SanDisk Corporation (NASDAQ:SNDK) designs, develops, manufactures, and markets flash storage card products that are used in various consumer electronics products.
Insider selling during the last 30 days
Here is a table of SanDisk's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Yehoshua Nir||SVP||April 24||780||No||3,762 shares||17.2%|
|Donald Robertson||CAO||April 23||1,380||No||4,345 shares||24.1%|
|Judy Bruner||CFO||April 21||39,300||Yes||45,875 shares + 39,600 options||31.5%|
|Sanjay Mehrotra||CEO||April 3-4||57,875||Yes||48,807 shares + 100 options||54.2%|
There have been 99,335 shares sold by insiders during the last 30 days. Judy Bruner and Sanjay Mehrotra 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 SanDisk's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,783,265 shares sold, and there have been zero shares purchased by insiders since January 2013.
SanDisk reported the first-quarter financial results on April 16 with the following highlights:
|GAAP net income||$268.9 million|
Three of these four insiders sold their shares after these results.
SanDisk's guidance is as follows:
|Revenue (GAAP)||$1,550-$1,625 million||$6.4-$6.8 billion|
|Gross margin (GAAP)||45%-47%||45%-47%|
|Qtrly Rev Growth (yoy):||0.13||0.06||0.02||0.98|
|PEG (5 yr expected):||1.13||N/A||1.85||0.84|
SanDisk 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|
Intel and Micron have also seen intensive insider selling during the last 30 days.
There have been four different insiders selling SanDisk, and there have not been any insiders buying SanDisk during the last 30 days. All four of these insiders decreased their holdings by more than 10%. SanDisk has an insider ownership of 0.24%.
SanDisk has a $62 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $62 price target. I would place a stop loss at $86, which is the all-time high. The four main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, relatively high P/E ratio, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in SNDK over 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.