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Summary

  • 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.
(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRSU Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Thomas WernerCEOJune 2-350,000YesYes284,638
shares
14.9%
Eric BranderizSVPMay 19-June 37,235YesYes0 shares100%
Marty NeeseCOOMay 1611,815NoYes250,104 shares + 100,000 options3.3%
Catherine LesjakDirectorMay 152,198YesYes0 shares100%
Douglas RichardsEVPMay 124,157NoYes29,463 shares12.4%
Charles BoyntonCFOMay 1226,453NoYes35,784 shares42.5%

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.

MonthInsider selling / sharesInsider buying / shares
June 201454,1150
May 201447,7430
April 201400
March 2014132,0840
February 201417,6300
January 201422,0750
December 20138,5000
November 201313,5000
October 201354,8100
September 20136,2420
August 201315,7040
July 2013100,0000
June 201336,0910
May 2013153,9190
April 201300
March 20130

0

February 201310,5500
January 201324,1960

There have been 697,159 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

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

The six insiders sold their shares after this report.

(click to enlarge)

(Source: Earnings presentation)

Outlook

SunPower's guidance is as follows:

Q2/2014FY2014
GAAP Revenue$500-$550 million$2.55-$2.70 billion
GAAP EPS-$0.10 to $0.10$0.75-$1.05

(click to enlarge)

(Source: Earnings presentation)

Competition

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

CompanySPWRFSLR
Market Cap:4.41B6.30B
Employees:6,3204,850
Qtrly Rev Growth (yoy):0.090.26
Revenue:2.56B3.50B
Gross Margin:0.230.27
EBITDA:357.57M769.62M
Operating Margin:0.100.15
Net Income:215.33M405.90M
EPS:1.474.12
P/E:22.9515.26
P/S:1.741.83

SunPower has a higher P/E ratio than First Solar. First Solar saw intensive insider selling in May.

Conclusion

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.

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