQ:MU) manufactures and markets semiconductor solutions worldwide.

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Insider selling during the last 30 days

Here is a table of Micron's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Ronald Foster CFO April 9-23 40,000 No 663,842 shares + 173,000 options 4.6%
Mark Adams President April 9-23 248,249 No 474,500 shares 34.3%
Brian Shields VP April 22 3,750 No 248,724 shares 1.5%
Michael Sadler VP April 22 133,000 No 271,064 shares + 170,750 options 23.1%
Michael Rayfield VP April 22 15,000 No 215,851 shares 6.5%
Scott Deboer VP April 16-21 56,500 No 206,087 shares + 94,500 options 15.8%
Mark Durcan CEO April 15 200,000 Yes 2,234,571 shares 8.2%
Patrick Byrne Director April 8 10,000 No 101,053 shares 9.0%
Lawrence Mondry Director April 7 10,000 Yes 185,834 shares 5.1%
Robert Bailey Director April 1 2,000 Yes 131,751 shares 1.5%
Mercedes Johnson Director April 1 8,000 Yes 100,242 shares 7.4%
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There have been 726,499 shares sold by insiders during the last 30 days. Mark Durcan, Lawrence Mondry, Robert Bailey, and Mercedes Johnson sold shares pursuant to a 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 Micron's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 726,499 0
March 2014 32,000 0
February 2014 125,200 0
January 2014 963,492 0
December 2013 0 0
November 2013 1,569,296 0
October 2013 290,830 0
September 2013 191,850 0
August 2013 641,425 0
July 2013 744,588 0
June 2013 565,846 0
May 2013 313,750 0
April 2013 1,015,693 0
March 2013 4,000 0
February 2013 4,000 0
January 2013 54,000 0
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There have been 7,242,469 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Micron reported the fiscal 2014 second-quarter, which ended February 27, financial results on April 3 with the following highlights:

Revenue $4.1 billion
GAAP net income $731 million
Cash $4.5 billion
Debt $6.5 billion
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Nine of these 11 insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

Micron expects fiscal 2014 third-quarter DRAM production bit growth to be down low single digits, quarter-to-date ASP to be down low single digits, and cost per bit to be down low single digits.

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(Source: Earnings presentation)

Competition

Micron's competitors include SanDisk (SNDK), Samsung Electronics (OTC:SSNLF), and Toshiba (OTCPK:TOSBF). Here is a table comparing these companies.

Company MU SNDK SSNLF TOSBF
Market Cap: 28.00B 19.24B 170.19B 16.85B
Employees: 30,900 5,459 N/A 206,000
Qtrly Rev Growth (yoy): 0.98 0.13 0.06 0.14
Revenue: 13.31B 6.34B 219.54B 81.58B
Gross Margin: 0.30 0.49 N/A N/A
EBITDA: 4.03B 2.30B 50.80B 6.63B
Operating Margin: 0.16 0.29 0.16 0.05
Net Income: 2.84B 1.15B 24.86B 783.86M
EPS: 2.48 4.81 189.89 0.19
P/E: 10.57 17.70 6.85 21.51
PEG (5 yr expected): 0.85 1.12 N/A N/A
P/S: 2.11 3.01 0.78 0.21
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Micron has the second-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
SNDK 0 521,955
SSNLF N/A N/A
TOSBF N/A N/A
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SanDisk has also seen intensive insider selling during the last 30 days.

Conclusion

There have been 11 different insiders selling Micron, and there have not been any insiders buying Micron during the last 30 days. Three of these 11 insiders decreased their holdings by more than 10%. Micron has an insider ownership of 0.64%.

Before going short Micron, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a weak guidance, 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.

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