Pioneer Natural Resources: 12 Different Insiders Have Sold Shares This Month

Jun.30.14 | About: Pioneer Natural (PXD)

Summary

12 insiders sold Pioneer stock within one month.

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

4 of these 12 insiders decreased their holdings by more than 10%.

Pioneer Natural Resources Company (NYSE:PXD) operates as an independent oil and gas exploration and production company in the United States.
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Insider selling during the last 30 days

Here is a table of Pioneer'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
Timothy Dove COO May 29-June 25 24,000 Yes No 282,864
shares + 55,238 options
6.6%
Andrew Cates Director June 23 2,000 No No 19,946 shares 9.1%
Mark Berg EVP June 6-20 4,000 No No 73,322 shares + 5,607
options
4.8%
Richard Dealy CFO May 30-June 18 12,466 No No 188,619 shares + 4,213 options 6.1%
Jim Watson Director June 18 1,000 No No 6,553
shares
13.2%
Edison Buchanan Director June 13 600 No No 25,972
shares
2.3%
Frank Risch Director May 29-June 13 2,000 No No 12,695
shares
13.6%
Danny Kellum EVP June 9-12 12,000 No No 42,834 shares 21.9%
William Hannes EVP June 11 11,246 Yes No 77,921 shares 12.6%
Scott Sheffield CEO June 9 20,000 No No 690,114 shares 2.8%
Kenneth Thompson Director June 10 500 No No 7,070
shares
6.6%
Charles Ramsey Director June 2 619 No No 15,810 shares 3.8%
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There have been 90,431 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

Month Insider selling / shares Insider buying / shares
June 2014 74,218 0
May 2014 53,762 0
April 2014 0 0
March 2014 89,336 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 2,400 500
October 2013 0 0
September 2013 88,460 0
August 2013 0 0
July 2013 0 0
June 2013 100,438 0
May 2013 75,116 0
April 2013 0 0
March 2013 93,698 0
February 2013 0 27
January 2013 0 0
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There have been 577,428 shares sold and there have been 527 shares purchased by insiders since January 2013.

Financials

Pioneer reported the first-quarter financial results on May 6 with the following highlights:

Revenue $963 million
Net income $123 million
Cash $257 million
Debt $2.7 billion
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The 12 insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

Pioneer's second-quarter guidance is as follows:

Daily production 173-178 MBOEPD
Production cost $13.50-$15.50 per BOE
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Click to enlarge

(Source: Earnings presentation)

Competition

Pioneer's competitors include Apache (NYSE:APA), EOG Resources (NYSE:EOG), and Devon Energy (NYSE:DVN). Here is a table comparing these companies.

Company PXD APA EOG DVN
Market Cap: 32.37B 38.48B 63.31B 32.43B
Employees: 4,350 5,342 2,800 5,900
Qtrly Rev Growth (yoy): 0.36 -0.09 0.28 0.77
Revenue: 3.76B 15.86B 15.39B 12.34B
Gross Margin: 0.66 0.81 0.61 0.58
EBITDA: 1.93B 11.29B 7.93B 8.13B
Operating Margin: -0.14 0.36 0.25 0.26
Net Income: -324.94M 2.18B 2.36B 1.64B
EPS: -5.85 4.34 4.32 4.07
P/E: N/A 22.97 26.81 19.54
PEG (5 yr expected): 2.29 471.67 2.25 0.96
P/S: 8.68 2.43 4.10 2.60
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Pioneer has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
APA 0 17,619
EOG 0 18,135
DVN 0 3,500
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Apache has also seen intensive insider selling during the last 30 days.

Conclusion

There have been 12 different insiders selling Pioneer and there have not been any insiders buying Pioneer during the last 30 days. Four of these 12 insiders decreased their holdings by more than 10%. Pioneer has an insider ownership of 1.09%.

Before going short Pioneer, 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.