GT Advanced Technologies: 3 Different Insiders Have Sold Shares During The Last 30 Days

May. 4.14 | About: GT Advanced (GTATQ)

Summary

Three insiders sold GT Advanced Technologies' stock within one month.

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

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

GT Advanced Technologies (GTAT) provides materials and equipment for the solar, light emitting diode, and electronics industries worldwide.

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Insider selling during the last 30 days

Here is a table of GT Advanced Technologies' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Hoil Kim VP May 1 25,000 Yes 44,991 shares + 27,789 options 25.6%
Thomas Gutierrez CEO May 1 117,730 Yes 168,899 shares + 274,837 options 21.0%
Thomas Wroe Director April 14 5,250 Yes 7,864 shares 40.0%
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There have been 147,980 shares sold by insiders during the last 30 days. All these shares were sold 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 GT Advanced Technologies' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 142,730 0
April 2014 105,437 0
March 2014 384,385 0
February 2014 819,162 0
January 2014 0 0
December 2013 143,769 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 1,595,483 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

GT Advanced Technologies reported the full-year 2013 financial results on February 24 with the following highlights:

Revenue $299.0 million
Net loss $86.6 million
Cash $498.2 million
Debt $283.9 million
Backlog $602.2 million
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The three insiders sold their shares after these results.

Outlook

GT Advanced Technologies' 2014 guidance is as follows:

Revenue $600-$800 million
CapEx $500-$600 million
Non-GAAP EPS $0.02-$0.18
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(Source: Earnings presentation)

GT Advanced Technologies' first-quarter guidance is as follows:

Revenue $20-$30 million
Non-GAAP EPS -$0.20 to -$0.25
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Competition

GT Advanced Technologies' competitors include Rubicon Technology (NASDAQ:RBCN) and Kyocera Corp. (NYSE:KYO). Here is a table comparing these companies.

Company GTAT RBCN KYO
Market Cap: 2.29B 219.26M 16.90B
Employees: 541 292 N/A
Qtrly Rev Growth (yoy): -0.68 0.72 0.06
Revenue: 298.97M 47.47M 14.15B
Gross Margin: 0.32 -0.55 0.26
EBITDA: -48.13M -25.91M 1.92B
Operating Margin: -0.26 -0.82 0.08
Net Income: -82.80M -37.87M 867.59M
EPS: -0.68 -1.63 2.37
P/E: N/A N/A 19.48
PEG (5 yr expected): 3.59 -0.53 0.78
P/S: 7.80 6.32 0.95
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GT Advanced Technologies has the highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
RBCN 0 2,500,000
KYO N/A N/A
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Only GT Advanced Technologies has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling GT Advanced Technologies, and there have not been any insiders buying GT Advanced Technologies during the last 30 days. All three of these insiders decreased their holdings by more than 10%. GT Advanced Technologies has an insider ownership of 7.84%.

GT Advanced Technologies has a $11 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $11 price target. I would place a stop loss at $19.50, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, negative earnings, 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 GTAT 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.