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Summary

  • Seven insiders sold Google's stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 7 insiders decreased their holdings by more than 10%.

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) builds products and provides services to organize the information.
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Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
John HennessyDirectorApr 21-May 12,000Yes6,092 shares24.7%
Eric SchmidtExecutive ChairmanApril 2492,630Yes9,499,786 shares1.0%
Shirley TilghmanDirectorApril 212,000No7,624 shares20.8%
Lawrence PageCEOApril 14-17166,668Yes47,007,160 shares0.4%
John DoerrDirectorApril 157,872Yes2,233,330 shares0.4%
David DrummondSVPApril 14290Yes116,670 shares + 314,050 options0.1%
Patrick PichetteCFOApril 7-143,176Yes102,836 shares + 176,066 options1.1%

There have been 274,636 shares sold by insiders during the last 30 days. John Hennessy, Eric Schmidt, Lawrence Page, John Doerr, David Drummond, and Patrick Pichette 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 Google's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 20141,0000
April 2014357,8030
March 2014238,4230
February 2014248,1630
January 2014217,2960
December 2013227,7650
November 2013226,8940
October 2013244,8470
September 2013436,6280
August 2013435,5980
July 2013435,2800
June 2013436,5060
May 2013516,4190
April 2013437,9270
March 2013437,6590
February 2013484,3280
January 2013398,0070

There have been 5,780,543 shares sold, and there have been zero shares purchased by insiders since January 2013. On April 2, Google issued a class C stock dividend.

Financials

Google reported the first-quarter financial results on April 16 with the following highlights:

Revenue$15.4 billion
Net income$3.5 billion
Cash$59.4 billion
Debt$6.2 billion

Four of these seven insiders sold their shares after these results.

(click to enlarge)Google's revenue growth has been slowing down since 2012.

Competition

Google's competitors include Facebook (NASDAQ:FB), and Yahoo! (NASDAQ:YHOO). Here is a table comparing these companies.

CompanyGOOGFBYHOO
Market Cap:358.39B155.63B37.66B
Employees:49,8296,33712,200
Qtrly Rev Growth (yoy):0.190.72-0.01
Revenue:62.29B8.92B4.67B
Gross Margin:0.570.800.71
EBITDA:18.58B4.66B887.32M
Operating Margin:0.230.410.09
Net Income:12.34B1.91B1.29B
EPS:19.090.771.20
P/E:27.8479.1130.45
PEG (5 yr expected):N/A1.232.72
P/S:5.7017.067.94

Google has the lowest gross margin among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
FB04,663,613
YHOO0350,103

Only Google has seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Google, and there have not been any insiders buying Google during the last 30 days. Two of these seven insiders decreased their holdings by more than 10%.

Google has a $465 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $465 price target. I would place a stop loss at $615, which is the all-time high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Source: Google: 7 Different Insiders Have Sold Shares During The Last 30 Days