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Summary

  • 3 insiders sold Hologic 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%.

Hologic (NASDAQ:HOLX) develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Robert LavalleeCAOMay 622,796No11,341 shares66.8%
Lawrence LevyDirectorMay 65,052No0 shares100%
Glenn MuirCFOMay 5-6196,000No815,306 shares + 236,060 options15.7%

There have been 223,848 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Hologic's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 2014223,8480
April 201400
March 2014168,7510
February 20140237,500
January 201400
December 201315,6770
November 201300
October 2013168,0000
September 201330,5000
August 201390,1320
July 201359,2540
June 201348,0000
May 201300
April 201300
March 201317,7710
February 2013140,5390
January 2013151,5110

There have been 1,113,983 shares sold, and there have been 237,500 shares purchased by insiders since January 2013. The month of May 2014 has seen the most insider selling.

Financials

Hologic reported the fiscal 2014 second-quarter, which ended March 29, financial results on April 30 with the following highlights:

Revenue$625.0 million
Net loss$16.8 million
Cash$490.4 million
Debt$4.3 billion

The three insiders sold their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

Hologic's guidance is as follows:

Q3/2014FY2014
Revenue$615-$625 million$2.46-$2.49 billion
Non-GAAP EPS$0.33-$0.34$1.37-$1.40

(click to enlarge)

(Source: Earnings presentation)

Competition

Hologic's competitors include Becton, Dickinson and Company (NYSE:BDX), and Alere Inc. (NYSE:ALR). Here is a table comparing these companies.

CompanyHOLXBDXALR
Market Cap:6.69B22.58B2.89B
Employees:5,61529,97917,600
Qtrly Rev Growth (yoy):0.030.04-0.03
Revenue:2.47B8.20B3.01B
Gross Margin:0.650.520.50
EBITDA:911.29M2.13B608.17M
Operating Margin:0.160.200.05
Net Income:-1.15B941.00M-111.22M
EPS:-4.224.79-1.36
P/E:N/A24.41N/A
PEG (5 yr expected):2.422.061.38
P/S:2.722.720.97

Hologic has the highest PEG ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
BDX01,303
ALR00

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

Conclusion

There have been three different insiders selling Hologic, and there have not been any insiders buying Hologic during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Hologic has an insider ownership of 0.44%.

Before going short Hologic, 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 PEG ratio, negative earnings, 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.

Source: Hologic: 3 Different Insiders Have Sold Shares This Month