Analog Devices: 7 Different Insiders Have Sold Shares This Month

| About: Analog Devices (ADI)

Summary

7 insiders sold Analog Devices stock within one month.

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

3 of these 7 insiders decreased their holdings by more than 10%.

Analog Devices (NYSE: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.

Click to enlarge

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
15.7%
Richard Meaney VP June 19-20 50,000 Yes No 16,941
shares + 67,367 options
37.2%
Kenton Sicchitano Director June 20 18,000 Yes No 12,655
shares + 96,890 options
14.1%
Ray Stata Director June 17 50,000 No No 2,015,187
shares + 13,800 options
2.4%
Margaret Seif VP June 16 4,000 Yes Yes 10,368
shares + 61,788 options
5.3%
David Zinsner CFO June 2 5,140 Yes Yes 29,504
shares + 114,930 options
3.4%
Vincent Roche CEO June 2 8,000 Yes Yes 16,723
shares + 197,822 options
3.6%
Click to enlarge

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
June 2014 153,140 0
May 2014 17,140 0
April 2014 17,140 0
March 2014 252,849 0
February 2014 179,082 0
January 2014 22,000 0
December 2013 414,265 0
November 2013 5,000 0
October 2013 135,000 0
September 2013 125,110 0
August 2013 17,360 0
July 2013 23,517 0
June 2013 156,500 0
May 2013 51,778 0
April 2013 8,715 0
March 2013 105,442 0
February 2013 60,782 0
January 2013 99,883 0
Click to enlarge

There have been 1,844,703 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

Analog Devices reported the fiscal 2014 second-quarter, which ended May 3, financial results on May 20 with the following highlights:

Revenue $694.5 million
Net income $187.4 million
Cash $4.8 billion
Debt $872.5 million
Click to enlarge

The seven insiders sold their shares after these results.

Outlook

Analog Devices' fiscal 2014 third-quarter guidance is as follows:

Revenue growth 1%-5% sequentially
EPS $0.60-$0.64
Click to enlarge

Competition

Analog Devices' competitors include NXP Semiconductors (NASDAQ:NXPI), STMicroelectronics (NYSE:STM), and Texas Instruments (NYSE:TXN). Here is a table comparing these companies.

Company ADI NXPI STM TXN
Market Cap: 16.86B 16.21B 8.18B 51.72B
Employees: 9,100 26,214 45,390 32,209
Qtrly Rev Growth (yoy): 0.05 0.15 -0.09 0.03
Revenue: 2.68B 4.98B 7.90B 12.30B
Gross Margin: 0.65 0.46 0.33 0.54
EBITDA: 937.27M 1.22B 817.00M 4.44B
Operating Margin: 0.31 0.15 -0.01 0.26
Net Income: 717.81M 472.00M -353.00M 2.25B
EPS: 2.26 1.84 -0.40 2.03
P/E: 23.76 35.01 N/A 23.57
PEG (5 yr expected): 1.98 0.43 8.49 1.96
P/S: 6.33 3.26 1.03 4.19
Click to enlarge

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

Conclusion

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.