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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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Paul SchieberVPMay 1348,964No104,932 shares + 42,427 options24.9%
Stephen ByeCTOMay 924,855No124,632 shares16.6%
Robert JohnsonCS&ITMay 1230,938No543,438 shares + 97,196 options26.5%

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.

MonthInsider selling / sharesInsider buying / shares
May 2014304,7570
April 201400
March 201459,1570
February 2014184,7110
January 201400
December 201300
November 201300
October 201300
September 2013014,475,293
August 20131,961,58360,084,348
July 201300
June 201300
May 2013332,4600
April 201317,6980
March 201300
February 2013123,9510
January 201300

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

The three insiders sold their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

Sprint's 2014 guidance is as follows:

Adjusted EBITDA$6.7-$6.9 billion
Capital expenditures$8 billion

(click to enlarge)

(Source: Earnings presentation)

Competition

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

CompanySTVZTMUS
Market Cap:37.63B189.54B198.61B26.71B
Employees:25,000246,730176,90040,000
Qtrly Rev Growth (yoy):0.010.040.050.47
Revenue:35.58B129.87B121.95B26.62B
Gross Margin:0.200.600.630.47
EBITDA:5.68B47.16B49.53B4.64B
Operating Margin:0.010.240.270.03
Net Income:-2.52B18.20B13.49B-223.00M
EPS:-0.733.434.48-0.31
P/E:N/A10.6510.71N/A
PEG (5 yr expected):N/A2.292.05158.38
P/S:1.001.451.630.99

Sprint is not profitable currently.

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

CompanyInsider buying / sharesInsider selling / shares
T00
VZ019,339
TMUS08,000

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.

Source: Sprint: 3 Different Insiders Have Sold Shares This Month