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Summary

  • 4 insiders sold Ensco stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 3 of these 4 insiders decreased their holdings by more than 10%.

Ensco (NYSE:ESV) provides offshore contract drilling services to the oil and gas industry worldwide.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Ensco's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Mary FrancisDirectorJune 11757No2,756 shares21.5%
Steven BradySVPJune 64,869No53,609
shares
8.3%
John KnowltonSVPJune 37,500No37,741 shares16.6%
Daniel RabunChairmanMay 22-30100,000No202,129
shares + 243,074
options
18.3%

There have been 113,126 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Ensco's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 201413,1260
May 2014100,0000
April 201400
March 201400
February 201400
January 201400
December 201313,3130
November 2013108,1340
October 201300
September 201300
August 201300
July 201300
June 201312,7370
May 201385,1180
April 201300
March 201397,0001,000
February 20137,5000
January 201368,8810

There have been 505,809 shares sold and there have been 1,000 shares purchased by insiders since January 2013.

Financials

Ensco reported the first-quarter financial results on April 28 with the following highlights:

Revenue$1.2 billion
Net income$292.5 million
Cash$122.5 million
Debt$4.8 billion

The four insiders sold their shares after these results.

Outlook

Ensco expects to deliver eight newbuild rigs through 2016.

(click to enlarge)(Source: Investor presentation)

Competition

Ensco's competitors include Diamond Offshore Drilling (NYSE:DO), and Transocean (NYSE:RIG). Here is a table comparing these companies.

CompanyESVDORIG
Market Cap:12.45B6.80B16.05B
Employees:9,0005,50015,100
Qtrly Rev Growth (yoy):0.03-0.020.07
Revenue:4.96B2.83B9.64B
Gross Margin:0.510.450.42
EBITDA:2.35B1.17B3.77B
Operating Margin:0.350.270.28
Net Income:1.38B518.51M1.53B
EPS:5.963.734.24
P/E:8.9413.3010.45
PEG (5 yr expected):0.691.300.75
P/S:2.492.361.64

Ensco has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
DO5,0003,127
RIG01,816

Only Ensco has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Ensco, and there have not been any insiders buying Ensco during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Ensco has an insider ownership of 0.49%.

There are seven analyst buy ratings, 22 neutral ratings, and seven sell ratings with an average price target of $52.48. Before going short Ensco, 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, bearish analyst price targets, and the intensive insider-selling activity.

Source: Ensco: 4 Different Insiders Have Sold Shares During The Last 30 Days