Micron Technology (NASDAQ:MU) manufactures and markets semiconductor solutions worldwide.
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%|
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|
There have been 7,242,469 shares sold, and there have been zero shares purchased by insiders since January 2013.
Micron reported the fiscal 2014 second-quarter, which ended February 27, financial results on April 3 with the following highlights:
|GAAP net income||$731 million|
Nine of these 11 insiders sold their shares after these results.
(Source: Earnings presentation)
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.
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||0.98||0.13||0.06||0.14|
|PEG (5 yr expected):||0.85||1.12||N/A||N/A|
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|
SanDisk has also seen intensive insider selling during the last 30 days.
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.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.