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

Jun. 1.14 | About: Highwoods Properties (HIW)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Option Exercise & Sale Rule 10b5-1 Current Ownership Decrease In Ownership
David Hartzell Director May 15 10,000 Yes No 12,645 shares 44.2%
Sherry Kellett Director May 14 10,000 Yes No 17,833 shares 35.9%
Jeffrey Miller VP May 2 24,251 Yes No 67,525 shares + 12,355 options 23.3%
Edward Fritsch CEO May 2-5 106,897 Yes No 387,408 shares + 210,196 options 15.2%
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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.

Month Insider selling / shares Insider buying / shares
May 2014 151,148 0
April 2014 0 0
March 2014 10,896 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 64,190 0
May 2013 50,000 0
April 2013 4,683 0
March 2013 263,750

0

February 2013 74,342 0
January 2013 13,332 0
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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
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The four insiders sold their shares after this report.

Outlook

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

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(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.

Company HIW BXP CLI
Market Cap: 3.65B 18.39B 1.82B
Employees: 426 760 635
Qtrly Rev Growth (yoy): 0.14 0.19 -0.01
Revenue: 576.68M 2.30B 663.90M
Gross Margin: 0.63 0.65 0.54
EBITDA: 286.46M 1.39B 312.61M
Operating Margin: 0.24 0.35 0.19
Net Income: 56.43M 641.50M -99.37M
EPS: 1.40 4.89 -0.51
P/E: 28.94 24.57 N/A
PEG (5 yr expected): 3.92 2.85 -9.12
P/S: 6.30 7.92 2.72
P/B: 2.56 3.31 1.12
Dividend Yield: 4.20% 2.20% 5.90%
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Highwoods Properties has the second-highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
BXP 0 55,003
CLI 0 64,623
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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.

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.