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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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Matthew KaplanSVPJune 127,201Yes & NoYes1,079
shares + 15,000 options
30.9%
William WagnerCOOJune 115,006NoYes10,014
shares
33.3%
James KelliherCFOJune 10-1224,000Yes & NoYes17,655 shares + 102,500 options16.6%
Gregory HughesDirectorJune 43,150NoNo3,100 shares + 60,000 options4.8%
Michael SimonCEOMay 27-2830,000Yes & NoYes660,702 shares + 449,469 options2.6%
Edward HerdiechSVPMay 282,023NoYes0 shares + 18,835 options9.7%
Edwin GillisDirectorMay 273,750YesYes48,126
shares
7.2%
Lawrence D'AngeloSVPMay 286,746NoYes0 shares + 16,500 options29.0%

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.

MonthInsider selling / sharesInsider buying / shares
June 201439,3570
May 2014121,2690
April 201400
March 201427,0000
February 201455,0530
January 201400
December 201329,0000
November 201356,3110
October 201300
September 201311,2750
August 20133,4210
July 20137,1700
June 201300
May 201300
April 201300
March 201304,400
February 2013027,900
January 201300

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

The eight insiders sold their shares after these results.

Outlook

LogMeIn's guidance is as follows:

Q2/2014FY2014
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

Competition

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

CompanyLOGMCSCOCTXSMSFT
Market Cap:1.14B127.20B10.64B344.29B
Employees:67573,8499,04199,000
Qtrly Rev Growth (yoy):0.31-0.060.12-0.00
Revenue:177.84M47.20B3.00B83.35B
Gross Margin:0.880.590.860.70
EBITDA:16.36M12.87B679.44M32.13B
Operating Margin:0.040.220.140.34
Net Income:-871.00K7.88B335.77M22.43B
EPS:-0.041.481.782.67
P/E:N/A16.7536.4415.62
PEG (5 yr expected):1.261.571.802.28
P/S:6.372.683.554.11

LogMeIn has the highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
CSCO03,631,273
CTXS049,821
MSFT2,950,50140,139,400

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.

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