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

Jun. 9.14 | About: MannKind Corporation (MNKD)

Summary

4 insiders sold MannKind stock within one month.

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

3 of these 4 insiders decreased their holdings by more than 10%.

MannKind Corporation (NASDAQ:MNKD) focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer in the United States.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Option Exercise & Sale Rule 10b5-1 Current Ownership Decrease In Ownership
Matthew Pfeffer CFO June 4 10,000 Yes Yes 146,257
shares + 636,753 options
1.3%
Juergen Martens VP May 19-June 5 287,940 Yes & No Yes 114,024
shares + 378,206 options
36.9%
David Thomson VP May 19-June 4 148,091 Yes & No Yes 102,286 shares + 397,060 options 22.9%
Diane Palumbo VP May 15-June 3 193,033 Yes & No Yes 158,858 shares + 9,043 options 53.5%
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There have been 639,064 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 MannKind's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 381,581 0
May 2014 257,483 0
April 2014 0 0
March 2014 0 0
February 2014 50,000 0
January 2014 50,000 0
December 2013 182,054 2,775
November 2013 73,057 0
October 2013 0 0
September 2013 0 0
August 2013 49,204 0
July 2013 10,000 0
June 2013 66,849 9,058
May 2013 36,829 0
April 2013 0 0
March 2013 0

0

February 2013 0 0
January 2013 0 0
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There have been 1,157,057 shares sold, and there have been 11,833 shares purchased by insiders since January 2013. The month of June 2014 has seen the most insider selling.

Financials

MannKind reported the first-quarter financial results on May 12, with the following highlights:

Revenue $0
Net loss $52.1 million
Cash $35.8 million
Debt $174.1 million
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The four insiders sold their shares after this report.

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(Source: Investor Presentation)

Upcoming milestones

MannKind's next upcoming catalyst is the Afrezza July PDUFA date.

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(Source: Investor Presentation)

MannKind doesn't have any approved products yet. The market for rapid-acting analogs is large and growing, showing a 22% compound annual growth rate.

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(Source: Investor Presentation)

Conclusion

There have been four different insiders selling MannKind, and there have not been any insiders buying MannKind during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. MannKind has an insider ownership of 46.99%.

Before going short MannKind, 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.