LogMeIn: 8 Different Insiders Have Sold Shares During The Last 30 Days

| About: LogMein, Inc. (LOGM)

Summary

8 insiders sold LogMeIn stock within one month.

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

4 of these 8 insiders decreased their holdings by more than 10%.

LogMeIn (NASDAQ:LOGM) provides cloud-based collaboration, IT management, and customer service offerings to address the multi-device security, management, and accessibility requirements of the new mobile workplace in the United States, the United Kingdom, and internationally.

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Insider selling during the last 30 days

Here is a table of LogMeIn'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
Matthew Kaplan SVP June 12 7,201 Yes & No Yes 1,079
shares + 15,000 options
30.9%
William Wagner COO June 11 5,006 No Yes 10,014
shares
33.3%
James Kelliher CFO June 10-12 24,000 Yes & No Yes 17,655 shares + 102,500 options 16.6%
Gregory Hughes Director June 4 3,150 No No 3,100 shares + 60,000 options 4.8%
Michael Simon CEO May 27-28 30,000 Yes & No Yes 660,702 shares + 449,469 options 2.6%
Edward Herdiech SVP May 28 2,023 No Yes 0 shares + 18,835 options 9.7%
Edwin Gillis Director May 27 3,750 Yes Yes 48,126
shares
7.2%
Lawrence D'Angelo SVP May 28 6,746 No Yes 0 shares + 16,500 options 29.0%
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There have been 81,876 shares sold by insiders during the last 30 days. Matthew Kaplan, William Wagner, James Kelliher, Michael Simon, Edward Herdiech, Edwin Gillis, and Lawrence D'Angelo 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 LogMeIn's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 39,357 0
May 2014 121,269 0
April 2014 0 0
March 2014 27,000 0
February 2014 55,053 0
January 2014 0 0
December 2013 29,000 0
November 2013 56,311 0
October 2013 0 0
September 2013 11,275 0
August 2013 3,421 0
July 2013 7,170 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 4,400
February 2013 0 27,900
January 2013 0 0
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There have been 349,856 shares sold and there have been 32,300 shares purchased by insiders since January 2013. The month of May 2014 has seen the most insider selling.

Financials

LogMeIn reported the first-quarter financial results on April 29 with the following highlights:

Revenue $49.0 million
GAAP net income $1.0 million
Cash $204.0 million
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The eight insiders sold their shares after these results.

Outlook

LogMeIn's guidance is as follows:

Q2/2014 FY2014
Revenue $52.2-$52.7 million $209.0-$212.0 million
Adjusted EBITDA $10.4-$10.9 million $44.0-$47.0 million
Non-GAAP net income $5.7-$6.0 million $24.0-$26.0 million
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Competition

LogMeIn's competitors include Cisco (NASDAQ:CSCO), Citrix (NASDAQ:CTXS), and Microsoft (NASDAQ:MSFT). Here is a table comparing these companies.

Company LOGM CSCO CTXS MSFT
Market Cap: 1.14B 127.20B 10.64B 344.29B
Employees: 675 73,849 9,041 99,000
Qtrly Rev Growth (yoy): 0.31 -0.06 0.12 -0.00
Revenue: 177.84M 47.20B 3.00B 83.35B
Gross Margin: 0.88 0.59 0.86 0.70
EBITDA: 16.36M 12.87B 679.44M 32.13B
Operating Margin: 0.04 0.22 0.14 0.34
Net Income: -871.00K 7.88B 335.77M 22.43B
EPS: -0.04 1.48 1.78 2.67
P/E: N/A 16.75 36.44 15.62
PEG (5 yr expected): 1.26 1.57 1.80 2.28
P/S: 6.37 2.68 3.55 4.11
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LogMeIn has the highest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
CSCO 0 3,631,273
CTXS 0 49,821
MSFT 2,950,501 40,139,400
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Cisco and Citrix have also seen intensive insider selling during the last 30 days.

Conclusion

There have been eight different insiders selling LogMeIn and there have not been any insiders buying LogMeIn during the last 30 days. Four of these eight insiders decreased their holdings by more than 10%. LogMeIn has an insider ownership of 5.97%.

Before going short LogMeIn, 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/S 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.