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Summary

  • Four insiders sold Coca-Cola Enterprises' stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • All 4 of these insiders decreased their holdings by more than 10%.

Coca-Cola Enterprises (NYSE:CCE) produces, distributes, and markets nonalcoholic beverages.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Coca-Cola Enterprises' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Laura BrightwellSVPMay 25,660Yes22,474 shares20.1%
Esat SezerSVPMay 216,325Yes5,495 shares74.8%
Suzanne PattersonCAOMay 211,235Yes0 shares100%
Thomas JohnsonDirectorApril 283,500No13,000 shares21.2%

There have been 36,720 shares sold by insiders during the last 30 days. Laura Brightwell, Esat Sezer, and Suzanne Patterson 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 Coca-Cola Enterprises' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201433,2200
April 20143,5000
March 201400
February 201440,4270
January 201400
December 201300
November 2013107,9510
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 2013194,4450
February 201329,5840
January 201350,0000

There have been 459,127 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Coca-Cola Enterprises reported the first-quarter financial results on April 24 with the following highlights:

Revenue$1.9 billion
Net income$115 million
Cash$286 million
Debt$4.1 billion

The four insiders sold their shares after these results.

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Coca-Cola Enterprises' revenue growth peaked in 2011.

Outlook

Coca-Cola Enterprises' 2014 guidance is as follows:

Net sales growthlow single digit
EPS growth~10%
Free cash flow$650 million
CapEx$350 million

Competition

Coca-Cola Enterprises' competitors include Danone (OTCQX:DANOY), Nestl (OTCPK:NSRGY), and Pepsico (NYSE:PEP). Here is a table comparing these companies.

CompanyCCEDANOYNSRGYPEP
Market Cap:11.63B42.14B246.05B129.65B
Employees:11,750104,642333,000274,000
Qtrly Rev Growth (yoy):0.01-0.020.000.00
Revenue:8.23B29.54B105.05B66.46B
Gross Margin:0.350.480.480.53
EBITDA:1.35B4.77B19.68B12.56B
Operating Margin:0.130.130.160.15
Net Income:721.00M1.97B11.39B6.87B
EPS:2.700.673.564.43
P/E:17.1221.4121.6719.32
PEG (5 yr expected):1.4919.995.912.62
P/S:1.401.492.351.95

Coca-Cola Enterprises has the lowest gross margin among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
DANOYN/AN/A
NSRGYN/AN/A
PEP074,807

Only Coca-Cola Enterprises has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Coca-Cola Enterprises, and there have not been any insiders buying Coca-Cola Enterprises during the last 30 days. All four of these insiders decreased their holdings by more than 10%. Coca-Cola Enterprises has an insider ownership of 6.98%.

Before going short Coca-Cola Enterprises, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are weak revenue growth, and the intensive insider-selling activity.

Source: Coca-Cola Enterprises: 4 Different Insiders Have Sold Shares During The Last 30 Days