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

May. 6.14 | About: FLIR Systems, (FLIR)

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.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Earl Lewis Director May 1-2 50,000 No 848,079 shares + 460,000 options 3.7%
Angus Macdonald Director Apr 29-May 2 29,000 No 16,073 shares 64.3%
John Carter Director April 29 48,000 No 30,073 shares + 10,900 options 53.9%
Steven Wynne Director April 29 32,000 No 23,073 shares + 10,900 options 48.5%
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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.

Month Insider selling / shares Insider buying / shares
May 2014 61,055 0
April 2014 97,945 0
March 2014 371,413 0
February 2014 52,627 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 15,291 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 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
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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
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Competition

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

Company FLIR LLL LMT
Market Cap: 4.90B 9.87B 52.05B
Employees: 2,839 48,000 115,000
Qtrly Rev Growth (yoy): 0.01 -0.07 -0.04
Revenue: 1.50B 12.42B 44.94B
Gross Margin: 0.48 0.10 0.11
EBITDA: 313.79M 1.50B 5.62B
Operating Margin: 0.17 0.10 0.11
Net Income: 155.27M 765.00M 3.12B
EPS: 1.08 8.44 9.67
P/E: 32.22 13.60 17.08
PEG (5 yr expected): 1.67 3.38 1.69
P/S: 3.29 0.79 1.15
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FLIR Systems 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
LLL 0 407,181
LMT 0 98,228
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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.

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.