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

| About: Citrix Systems, (CTXS)

Summary

4 insiders sold Citrix 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%.

Citrix Systems (NASDAQ:CTXS) provides virtualization, networking, and cloud infrastructure solutions worldwide.

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Insider selling during the last 30 days

Here is a table of Citrix'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
Catherine Courage SVP June 13 3,458 No Yes 28,351
shares
10.9%
Nanci Caldwell Director May 29 3,334 Yes Yes 12,000 shares + 10,000 options 13.2%
Godfrey Sullivan Director May 28 10,000 Yes Yes 28,665
shares + 10,000 options
20.5%
Alvaro Monserrat SVP May 27 10,303 No Yes 101,616
shares + 46,390
options
6.5%
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There have been 27,095 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 Citrix's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 3,458 0
May 2014 30,837 0
April 2014 7,636 0
March 2014 7,890 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 832 0
October 2013 193,351 0
September 2013 27,673 0
August 2013 0 0
July 2013 3,505 0
June 2013 2,080 0
May 2013 37,061 0
April 2013 125,965 0
March 2013 63,735 0
February 2013 149,956 0
January 2013 0 0
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There have been 653,979 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

Citrix reported the first-quarter financial results on April 23 with the following highlights:

Revenue $750.8 million
Net income $55.9 million
Cash $829.3 million
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The four insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

Citrix's second-quarter guidance is as follows:

Revenue $765-$775 million
Non-GAAP EPS $0.57-$0.59
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(Source: Earnings presentation)

Competition

Citrix's competitors include Cisco (NASDAQ:CSCO), LogMeIn (NASDAQ:LOGM), and VMware (NYSE:VMW). Here is a table comparing these companies.

Company CTXS CSCO LOGM VMW
Market Cap: 10.61B 125.51B 1.12B 40.78B
Employees: 9,041 73,849 675 13,585
Qtrly Rev Growth (yoy): 0.12 -0.06 0.31 0.14
Revenue: 3.00B 47.20B 177.84M 5.38B
Gross Margin: 0.86 0.59 0.88 0.86
EBITDA: 679.44M 12.87B 16.36M 1.49B
Operating Margin: 0.14 0.22 0.04 0.22
Net Income: 335.77M 7.88B -871.00K 1.04B
EPS: 1.78 1.48 -0.04 2.40
P/E: 36.34 16.53 N/A 39.49
PEG (5 yr expected): 1.78 1.56 1.22 1.66
P/S: 3.51 2.66 6.25 7.62
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Citrix has the highest PEG ratio among these four companies.

Here is a table of these competitors' insider activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
CSCO 0 3,274,113
LOGM 0 81,876
VMW 0 19,252
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Cisco and LogMeIn have also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Citrix, and there have not been any insiders buying Citrix during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Citrix has an insider ownership of 3.14%.

Before going short Citrix, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high PEG 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.