International Business Machines Corporation (NYSE:IBM) provides information technology products and services worldwide.
Insider selling during the last 30 days
Here is a table of IBM's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Colleen Arnold||SVP||May 5||5,460||No||23,848 shares||18.6%|
|John Kelly||SVP||May 2||21,972||No||28,609 shares||43.4%|
|Robert Weber||SVP||April 30||6,000||No||23,511 shares||20.3%|
There have been 33,432 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of IBM's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 409,240 shares sold, and there have been 1,000 shares purchased by insiders since January 2013.
IBM reported the first-quarter financial results on April 16 with the following highlights:
|Net income||$2.4 billion|
The three insiders sold their shares after these results.
IBM has negative revenue growth currently.
IBM's 2014 guidance is as follows:
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||-0.04||0.01||-0.01||-0.00|
|PEG (5 yr expected):||1.22||1.51||1.92||1.70|
IBM has the weakest revenue growth among these four companies.
Here is a table of these competitors' insider activities during the last 30 days.
|Company||Insider buying / shares||Insider selling / shares|
Only IBM has seen intensive insider selling during the last 30 days.
There have been three different insiders selling IBM, and there have not been any insiders buying IBM during the last 30 days. All three of these insiders decreased their holdings by more than 10%. IBM has an insider ownership of 0.10%.
Before going short IBM, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative 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.