Luminex: 3 Different Insiders Have Sold Shares This Month

May.10.14 | About: Luminex Corporation (LMNX)

Summary

3 insiders sold Luminex stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

2 of these 3 insiders decreased their holdings by more than 10%.

Luminex Corporation (NASDAQ:LMNX) develops, manufactures, and sells proprietary biological testing technologies and products for the life sciences and diagnostic industries.

Click to enlarge

Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Fred Goad Director May 2 50,000 No 325,555 shares 13.3%
Harriss Currie CFO May 1 11,000 No 186,576 shares 5.6%
David Reiter SVP May 1 15,000 No 60,400 shares 19.9%
Click to enlarge

There have been 76,000 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

Month Insider selling / shares Insider buying / shares
May 2014 76,000 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 88,000 0
August 2013 204,638 68,034
July 2013 0 0
June 2013 0 0
May 2013 10,000 216,250
April 2013 0 0
March 2013 0 0
February 2013 111,100 0
January 2013 0 0
Click to enlarge

There have been 489,738 shares sold, and there have been 284,284 shares purchased by insiders since January 2013.

Financials

Luminex reported the first-quarter financial results on April 28 with the following highlights:

Revenue $56.6 million
Net income $6.0 million
Cash $81.9 million
Debt $1.6 million
Click to enlarge

The three insiders sold their shares after these results.

Click to enlarge

(Source: Earnings presentation)

Outlook

Luminex' 2014 revenue guidance is between $225 million and $240 million.

Click to enlarge

(Source: Earnings presentation)

Upcoming milestones

Luminex has the following upcoming milestones.

Click to enlarge

(Source: Earnings presentation)

Competition

Luminex' competitors include Affymetrix (NASDAQ:AFFX) and Sequenom (NASDAQ:SQNM). Here is a table comparing these companies.

Company LMNX AFFX SQNM
Market Cap: 745.43M 536.15M 310.77M
Employees: 731 1,100 570
Qtrly Rev Growth (yoy): 0.06 0.06 0.20
Revenue: 216.78M 335.42M 170.20M
Gross Margin: 0.69 0.55 0.39
EBITDA: 36.33M 26.87M -62.92M
Operating Margin: 0.09 -0.01 -0.46
Net Income: 15.57M -11.36M -93.72M
EPS: 0.37 -0.16 -0.81
P/E: 47.90 N/A N/A
PEG (5 yr expected): 0.90 2.49 -0.32
P/S: 3.44 1.60 1.83
Click to enlarge

Luminex has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities during the last six months.

Company Insider buying / shares Insider selling / shares
AFFX 0 6,205
SQNM 0 0
Click to enlarge

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

Conclusion

There have been three different insiders selling Luminex, and there have not been any insiders buying Luminex during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Luminex has an insider ownership of 7.84%.

Luminex has an $11.50 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $11.50 price target. I would place a stop loss at $24, which is the 52-week high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

Click to enlarge

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in LMNX over 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.