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.
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%|
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|
There have been 856,671 shares sold and there have been zero shares purchased by insiders since January 2013.
Intuit reported the fiscal 2014 third-quarter, which ended April 30, financial results on May 20 with the following highlights:
|Net income||$984 million|
The five insiders sold their shares after this report.
Intuit's guidance is as follows:
|Revenue||$683-$713 million||$4.475-$4.505 billion|
|GAAP EPS||-$0.10 to -$0.12||$3.08-$3.12|
|Qtrly Rev Growth (yoy):||0.14||0.07||-0.58|
|PEG (5 yr expected):||1.71||2.44||1.65|
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|
Automatic Data Processing has also seen intensive insider selling during the last 30 days.
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.