Intuit: 5 Different Insiders Have Sold Shares During The Last 30 Days

Jun. 9.14 | About: Intuit Inc. (INTU)

Summary

5 insiders sold Intuit stock within one month.

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

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

Intuit (NASDAQ:INTU) provides business and financial management solutions for small businesses, consumers, and accounting professionals in the United States, Canada, the United Kingdom, Australia, India, and Singapore.

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Insider selling during the last 30 days

Here is a table of Intuit'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
Mark Flournoy CAO June 5 1,921 Yes No 0 shares + 3,744 options 33.9%
Dan Maurer SVP June 3 75,000 Yes No 17,265 shares + 112,812 options 36.6%
Sasan Goodarzi SVP May 22 2,111 No No 3,179 shares 39.9%
Brad Smith CEO May 22 6,000 No Yes 303,937 shares + 600,966 options 0.7%
Daniel Wernikoff SVP May 23 18,000 Yes No 216 shares 98.8%
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There have been 103,032 shares sold by insiders during the last 30 days. Brad Smith sold his shares 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 Intuit's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 76,921 0
May 2014 26,111 0
April 2014 0 0
March 2014 10,000 0
February 2014 100,000 0
January 2014 0 0
December 2013 8,226 0
November 2013 49,000 0
October 2013 0 0
September 2013 195,632 0
August 2013 213,999 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 22,782

0

February 2013 154,000 0
January 2013 0 0
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There have been 856,671 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

Intuit reported the fiscal 2014 third-quarter, which ended April 30, financial results on May 20 with the following highlights:

Revenue $2.4 billion
Net income $984 million
Cash $2.6 billion
Debt $499 million
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The five insiders sold their shares after this report.

Outlook

Intuit's guidance is as follows:

  Q4/2014 FY2014
Revenue $683-$713 million $4.475-$4.505 billion
GAAP EPS -$0.10 to -$0.12 $3.08-$3.12
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Competition

Intuit's competitors include Automatic Data Processing (NASDAQ:ADP), and H&R Block (NYSE:HRB). Here is a table comparing these companies.

Company INTU ADP HRB
Market Cap: 22.72B 38.38B 8.31B
Employees: 8,000 60,000 2,200
Qtrly Rev Growth (yoy): 0.14 0.07 -0.58
Revenue: 4.43B 11.96B 2.66B
Gross Margin: 0.87 0.49 0.61
EBITDA: 1.50B 2.49B 591.79M
Operating Margin: 0.30 0.18 0.18
Net Income: 844.00M 1.44B 259.30M
EPS: 3.13 3.00 0.83
P/E: 25.54 26.55 36.56
PEG (5 yr expected): 1.71 2.44 1.65
P/S: 5.09 3.17 3.07
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Intuit has the 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
ADP 0 324,383
HRB 0 0
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Automatic Data Processing has also seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Intuit, and there have not been any insiders buying Intuit during the last 30 days. Four of these five insiders decreased their holdings by more than 10%. Intuit has an insider ownership of 4.68%.

Before going short Intuit, 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/S ratio, and the intensive insider-selling activity.

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