Alexion Pharmaceuticals: 4 Different Insiders Have Sold Shares During The Last 30 Days

Summary

4 insiders sold Alexion stock within one month.

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

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

Alexion Pharmaceuticals (NASDAQ:ALXN) develops and commercializes life-transforming therapeutic products.

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Insider selling during the last 30 days

Here is a table of Alexion'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
Martin Mackay EVP June 12 25,000 Yes No 24,426
shares + 75,000 options
20.1%
Ann Veneman Director June 4 1,236 No No 4,682
shares + 22,212
options
4.4%
William Keller Director June 5 3,425 Yes No 12,276
shares
21.8%
Leonard Bell CEO May 20-27 140,000 Yes Yes 1,032,331
shares + 1,817,658
options
4.7%
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There have been 169,661 shares sold by insiders during the last 30 days. Leonard Bell 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 Alexion's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 29,661 0
May 2014 155,850 0
April 2014 70,000 0
March 2014 60,305 0
February 2014 204,192 0
January 2014 191,436 0
December 2013 273,000 0
November 2013 14,125 0
October 2013 139,037 0
September 2013 36,350 0
August 2013 187,275 0
July 2013 372,125 0
June 2013 0 0
May 2013 122,103 0
April 2013 147,729 0
March 2013 23,115 0
February 2013 0 0
January 2013 70,000 0
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There have been 2,096,303 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

Alexion reported the first-quarter financial results on April 24, with the following highlights:

Revenue $566.6 million
GAAP net income $159.4 million
Cash $1.6 billion
Debt $131.9 million
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The four insiders sold their shares after these results.

Outlook

Alexion's 2014 guidance is as follows:

Revenue $2.15-$2.17 billion
Non-GAAP EPS $4.75-$4.85
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Pipeline and upcoming milestones

Alexion has one approved product, Soliris.

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(Source: Latest 10-Q)

Alexion's goal is to achieve up to seven new indications or product approvals through 2018.

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(Source: Latest 10-Q)

Competition

Alexion's competitors include Amgen (NASDAQ:AMGN) and Baxter (NYSE:BAX). Here is a table comparing these companies.

Company ALXN AMGN BAX
Market Cap: 32.39B 87.84B 39.67B
Employees: 1,774 20,000 61,000
Qtrly Rev Growth (yoy): 0.67 0.07 0.15
Revenue: 1.78B 18.96B 15.76B
Gross Margin: 0.91 0.81 0.51
EBITDA: 694.30M 7.61B 4.09B
Operating Margin: 0.38 0.32 0.20
Net Income: 330.03M 4.72B 2.02B
EPS: 1.65 6.16 3.67
P/E: 98.99 18.84 19.92
PEG (5-yr. expected): 1.09 1.85 1.77
P/S: 18.45 4.64 2.51
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Alexion 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
AMGN 894 27,195
BAX 0 41,214
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Only Alexion has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Alexion, and there have not been any insiders buying Alexion during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Alexion has an insider ownership of 1.07%.

Before going short Alexion, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, relatively high P/E ratio, 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.