Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

I screened with Open Insider for insider sell transactions filed on September 21. I then checked with Stock Charts if the stocks had bearish Point and Figure counts. From this list, I chose the top 5 stocks with insider selling in dollar terms. Here is a look at the top 5 stocks:

1. Garmin (NASDAQ:GRMN) and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 - most of which are enabled by GPS technology. Garmin's products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, and OEM applications. Garmin is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom.

Click to enlarge

Insider sells

Min Kao sold 113,476 shares on September 19-21, 350,000 shares on September 14-17, 466,000 shares on September 12-13, 150,300 shares on September 7-10, 474,000 shares on September 4-6 and 300,000 shares on August 30-31. All these sales were pursuant to a Rule 10b5-1 Stock Trading Plans adopted on August 28, 2012 by family trusts of which the reporting person and his spouse are the trustees. Dr. Min Kao co-founded Garmin Corporation with Gary Burrell in October 1989 to integrate Global Positioning System [GPS] technology into navigation devices for multiple markets.

Financials

The company reported the second-quarter financial results on August 1 with the following highlights:

Revenue$718 million
Net income (Pro Forma)$192.9 million
Cash$1.37 billion

Outlook

The company updated its 2012 guidance on August 1. The new 2012 guidance is:

Revenue$2.75 billion to $2.80 billion
Gross Margin52-53%
Operating Margin21-22%
EPS (Pro Forma)$2.70 - $2.85

My analysis

The stock has a $21 price target from the Point and Figure chart. There have been 50 insider sell transactions since December 2010. There has not been any insider buying since at least December 2010. The stock is currently trading at a forward P/E of 14.41. There is an opportunity for a short entry with a target price at $21 and a stop loss at $50.

2. Intuit (NASDAQ:INTU) is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks, Quicken and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries and Lacerte are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations.

Insider sells

  • Christopher Brody sold 47,669 shares on September 19-20 and 142,331 shares on September 17-18. Christopher Brody has been a director of Intuit since December 1993.
  • R. Neil Williams sold 28,000 shares on September 20 and currently holds 4,548 shares of the company. R. Neil Williams became Intuit's senior vice president and chief financial officer in January 2008.
  • Scott Cook sold 200,000 shares on August 23 pursuant to a 10b5-1 trading plan adopted by the reporting person. Scott Cook co-founded Intuit Inc. in 1983 and now serves as the chairman of the Executive Committee.
  • Kiran Patel sold 175,000 shares on September 10 and 90,000 shares on August 23 pursuant to a 10b5-1 trading plan adopted by the reporting person. Kiran Patel is executive vice president and general manager of Intuit's small business group.
  • Laura Fennell sold 12,393 shares on August 23 pursuant to a 10b5-1 trading plan adopted by the reporting person. Laura Fennell is senior vice president, general counsel and secretary, leading Intuit's legal, corporate affairs, privacy, information and physical security teams.

Financials

The company reported the fourth-quarter fiscal year 2012, which ended July 31, results on August 21 with the following highlights:

Revenue$651 million
Net income$4 million
Cash$819 million
Quarterly dividend$0.17 per share

Outlook

Intuit announced guidance for fiscal year 2013, which ends July 31, and expects:

  • Revenue of $4.55 billion to $4.65 billion, growth of 10 to 12 percent.
  • GAAP operating income of $1.315 billion to $1.345 billion, growth of 12 to 14 percent.
  • Non-GAAP operating income of $1.57 billion to $1.60 billion, growth of 12 to 14 percent.
  • GAAP diluted EPS of $2.76 to $2.82, growth of 6 to 8 percent.
  • Non-GAAP diluted EPS of $3.32 to $3.38, growth of 12 to 14 percent.

For the first quarter of fiscal 2013, Intuit expects:

  • Revenue of $630 million to $640 million, growth of 10 to 11 percent.
  • GAAP operating loss of $85 million to $90 million, compared to a loss of $84 million in the year-ago quarter.
  • Non-GAAP operating loss of $20 million to $25 million, compared to a loss of $20 million in the year-ago quarter.
  • GAAP net loss per share of $0.20 to $0.21, compared to a net loss per share of $0.21 in the year-ago quarter.
  • Non-GAAP net loss per share of $0.06 to $0.07, compared to a net loss per share of $0.08 in the year-ago quarter.

My analysis

The stock has a $46 bearish price objective from the Point and Figure chart. There have been 28 insider sell transactions since December 2011. There has not been any insider buying since December 2011. The stock is trading at a forward P/E ratio of 15.57 currently. There is an opportunity for a short entry with a $46 price target and stop loss at $62.

3. Bally Technologies (NYSE:BYI) designs, manufactures, operates, and distributes advanced gaming devices, systems and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide-area progressives, interactive and mobile applications, and Class II, lottery, and central-determination games and platforms. Bally also offers an array of casino management, slot accounting, bonusing, cashless and table management solutions.

Insider sells

Richard Haddrill sold 40,000 shares on September 19-21 pursuant to a Rule 10b5-1 Trading Agreement. Richard Haddrill has been CEO of Bally Technologies since Oct. 1, 2004. He has served on its Board of Directors since April 2003.

Financials

The company reported the fiscal year 2012 (ending June 30) financial results on August 8 with the following highlights:

Revenue$879.8 million
Net income$101.1 million
Cash$32.7 million

Outlook

The company initiated fiscal 2013 guidance for Diluted EPS of $2.95 to $3.30. This guidance anticipates continued year-over-year growth in each of game sales, gaming operations, and system revenues. The company currently anticipates an increase in the placement of its premium games, particularly WAP, an increase in the number of gaming devices sold with continued margin improvements on game sales, and continued growth in its systems business.

My analysis

The stock has a bearish $35 price target from the Point and Figure chart. There have been 30 insider sell transactions since January 2011. There has not been any insider buying since at least January 2011. The stock is trading at a forward P/E ratio of 13.44. There is an opportunity for a short entry with a $35 price target and a stop loss at $50. The stock made an all time high of $54 in 2007.

4. The Advisory Board Company (NASDAQ:ABCO) is a global research, technology, and consulting firm partnering with 150,000 leaders in 3,700 organizations across health care and higher education. Through its innovative membership model, the company collaborates with executives and their teams to elevate performance and solve their most pressing challenges. The company provides strategic guidance, actionable insights, web-based software solutions, and comprehensive implementation and management services.

Insider sells

  • Robert Musslewhite sold 10,000 shares on September 20 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person. Robert Musslewhite serves as chief executive officer of The Advisory Board Company.
  • David Felsenthal sold 13,048 shares on September 19 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person. David Felsenthal serves as president of The Advisory Board Company.

Financials

The company reported the first-quarter of fiscal year 2013 (ending June 30) financial results on July 31 with the following highlights:

Revenue$104.1 million
Net income$3.8 million
Cash$45.2 million

Outlook

The company is updating its revenue guidance for calendar year 2012 to a range of approximately $426 million to $432 million, up from a range of $420 million to $430 million. The company is also updating its guidance for calendar year 2012 adjusted EBITDA to a range of approximately $79 million to $82 million, up from a range of $77 million to $82 million. For calendar year 2012, the company is updating its guidance for non-GAAP earnings per diluted share to a range of approximately $1.20 to $1.25, from a range of $1.20 to $1.30 adjusted for the effects of the company's two-for-one stock split effective June 18, 2012.

My analysis

The stock has a bearish $28 price target from the Point and Figure chart. There have been 53 insider sell transactions since May 2012. There has not been any insider buying since at least May 2012. The stock is trading at a forward P/E ratio of 32.22. There is an opportunity for a short entry with a $28 target price and a stop loss at $52 which is the all time high for the stock.

5. ServiceSource (NASDAQ:SREV) is the global leader in service revenue management, partnering with technology-based companies to optimize maintenance, support and subscription revenue streams, while also improving customer relationships and loyalty. ServiceSource helps customers increase service revenue contract renewal rates, on average, by over 15 percentage points and, in some cases, up to 44 percentage points.

ServiceSource delivers these results via a cloud-based solution, combining its Service Revenue Performance Suite of applications with dedicated service sales teams, leveraging a proprietary Service Revenue Intelligence Platform of transaction data, benchmarks and best practices. ServiceSource offers its service revenue management solution on a unique pay-for-performance business model that enables a success-driven, shared-risk partnership.

The company is headquartered in San Francisco, and manages service revenue performance for customers across the globe in more than 35 languages.

(click to enlarge)

Insider sells

  • Jeffrey Bizzack sold 40,000 shares on September 20 pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on December 9, 2011. Jeffrey Bizzack joined ServiceSource as President in April 2009.
  • Natalie McCullough sold 20,000 shares on September 19-20 pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on June 9, 2011. Natalie McCullough serves as a Chief Strategy Officer of the company.

Financials

The company reported the second-quarter financial results on July 31 with the following highlights:

Revenue$59.7 million
Non-GAAP net income$0.6 million
Cash$114.2 million

Outlook

The company provided the following commentary on its expected business outlook:

  • Third quarter 2012: The company expects revenue for the third quarter of 2012 to be in the range of $57.5 to $59.5 million, adjusted EBITDA of approximately $0.5 to $1.5 million, GAAP net loss of $7.5 to $8.5 million and non-GAAP net loss per share to be between breakeven to a loss of $0.02 per share.
  • Full year 2012: The company reiterated its guidance for 2012 revenue of $246 to $249 million, adjusted EBITDA between $16 to $18 million and non-GAAP net income per diluted share in the range of $0.05 to $0.07. Reflecting the one-time, non-cash charge related to the deferred tax assets and the revised outlook on GAAP taxes for the year, the company has revised its guidance for GAAP net loss to range from $46.5 to $48.5 million.

My analysis

The stock has a bearish $6 price target from the Point and Figure chart. There have been 54 insider sell transactions since February 2012. There have only been three insider buy transactions since February 2012. The stock is currently trading at a forward P/E ratio of 79.50. There is an opportunity for a short entry with a $6 target price and a stop loss at $14.

Source: Top 5 Stocks With Insider Sells Filed On September 21 To Consider