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

| About: Ensco PLC (ESV)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Mary Francis Director June 11 757 No 2,756 shares 21.5%
Steven Brady SVP June 6 4,869 No 53,609
shares
8.3%
John Knowlton SVP June 3 7,500 No 37,741 shares 16.6%
Daniel Rabun Chairman May 22-30 100,000 No 202,129
shares + 243,074
options
18.3%
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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.

Month Insider selling / shares Insider buying / shares
June 2014 13,126 0
May 2014 100,000 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 13,313 0
November 2013 108,134 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 12,737 0
May 2013 85,118 0
April 2013 0 0
March 2013 97,000 1,000
February 2013 7,500 0
January 2013 68,881 0
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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
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The four insiders sold their shares after these results.

Outlook

Ensco expects to deliver eight newbuild rigs through 2016.

(Source: Investor presentation)

Competition

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

Company ESV DO RIG
Market Cap: 12.45B 6.80B 16.05B
Employees: 9,000 5,500 15,100
Qtrly Rev Growth (yoy): 0.03 -0.02 0.07
Revenue: 4.96B 2.83B 9.64B
Gross Margin: 0.51 0.45 0.42
EBITDA: 2.35B 1.17B 3.77B
Operating Margin: 0.35 0.27 0.28
Net Income: 1.38B 518.51M 1.53B
EPS: 5.96 3.73 4.24
P/E: 8.94 13.30 10.45
PEG (5 yr expected): 0.69 1.30 0.75
P/S: 2.49 2.36 1.64
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Ensco 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
DO 5,000 3,127
RIG 0 1,816
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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.

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.