Nielsen Holdings: 4 Different Insiders Have Sold Shares During The Last 30 Days

May.11.14 | About: Nielsen Holdings (NLSN)

Summary

4 insiders sold Nielsen Holdings stock within one month.

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

3 of these 4 insiders decreased their holdings by more than 10%.

Nielsen N.V. (NYSE:NLSN) provides media and marketing information, analytics, and industry expertise about what consumers watch and listen.
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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Valcon Acquisition Holding (Luxembourg) S.A R.L. 10% Owner May 7 1,139,058 No 94,085,666 shares 1.2%
James Kilts Director May 7 1,610,933 No 0 shares 100%
James Cuminale CLO April 29 103,750 Yes 110,700 shares + 35,625 options 41.5%
David Calhoun Director April 29 565,625 Yes 1,247,159 shares 31.2%
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There have been 2,280,308 shares sold by insiders during the last 30 days. James Cuminale and David Calhoun 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 Nielsen Holdings' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 1,610,933 0
April 2014 738,594 0
March 2014 30,000,000 0
February 2014 46,758 0
January 2014 85,181 0
December 2013 55,876 0
November 2013 30,190,857 0
October 2013 208,705 0
September 2013 30,876 0
August 2013 43,213 0
July 2013 43,176 0
June 2013 103,215 0
May 2013 40,891,861 0
April 2013 772,373 0
March 2013 272,325 0
February 2013 40,803,198 0
January 2013 0 0
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There have been 145,897,141 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Nielsen Holdings reported the first-quarter financial results on April 24 with the following highlights:

Revenue $1.5 billion
Net income $58 million
Cash $301 million
Debt $6.6 billion
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The four insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

Nielsen Holdings' 2014 guidance is as follows:

Revenue growth 11.5%-13.5%
Adjusted net income $2.45-$2.55 per share
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(Source: Earnings presentation)

Competition

Nielsen Holdings' competitors include Rentrak (NASDAQ:RENT). Here is a table comparing these two companies.

Company NLSN RENT
Market Cap: 17.75B 694.47M
Employees: 40,000 352
Qtrly Rev Growth (yoy): 0.13 0.27
Revenue: 5.87B 118.44M
Gross Margin: 0.58 0.46
EBITDA: 1.39B 14.50M
Operating Margin: 0.18 0.10
Net Income: 470.00M -4.20M
EPS: 1.99 -0.35
P/E: 23.54 N/A
PEG (5 yr expected): 1.11 -3.43
P/S: 3.02 5.88
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Nielsen Holdings is not growing as fast as Rentrak. In Rentrak, there have been 30,199 shares sold, and there have been 4,000 shares purchased by insiders this year. Only Nielsen Holdings has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Nielsen Holdings, and there have not been any insiders buying Nielsen Holdings during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Nielsen Holdings has an insider ownership of 42.03%.

Before going short Nielsen Holdings, 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.