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.
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
|William Wagner||COO||June 11||5,006||No||Yes||10,014
|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
|Lawrence D'Angelo||SVP||May 28||6,746||No||Yes||0 shares + 16,500 options||29.0%|
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|
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.
LogMeIn reported the first-quarter financial results on April 29 with the following highlights:
|GAAP net income||$1.0 million|
The eight insiders sold their shares after these results.
LogMeIn's guidance is as follows:
|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|
|Qtrly Rev Growth (yoy):||0.31||-0.06||0.12||-0.00|
|PEG (5 yr expected):||1.26||1.57||1.80||2.28|
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|
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.