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

May. 2.14 | About: Alphabet Inc. (GOOG)

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.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
John Hennessy Director Apr 21-May 1 2,000 Yes 6,092 shares 24.7%
Eric Schmidt Executive Chairman April 24 92,630 Yes 9,499,786 shares 1.0%
Shirley Tilghman Director April 21 2,000 No 7,624 shares 20.8%
Lawrence Page CEO April 14-17 166,668 Yes 47,007,160 shares 0.4%
John Doerr Director April 15 7,872 Yes 2,233,330 shares 0.4%
David Drummond SVP April 14 290 Yes 116,670 shares + 314,050 options 0.1%
Patrick Pichette CFO April 7-14 3,176 Yes 102,836 shares + 176,066 options 1.1%
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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.

Month Insider selling / shares Insider buying / shares
May 2014 1,000 0
April 2014 357,803 0
March 2014 238,423 0
February 2014 248,163 0
January 2014 217,296 0
December 2013 227,765 0
November 2013 226,894 0
October 2013 244,847 0
September 2013 436,628 0
August 2013 435,598 0
July 2013 435,280 0
June 2013 436,506 0
May 2013 516,419 0
April 2013 437,927 0
March 2013 437,659 0
February 2013 484,328 0
January 2013 398,007 0
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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
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Four of these seven insiders sold their shares after these results.

Click to enlargeGoogle'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.

Company GOOG FB YHOO
Market Cap: 358.39B 155.63B 37.66B
Employees: 49,829 6,337 12,200
Qtrly Rev Growth (yoy): 0.19 0.72 -0.01
Revenue: 62.29B 8.92B 4.67B
Gross Margin: 0.57 0.80 0.71
EBITDA: 18.58B 4.66B 887.32M
Operating Margin: 0.23 0.41 0.09
Net Income: 12.34B 1.91B 1.29B
EPS: 19.09 0.77 1.20
P/E: 27.84 79.11 30.45
PEG (5 yr expected): N/A 1.23 2.72
P/S: 5.70 17.06 7.94
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Google has the lowest gross margin among these three companies.

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

Company Insider buying / shares Insider selling / shares
FB 0 4,663,613
YHOO 0 350,103
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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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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in GOOG 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.