Adobe Systems Incorporated (NASDAQ:ADBE) operates as a diversified software company worldwide.
Insider selling during the last 30 days
Here is a table of Adobe'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|
|Richard Rowley||VP||June 24||13,835||Yes & No||No||0 shares||100%|
|Donna Morris||SVP||June 23||35,618||Yes & No||No||85,827
|Bryan Lamkin||SVP||June 23||5,392||No||No||5,392
|David Wadhwani||SVP||June 24||5,599||Yes||No||25,000 shares||18.3%|
|James Daley||Director||June 19||5,000||Yes||No||20,674
shares + 74,704 options
|Matthew Thompson||EVP||June 19||23,917||Yes||No||50,875 shares||32.0%|
|Shantanu Narayen||CEO||June 19||439,000||Yes||Yes||258,737
shares + 622,633 options
There have been 528,361 shares sold by insiders during the last 30 days. Shantanu Narayen sold his 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 Adobe's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 10,397,975 shares sold and there have been 5,000 shares purchased by insiders since January 2013.
Adobe reported the fiscal 2014 second-quarter, which ended May 30, financial results on June 17 with the following highlights:
|Net income||$88.5 million|
The stock spiked up $6 after these results and the seven insiders sold their shares after the spike.
Adobe's revenues peaked in 2012.
Adobe's fiscal 2014 third-quarter guidance is as follows:
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||0.06||0.05||-0.00||0.04|
|PEG (5 yr expected):||4.81||1.10||2.28||5.76|
Adobe 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|
Autodesk has also seen intensive insider selling during the last 30 days.
There have been seven different insiders selling Adobe and there have not been any insiders buying Adobe during the last 30 days. Six of these seven insiders decreased their holdings by more than 10%. Adobe has an insider ownership of 0.38%.
Before going short Adobe, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, high P/E 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.