Analog Devices (NASDAQ:ADI) is engaged in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits for use in industrial, automotive, consumer, and communication markets worldwide.
Insider selling during the last 30 days
Here is a table of Analog Devices' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Option Exercise & Sale||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Grant Saviers||Director||June 18-24||18,000||Yes||No||14,655
shares + 81,890 options
|Richard Meaney||VP||June 19-20||50,000||Yes||No||16,941
shares + 67,367 options
|Kenton Sicchitano||Director||June 20||18,000||Yes||No||12,655
shares + 96,890 options
|Ray Stata||Director||June 17||50,000||No||No||2,015,187
shares + 13,800 options
|Margaret Seif||VP||June 16||4,000||Yes||Yes||10,368
shares + 61,788 options
|David Zinsner||CFO||June 2||5,140||Yes||Yes||29,504
shares + 114,930 options
|Vincent Roche||CEO||June 2||8,000||Yes||Yes||16,723
shares + 197,822 options
There have been 153,140 shares sold by insiders during the last 30 days. Margaret Seif, David Zinsner, and Vincent Roche 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 Analog Devices' insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,844,703 shares sold and there have been zero shares purchased by insiders since January 2013.
Analog Devices reported the fiscal 2014 second-quarter, which ended May 3, financial results on May 20 with the following highlights:
|Net income||$187.4 million|
The seven insiders sold their shares after these results.
Analog Devices' fiscal 2014 third-quarter guidance is as follows:
|Revenue growth||1%-5% sequentially|
|Qtrly Rev Growth (yoy):||0.05||0.15||-0.09||0.03|
|PEG (5 yr expected):||1.98||0.43||8.49||1.96|
Analog Devices has the highest P/S ratio among these four companies.
There have been seven different insiders selling Analog Devices and there have not been any insiders buying Analog Devices during the last 30 days. Three of these seven insiders decreased their holdings by more than 10%. Analog Devices has an insider ownership of 0.99%.
Before going short Analog Devices, 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.