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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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Matthew PfefferCFOJune 410,000YesYes146,257
shares + 636,753 options
1.3%
Juergen MartensVPMay 19-June 5287,940Yes & NoYes114,024
shares + 378,206 options
36.9%
David ThomsonVPMay 19-June 4148,091Yes & NoYes102,286 shares + 397,060 options22.9%
Diane PalumboVPMay 15-June 3193,033Yes & NoYes158,858 shares + 9,043 options53.5%

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.

MonthInsider selling / sharesInsider buying / shares
June 2014381,5810
May 2014257,4830
April 201400
March 201400
February 201450,0000
January 201450,0000
December 2013182,0542,775
November 201373,0570
October 201300
September 201300
August 201349,2040
July 201310,0000
June 201366,8499,058
May 201336,8290
April 201300
March 20130

0

February 201300
January 201300

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

The four insiders sold their shares after this report.

(click to enlarge)

(Source: Investor Presentation)

Upcoming milestones

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

(click to enlarge)

(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.

(click to enlarge)

(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.

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