Hologic: 3 Different Insiders Have Sold Shares This Month

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 |  About: Hologic, Inc. (HOLX), Includes: ALR, BDX
by: Markus Aarnio

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Robert Lavallee CAO May 6 22,796 No 11,341 shares 66.8%
Lawrence Levy Director May 6 5,052 No 0 shares 100%
Glenn Muir CFO May 5-6 196,000 No 815,306 shares + 236,060 options 15.7%
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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.

Month Insider selling / shares Insider buying / shares
May 2014 223,848 0
April 2014 0 0
March 2014 168,751 0
February 2014 0 237,500
January 2014 0 0
December 2013 15,677 0
November 2013 0 0
October 2013 168,000 0
September 2013 30,500 0
August 2013 90,132 0
July 2013 59,254 0
June 2013 48,000 0
May 2013 0 0
April 2013 0 0
March 2013 17,771 0
February 2013 140,539 0
January 2013 151,511 0
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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
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The three insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

Hologic's guidance is as follows:

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

Company HOLX BDX ALR
Market Cap: 6.69B 22.58B 2.89B
Employees: 5,615 29,979 17,600
Qtrly Rev Growth (yoy): 0.03 0.04 -0.03
Revenue: 2.47B 8.20B 3.01B
Gross Margin: 0.65 0.52 0.50
EBITDA: 911.29M 2.13B 608.17M
Operating Margin: 0.16 0.20 0.05
Net Income: -1.15B 941.00M -111.22M
EPS: -4.22 4.79 -1.36
P/E: N/A 24.41 N/A
PEG (5 yr expected): 2.42 2.06 1.38
P/S: 2.72 2.72 0.97
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Hologic has the highest PEG ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
BDX 0 1,303
ALR 0 0
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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.