Cisco Systems (NASDAQ:CSCO) designs, manufactures, and sells Internet Protocol and other products related to the communications and information technology industry worldwide.
Insider selling during the last 30 days
Here is a table of Cisco'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|
|Pankaj Patel||EVP||May 19-June 10||60,000||No||Yes||1,002,364 shares + 855,000 options||3.1%|
|Blair Christie||SVP||May 19-June 10||309,083||Yes & No||Yes||280,739 shares + 100,000 options||44.8%|
|John Chambers||CEO||May 19-June 10||2,300,000||Yes & No||Yes||2,098,733
shares + 3,075,000 options
|Michele Burns||Director||May 23-30||30,000||Yes & No||No||59,864
shares + 30,000 options
|Steven West||Director||May 20||25,000||No||No||46,099 shares + 30,000 options||24.7%|
|Charles Robbins||SVP||May 19||70,000||Yes||Yes||580,297
shares + 218,667
|Gary Moore||COO||May 19||137,500||Yes||Yes||642,154
shares + 590,000 options
|Roderick McGeary||Director||May 20||20,000||Yes||No||109,622
shares + 30,000 options
|Frank Calderoni||CFO||May 19||178,750||Yes||Yes||638,531
shares + 1,040,000 options
There have been 3,130,333 shares sold by insiders during the last 30 days. Pankaj Patel, Blair Christie, John Chambers, Charles Robbins, Gary Moore, and Frank Calderoni sold their 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 Cisco's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 8,032,549 shares sold and there have been zero shares purchased by insiders since January 2013. The month of May 2014 has seen the most insider selling.
Cisco reported the fiscal 2014 third-quarter, which ended April 27, financial results on May 14 with the following highlights:
|Net income||$2.2 billion|
The nine insiders sold their shares after these results.
Cisco has negative revenue growth currently.
Cisco's fourth-quarter guidance is as follows:
|Revenue growth (year-over-year)||-3% to -1%|
|Qtrly Rev Growth (yoy):||-0.06||-0.03||-0.01||0.11|
|PEG (5 yr expected):||1.59||0.64||1.96||1.08|
There have been nine different insiders selling Cisco and there have not been any insiders buying Cisco during the last 30 days. Six of these nine insiders decreased their holdings by more than 10%. Cisco has an insider ownership of 0.09%.
Before going short Cisco, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth, and the intensive insider-selling activity.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.