Sprint: 3 Different Insiders Have Sold Shares This Month

| About: Sprint Corporation (S)

Summary

3 insiders sold Sprint 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% each.

Sprint Corporation (NYSE:S) provides wireless and wireline communications services to consumers, businesses, and government users in the United States, Puerto Rico, and the U.S.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Paul Schieber VP May 13 48,964 No 104,932 shares + 42,427 options 24.9%
Stephen Bye CTO May 9 24,855 No 124,632 shares 16.6%
Robert Johnson CS&IT May 1 230,938 No 543,438 shares + 97,196 options 26.5%
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There have been 304,757 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

Month Insider selling / shares Insider buying / shares
May 2014 304,757 0
April 2014 0 0
March 2014 59,157 0
February 2014 184,711 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 14,475,293
August 2013 1,961,583 60,084,348
July 2013 0 0
June 2013 0 0
May 2013 332,460 0
April 2013 17,698 0
March 2013 0 0
February 2013 123,951 0
January 2013 0 0
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There have been 2,984,317 shares sold, and there have been 74,559,641 shares purchased by insiders since January 2013.

Financials

Sprint reported the first-quarter financial results on April 29 with the following highlights:

Revenue $8.9 billion
Net loss $151 million
Cash $6.2 billion
Debt $32.8 billion
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The three insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

Sprint's 2014 guidance is as follows:

Adjusted EBITDA $6.7-$6.9 billion
Capital expenditures $8 billion
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(Source: Earnings presentation)

Competition

Sprint's competitors include AT&T (NYSE:T), Verizon (NYSE:VZ), and T-Mobile (NASDAQ:TMUS). Here is a table comparing these companies.

Company S T VZ TMUS
Market Cap: 37.63B 189.54B 198.61B 26.71B
Employees: 25,000 246,730 176,900 40,000
Qtrly Rev Growth (yoy): 0.01 0.04 0.05 0.47
Revenue: 35.58B 129.87B 121.95B 26.62B
Gross Margin: 0.20 0.60 0.63 0.47
EBITDA: 5.68B 47.16B 49.53B 4.64B
Operating Margin: 0.01 0.24 0.27 0.03
Net Income: -2.52B 18.20B 13.49B -223.00M
EPS: -0.73 3.43 4.48 -0.31
P/E: N/A 10.65 10.71 N/A
PEG (5 yr expected): N/A 2.29 2.05 158.38
P/S: 1.00 1.45 1.63 0.99
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Sprint is not profitable currently.

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

Company Insider buying / shares Insider selling / shares
T 0 0
VZ 0 19,339
TMUS 0 8,000
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Only Sprint has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Sprint, and there have not been any insiders buying Sprint during the last 30 days. All three of these insiders decreased their holdings by more than 10% each. Sprint has an insider ownership of 5.57%.

Before going short Sprint, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are 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.