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Summary

  • 4 insiders sold FLIR Systems' stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 3 of these 4 insiders decreased their holdings by more than 10%.

FLIR Systems (NASDAQ:FLIR) designs, manufactures, and markets thermal imaging, and other sensing products and systems worldwide.

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Insider selling during the last 30 days

Here is a table of FLIR Systems' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Earl LewisDirectorMay 1-250,000No848,079 shares + 460,000 options3.7%
Angus MacdonaldDirectorApr 29-May 229,000No16,073 shares64.3%
John CarterDirectorApril 2948,000No30,073 shares + 10,900 options53.9%
Steven WynneDirectorApril 2932,000No23,073 shares + 10,900 options48.5%

There have been 159,000 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of FLIR Systems' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201461,0550
April 201497,9450
March 2014371,4130
February 201452,6270
January 201400
December 201300
November 201300
October 201300
September 201300
August 201315,2910
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 598,331 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

FLIR Systems reported the first-quarter financial results on April 25 with the following highlights:

Revenue$351.5 million
Net income$29.9 million
Cash$584.1 million
Debt$383.9 million

The four insiders sold their shares after these results.

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FLIR Systems' revenues peaked in 2011.

Outlook

FLIR Systems' 2014 guidance is as follows:

Revenue$1.45-$1.55 billion
EPS$1.40-$1.50

Competition

FLIR Systems' competitors include L-3 Communications Holdings (NYSE:LLL) and Lockheed Martin (NYSE:LMT). Here is a table comparing these companies.

CompanyFLIRLLLLMT
Market Cap:4.90B9.87B52.05B
Employees:2,83948,000115,000
Qtrly Rev Growth (yoy):0.01-0.07-0.04
Revenue:1.50B12.42B44.94B
Gross Margin:0.480.100.11
EBITDA:313.79M1.50B5.62B
Operating Margin:0.170.100.11
Net Income:155.27M765.00M3.12B
EPS:1.088.449.67
P/E:32.2213.6017.08
PEG (5 yr expected):1.673.381.69
P/S:3.290.791.15

FLIR Systems has the highest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
LLL0407,181
LMT098,228

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

Conclusion

There have been four different insiders selling FLIR Systems, and there have not been any insiders buying FLIR Systems during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. FLIR Systems has an insider ownership of 1.04%.

Before going short FLIR Systems, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, relatively high P/E ratio, and the intensive insider-selling activity.

Source: FLIR Systems: 4 Different Insiders Have Sold Shares During The Last 30 Days