SunPower: 6 Different Insiders Have Sold Shares During The Last 30 Days

Jun. 9.14 | About: SunPower Corporation (SPWR)


6 insiders sold SunPower stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

5 of these 6 insiders decreased their holdings by more than 10%.

SunPower Corporation (NASDAQ:SPWR) designs, manufactures, and delivers solar systems to residential, commercial, and utility customers.
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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold RSU Exercise & Sale Rule 10b5-1 Current Ownership Decrease In Ownership
Thomas Werner CEO June 2-3 50,000 Yes Yes 284,638
Eric Branderiz SVP May 19-June 3 7,235 Yes Yes 0 shares 100%
Marty Neese COO May 16 11,815 No Yes 250,104 shares + 100,000 options 3.3%
Catherine Lesjak Director May 15 2,198 Yes Yes 0 shares 100%
Douglas Richards EVP May 12 4,157 No Yes 29,463 shares 12.4%
Charles Boynton CFO May 12 26,453 No Yes 35,784 shares 42.5%
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There have been 101,858 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 SunPower's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 54,115 0
May 2014 47,743 0
April 2014 0 0
March 2014 132,084 0
February 2014 17,630 0
January 2014 22,075 0
December 2013 8,500 0
November 2013 13,500 0
October 2013 54,810 0
September 2013 6,242 0
August 2013 15,704 0
July 2013 100,000 0
June 2013 36,091 0
May 2013 153,919 0
April 2013 0 0
March 2013 0


February 2013 10,550 0
January 2013 24,196 0
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There have been 697,159 shares sold and there have been zero shares purchased by insiders since January 2013.


SunPower reported the first-quarter financial results on April 24 with the following highlights:

GAAP Revenue $692.4 million
GAAP Net income $65.0 million
Cash $754.7 million
Debt $914.4 million
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The six insiders sold their shares after this report.

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(Source: Earnings presentation)


SunPower's guidance is as follows:

Q2/2014 FY2014
GAAP Revenue $500-$550 million $2.55-$2.70 billion
GAAP EPS -$0.10 to $0.10 $0.75-$1.05
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(Source: Earnings presentation)


SunPower's competitors include First Solar (NASDAQ:FSLR). Here is a table comparing these two companies.

Market Cap: 4.41B 6.30B
Employees: 6,320 4,850
Qtrly Rev Growth (yoy): 0.09 0.26
Revenue: 2.56B 3.50B
Gross Margin: 0.23 0.27
EBITDA: 357.57M 769.62M
Operating Margin: 0.10 0.15
Net Income: 215.33M 405.90M
EPS: 1.47 4.12
P/E: 22.95 15.26
P/S: 1.74 1.83
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SunPower has a higher P/E ratio than First Solar. First Solar saw intensive insider selling in May.


There have been six different insiders selling SunPower, and there have not been any insiders buying SunPower during the last 30 days. Five of these six insiders decreased their holdings by more than 10%. SunPower has an insider ownership of 65.82%.

Before going short SunPower, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/E ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in FSLR over 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.