PerkinElmer: 6 Different Insiders Have Sold Shares This Month

Jun.22.14 | About: PerkinElmer, Inc. (PKI)

Summary

6 insiders sold PerkinElmer stock within one month.

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

5 of these 6 insiders decreased their holdings by more than 10%.

PerkinElmer (NYSE:PKI) provides products, services, and solutions to the diagnostics, research, environmental, industrial, and laboratory services markets worldwide.

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Insider selling during the last 30 days

Here is a table of PerkinElmer'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
James Corbett SVP June 19 57,126 Yes Yes 21,858 shares + 6,262 options 67.0%
Robert Friel CEO June 5-9 249,715 Yes Yes 532,310
shares + 1,026,135
options
13.8%
Maurice Tenney SVP June 9 5,504 Yes Yes 28,999 shares + 18,979 options 10.3%
Patrick Sullivan Director June 5 10,000 Yes No 27,294
shares + 36,561 options
13.5%
Alexis Michas Director June 2-5 15,000 No No 81,821 shares + 49,512
options
10.3%
Joel Goldberg SVP June 2 17,000 No Yes 50,859
shares + 157,324 options
7.5%
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There have been 354,345 shares sold by insiders during the last 30 days. James Corbett, Robert Friel, Maurice Tenney, and Joel Goldberg sold their 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 PerkinElmer's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 354,345 0
May 2014 5,502 0
April 2014 80,329 0
March 2014 74,690 0
February 2014 54,794 0
January 2014 0 0
December 2013 37,183 0
November 2013 112,461 0
October 2013 0 0
September 2013 147,805 0
August 2013 16,000 0
July 2013 0 0
June 2013 0 0
May 2013 12,880 0
April 2013 26,380 0
March 2013 28,215 0
February 2013 0 0
January 2013 17,179 0
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There have been 967,763 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June 2014 has seen the most insider selling.

Financials

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

Revenue $531.9 million
Net income $34.2 million
Cash $224.1 million
Debt $929.5 million
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The six insiders sold their shares after these results.

Outlook

PerkinElmer's guidance is as follows:

Q2/2014 FY2014
GAAP EPS $0.45-$0.47 $1.91-$1.95
Non-GAAP EPS $0.57-$0.59 $2.42-$2.46
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Competition

PerkinElmer's competitors include Agilent Technologies (NYSE:A), Thermo Fisher Scientific (NYSE:TMO), and Waters (NYSE:WAT). Here is a table comparing these companies.

Company PKI A TMO WAT
Market Cap: 5.33B 19.59B 47.45B 8.99B
Employees: 7,583 20,900 50,000 6,000
Qtrly Rev Growth (yoy): 0.05 -0.00 0.22 0.00
Revenue: 2.19B 6.78B 13.80B 1.90B
Gross Margin: 0.45 0.52 0.43 0.58
EBITDA: 404.08M 1.34B 2.98B 584.47M
Operating Margin: 0.13 0.14 0.14 0.26
Net Income: 169.95M 713.00M 1.48B 399.25M
EPS: 1.49 2.11 3.95 4.63
P/E: 31.53 27.81 30.12 22.90
PEG (5 yr expected): 1.97 2.08 1.37 2.14
P/S: 2.42 2.88 3.46 4.70
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PerkinElmer has the highest P/E ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
A 0 395,181
TMO 0 529,965
WAT 0 231,900
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Only PerkinElmer has seen intensive insider selling during the last 30 days.

Conclusion

There have been six different insiders selling PerkinElmer and there have not been any insiders buying PerkinElmer during the last 30 days. Five of these six insiders decreased their holdings by more than 10%. PerkinElmer has an insider ownership of 0.96%.

Before going short PerkinElmer, 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 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.