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Summary

  • 7 insiders sold F5 Networks stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 3 of these 7 insiders decreased their holdings by more than 10%.

F5 Networks (NASDAQ:FFIV) develops, markets, and sells application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems.

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Insider selling during the last 30 days

Here is a table of F5 Networks' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
John McAdamCEOMay 814,000Yes93,131 shares13.1%
Karl TriebesCTOMay 15,508Yes33,976 shares13.9%
Scot RogersGCMay 1620Yes10,683 shares5.5%
Manuel RiveloEVPMay 15,134Yes51,065 shares9.1%
Andrew ReinlandCFOMay 12,571Yes69,779 shares3.6%
Thomas FeringaEVPMay 14,709Yes37,933 shares11.0%
Edward EamesEVPMay 14,905Yes56,236 shares8.0%

There have been 37,447 shares sold by insiders during the last 30 days. All these shares were sold 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 F5 Networks' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201437,4470
April 201400
March 201400
February 201439,7370
January 201400
December 201317,5800
November 201313,2200
October 201300
September 201300
August 201380,8900
July 201300
June 201300
May 201318,1420
April 201300
March 201300
February 2013108,8760
January 201300

There have been 315,892 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

F5 Networks reported the fiscal 2014 second-quarter, which ended March 31, financial results on April 23 with the following highlights:

Revenue$420.0 million
GAAP net income$69.6 million
Cash$623.8 million

The seven insiders sold their shares after these results.

Outlook

F5 Networks' fiscal 2014 third-quarter guidance is as follows:

Revenue$428-$438 million
EPS$0.99-$1.02

Competition

F5 Networks' competitors include Cisco (NASDAQ:CSCO), Citrix Systems (NASDAQ:CTXS), and Juniper Networks (NYSE:JNPR). Here is a table comparing these companies.

CompanyFFIVCSCOCTXSJNPR
Market Cap:7.88B117.76B9.89B12.09B
Employees:3,35674,0499,0419,483
Qtrly Rev Growth (yoy):0.20-0.080.120.11
Revenue:1.59B47.87B3.00B4.78B
Gross Margin:0.820.590.860.63
EBITDA:488.92M12.98B679.44M804.50M
Operating Margin:0.280.220.140.13
Net Income:282.10M8.17B335.77M459.40M
EPS:3.611.521.780.90
P/E:29.0315.0333.8827.63
PEG (5 yr expected):1.211.521.691.08
P/S:4.982.503.342.52

F5 Networks has the highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
CSCO0199,302
CTXS022,726
JNPR02,014,837

Only F5 Networks has seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling F5 Networks, and there have not been any insiders buying F5 Networks during the last 30 days. Three of these seven insiders decreased their holdings by more than 10%. F5 Networks has an insider ownership of 0.31%.

F5 Networks has a $86 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $86 price target. I would place a stop loss at $117, which is the two-year high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, and the intensive insider-selling activity.

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Source: F5 Networks: 7 Different Insiders Have Sold Shares This Month