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

May. 5.14 | About: Coca-Cola Enterprises (CCE)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Laura Brightwell SVP May 2 5,660 Yes 22,474 shares 20.1%
Esat Sezer SVP May 2 16,325 Yes 5,495 shares 74.8%
Suzanne Patterson CAO May 2 11,235 Yes 0 shares 100%
Thomas Johnson Director April 28 3,500 No 13,000 shares 21.2%
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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.

Month Insider selling / shares Insider buying / shares
May 2014 33,220 0
April 2014 3,500 0
March 2014 0 0
February 2014 40,427 0
January 2014 0 0
December 2013 0 0
November 2013 107,951 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 194,445 0
February 2013 29,584 0
January 2013 50,000 0
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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
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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 growth low single digit
EPS growth ~10%
Free cash flow $650 million
CapEx $350 million
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Competition

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

Company CCE DANOY NSRGY PEP
Market Cap: 11.63B 42.14B 246.05B 129.65B
Employees: 11,750 104,642 333,000 274,000
Qtrly Rev Growth (yoy): 0.01 -0.02 0.00 0.00
Revenue: 8.23B 29.54B 105.05B 66.46B
Gross Margin: 0.35 0.48 0.48 0.53
EBITDA: 1.35B 4.77B 19.68B 12.56B
Operating Margin: 0.13 0.13 0.16 0.15
Net Income: 721.00M 1.97B 11.39B 6.87B
EPS: 2.70 0.67 3.56 4.43
P/E: 17.12 21.41 21.67 19.32
PEG (5 yr expected): 1.49 19.99 5.91 2.62
P/S: 1.40 1.49 2.35 1.95
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Coca-Cola Enterprises has the lowest gross margin among these four companies.

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

Company Insider buying / shares Insider selling / shares
DANOY N/A N/A
NSRGY N/A N/A
PEP 0 74,807
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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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.