Baxter: 3 Different Insiders Have Sold Shares During The Last 30 Days

May. 6.14 | About: Baxter International (BAX)


3 insiders sold Baxter's 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%.

Baxter International (NYSE:BAX) develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions.

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Insider selling during the last 30 days

Here is a table of Baxter's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Carole Shapazian Director May 2 5,680 No 11,266 shares 33.5%
Kees Storm Director April 23 5,760 Yes 15,156 shares 27.5%
Blake Devitt Director April 21 4,334 No 16,541 shares 20.8%
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There have been 15,774 shares sold by insiders during the last 30 days. Kees Storm 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 Baxter's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 5,680 0
April 2014 10,094 0
March 2014 21,600 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 1,941 0
August 2013 0 0
July 2013 883,820 0
June 2013 0 0
May 2013 155,800 0
April 2013 0 0
March 2013 10,030 0
February 2013 8,220 0
January 2013 35,000 0
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There have been 1,132,185 shares sold, and there have been zero shares purchased by insiders since January, 2013.


Baxter reported the first-quarter financial results on April 17, with the following highlights:

Revenue $4.0 billion
Net income $556 million
Net debt $6.6 billion
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The three insiders sold their shares after these results.


Baxter's guidance is as follows:

Q2/2014 FY2014
Sales growth 12%-13% 9%-10%
GAAP EPS $1.11-$1.15 $4.67-$4.87
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Baxter's competitors include Becton, Dickinson and Company (NYSE:BDX), Fresenius Medical Care AG & Co. (NYSE:FMS), and Grifols, S.A. (NASDAQ:GRFS). Here is a table comparing these companies.

Market Cap: 40.47B 21.91B 20.67B 28.77B
Employees: 61,000 29,979 90,690 12,615
Qtrly Rev Growth (yoy): 0.15 0.04 0.04 0.05
Revenue: 15.76B 8.20B 14.89B 3.80B
Gross Margin: 0.51 0.52 0.34 0.52
EBITDA: 4.06B 2.13B 2.87B 1.18B
Operating Margin: 0.20 0.20 0.15 0.27
Net Income: 2.02B 941.00M 1.11B 479.24M
EPS: 3.67 4.79 1.83 0.70
P/E: 20.30 23.68 18.78 59.73
PEG (5 yr expected): 2.13 2.06 2.06 N/A
P/S: 2.57 2.65 1.37 7.53
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Baxter has the highest PEG ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
BDX 0 1,303
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Only Baxter has seen intensive insider selling during the last 30 days.


There have been three different insiders selling Baxter, and there have not been any insiders buying Baxter during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Baxter has an insider ownership of 0.15%.

Before going short Baxter, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is 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.