We present here four noteworthy insider buys and six noteworthy insider sells in the healthcare, consumer and retail sectors from Wednesday and Thursday's (April 25th and 26th, 2012) over 350 separate SEC Form 4 (insider trading) filings, as part of our daily and weekly coverage of insider trades. The filings are noteworthy based on the dollar amount sold, the number of insiders buying or selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock (for more info on how to interpret insider trades, please refer to the end of this article):
The Hershey Company (HSY): Hershey, one of the world's most well-recognized chocolate brands, is a leading snack food company that manufactures chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. On Thursday, two insiders filed SEC Forms 4 indicating that they exercised options and sold the resulting 78,318 shares for $5.1 million, pursuant to 10b5-1 plans. Of these, 48,000 shares were sold by CEO John Bilbrey and the remaining 30,318 shares were sold by SVP Michele Buck. Insider selling has been intense at Hershey recently, with 0.19 million shares sold in the last month; in comparison, insiders sold 1.1 million shares in the last year.
Hershey reported an outstanding Q1 (March) report just earlier this week on Tuesday, beating analyst revenue ($1.73 billion v/s $1.66 billion) and earnings estimates (96c v/s 81c), and raising FY 2012 guidance. The stock is up about 6% since the report, approaching its all-time highs in the $67 range, and it trades at 19 forward P/E and 17.7 P/B compared to averages of 18.3 and 6.3 for its peers in the confectionery foods group.
Kimberly-Clark Corp. (KMB): KMB manufactures disposable diapers, baby wipes, facial and bathroom tissue, paper towels and various commercial hygiene products. On Wednesday, Group President Robert Abernathy filed SEC Form 4 indicating that he exercised options to acquire 98,203 shares, and sold those and an additional 24,267 shares for $9.4 million. In comparison, insiders sold 1.04 million shares in the past year.
KMB reported a good Q1 (March) report last Friday, beating analyst revenue ($5.24 billion v/s $5.05 billion) and earnings estimates ($1.24 v/s $1.17), and guiding FY 2012 EPS in-line. Its shares are up about 5% since the report, currently trading at all-time highs and at 14-15 forward P/E and 5.5 P/B compared to averages of 11.1 and 3.2 for its peers in the consumer staples group.
On top of these, some additional large insider sales on Wednesday and Thursday include:
- a $2.2 million sale by EVP Susan Alexander at Biogen Idec Inc. (BIIB), that is engaged in the research, development and commercialization of therapies for the treatment of multiple sclerosis, cancer and auto-inflammatory diseases;
- a $2.0 million sale by Chief Scientific Officer Joseph Chang at Nu Skin Enterprises Inc. (NUS), a network marketer of anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex brands;
- a $1.3 million sale by two insiders at Seattle Genetics Inc. (SGEN), that is a biotech company focused on the development of monoclonal antibody-based therapeutics for the treatment of cancer and autoimmune diseases; and
- a $1.3 million sale by two insiders at eBay Inc. (EBAY), that is a leading provider of online marketplaces and electronic payment services via ebay.com and paypal.com.
Furthermore, insiders also reported noteworthy buys on Wednesday and Thursday in:
- Netflix Inc. (NFLX), that is a provider of subscription based Internet services for watching online movies and TV shows in the U.S. and internationally via Netflix.com, and a service to deliver DVDs and Blu-ray discs to their homes for subscribers in the U.S., in which Director Richard Barton purchased 6,000 shares for $0.5 million, the only insider purchase at least in the last two years;
- Philip Morris International Inc. (PM), a manufacturer of cigarettes sold worldwide under the Marlboro, LM, Parliament, Virginia Slims and other brands, in which Director Sergio Marchionne purchased 1,000 shares for $86,830, in comparison to 7,500 shares purchased by insiders in the past year;
- Southwest Airlines Co. (LUV), that provides predominantly short-haul, high-frequency, point-to-point, low-fare domestic airline service to 69 cities in 35 states, in which Director Douglas Brooks purchased 5,000 shares for $39,500, the only insider purchase at least in the last two years; and
- MusclePharm Corp. (MSLP.OB), engaged in the development, manufacture, and marketing of nutritional supplements for athletes, in which CEO Brad Pyatt purchased 1.16 million shares for $21,945.
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.