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Summary

  • 4 insiders sold Highwoods Properties stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • All 4 of these insiders decreased their holdings by more than 10% each.

Highwoods Properties (NYSE:HIW) is a real estate investment trust. The trust engages in leasing, management, development, construction, and other customer-related services for its properties and for third parties.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
David HartzellDirectorMay 1510,000YesNo12,645 shares44.2%
Sherry KellettDirectorMay 1410,000YesNo17,833 shares35.9%
Jeffrey MillerVPMay 224,251YesNo67,525 shares + 12,355 options23.3%
Edward FritschCEOMay 2-5106,897YesNo387,408 shares + 210,196 options15.2%

There have been 151,148 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

MonthInsider selling / sharesInsider buying / shares
May 2014151,1480
April 201400
March 201410,8960
February 201400
January 201400
December 201300
November 201300
October 201300
September 201300
August 201300
July 201300
June 201364,1900
May 201350,0000
April 20134,6830
March 2013263,750

0

February 201374,3420
January 201313,3320

There have been 632,341 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

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

Revenue$148.5 million
FFO$61.2 million
Net income$12.1 million
Cash$13.3 million
Debt$2.0 billion

The four insiders sold their shares after this report.

Outlook

Highwoods Properties' 2014 FFO guidance is $2.86-$2.94 per share.

(click to enlarge)

(Source: Investor presentation)

Competition

Highwoods Properties' competitors include Boston Properties (NYSE:BXP) and Mack-Cali Realty Corp. (NYSE:CLI). Here is a table comparing these companies.

CompanyHIWBXPCLI
Market Cap:3.65B18.39B1.82B
Employees:426760635
Qtrly Rev Growth (yoy):0.140.19-0.01
Revenue:576.68M2.30B663.90M
Gross Margin:0.630.650.54
EBITDA:286.46M1.39B312.61M
Operating Margin:0.240.350.19
Net Income:56.43M641.50M-99.37M
EPS:1.404.89-0.51
P/E:28.9424.57N/A
PEG (5 yr expected):3.922.85-9.12
P/S:6.307.922.72
P/B:2.563.311.12
Dividend Yield:4.20%2.20%5.90%

Highwoods Properties has the second-highest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
BXP055,003
CLI064,623

Boston Properties has also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Highwoods Properties, and there have not been any insiders buying Highwoods Properties during the last 30 days. All four of these insiders decreased their holdings by more than 10% each. Highwoods Properties has an insider ownership of 2.41%.

Before going short Highwoods Properties, 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.

Source: Highwoods Properties: 4 Different Insiders Have Sold Shares During The Last 30 Days