OmniVision Technologies: 3 Different Insiders Have Sold Shares This Month

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 |  About: OmniVision Technologies, Inc. (OVTI)
by: Markus Aarnio

Summary

3 insiders sold OmniVision's stock within one month.

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

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

OmniVision Technologies (NASDAQ:OVTI) engages in designing, developing, and marketing semiconductor image-sensor devices worldwide.

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Insider selling during the last 30 days

Here is a table of OmniVision'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
Howard Rhodes CTO June 5-26 32,396 Yes No 0 shares 100%
Raymond Wu President June 12 9,803 Yes & No No 666 shares + 62,580
options
13.4%
Aurelio Cisneros SVP June 2-3 59,805 Yes & No No 8,688
shares
87.3%
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There have been 102,004 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of OmniVision's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 102,004 0
May 2014 0 0
April 2014 0 0
March 2014 41,803 0
February 2014 0 0
January 2014 0 0
December 2013 2,000 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 33,545 0
June 2013 80,357 0
May 2013 0 0
April 2013 0 0
March 2013 35,000 0
February 2013 0 0
January 2013 4,000 0
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There have been 298,709 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June 2014 has seen the most insider selling.

Financials

OmniVision reported the fiscal 2014 full-year, which ended April 30, financial results on May 29 with the following highlights:

Revenue $1.5 billion
Net income $95.0 million
Cash $450.9 million
Debt $35.8 million
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The three insiders sold their shares after these results.

OmniVision has negative revenue growth currently.

Outlook

OmniVision's fiscal 2015 first-quarter guidance is as follows:

Revenue $360-$400 million
GAAP EPS $0.29-$0.49
Non-GAAP EPS $0.43-$0.63
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Competition

OmniVision's competitors include Sharp (OTCPK:SHCAY), and STMicroelectronics (NYSE:STM). Here is a table comparing these companies.

Company OVTI SHCAY STM
Market Cap: 1.24B 5.31B 8.19B
Qtrly Rev Growth (yoy): -0.02 N/A -0.09
Revenue: 1.45B 28.80B 7.90B
Gross Margin: 0.19 0.18 0.33
EBITDA: 105.56M 2.29B 817.00M
Operating Margin: 0.05 0.04 -0.01
Net Income: 95.00M 113.74M -353.00M
EPS: 1.70 0.08 -0.40
P/E: 12.97 40.78 N/A
PEG (5 yr expected): 1.13 N/A 8.20
P/S: 0.87 0.18 1.03
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OmniVision has the second-highest P/S ratio among these three companies.

Conclusion

There have been three different insiders selling OmniVision and there have not been any insiders buying OmniVision during the last 30 days. All three of these insiders decreased their holdings by more than 10% each. OmniVision has an insider ownership of 0.60%.

Before going short OmniVision, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth, 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.