Raytheon Company (NYSE:RTN) develops integrated products, services, and solutions in the areas of sensing; effects; command, control, communications, and intelligence; mission support; and cyber and information security worldwide.
Insider selling during the last 30 days
Here is a table of Raytheon's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|William Swanson||Chairman||June 6||42,608||Yes||647,310
|Jay Stephens||SVP||May 30-June 6||25,038||Yes||79,961
|Rebecca Rhoads||VP||June 2-6||4,847||Yes||33,597 shares||12.6%|
|Taylor Lawrence||VP||June 2-6||4,169||Yes||66,858
|Richard Goglia||VP||June 2-6||2,994||Yes||21,706 shares||12.1%|
|Michael Wood||CAO||June 2||1,720||Yes||26,735
There have been 81,376 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 Raytheon's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 506,339 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June has seen the most insider selling this year.
Raytheon reported the first-quarter financial results on April 24 with the following highlights:
|Net income||$596 million|
|Funded backlog||$22.8 billion|
The six insiders sold their shares after this report.
Raytheon has negative revenue growth currently.
Raytheon's 2014 guidance is as follows:
|Net sales||$22.5-$23.0 billion|
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||-0.06||0.08||-0.04||-0.04|
|PEG (5 yr expected):||1.22||1.69||1.72||1.84|
Raytheon has the weakest revenue growth among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Raytheon has seen intensive insider selling during the last 30 days.
There have been six different insiders selling Raytheon and there have not been any insiders buying Raytheon during the last 30 days. Three of these six insiders decreased their holdings by more than 10%. Raytheon has an insider ownership of 0.43%.
Before going short Raytheon, 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.