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I screened with Open Insider for insider sell transactions filed on October 3. From this list, I chose the top five stocks with insider selling in dollar terms. Here is a look at the top five stocks:

1. Google (NASDAQ:GOOG) is a global technology leader focused on improving the ways people connect with information. Google's innovations in web search and advertising have made its website a top internet property and its brand one of the most recognized in the world.


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Insider sells

  • Sergey Brin sold 83,334 shares on October 2 pursuant to a Rule 10b5-1 trading plan. Sergey Brin is the co-founder of the company.
  • John Doerr sold 10,966 shares on October 1 and 12,285 shares on September 4 pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person. John Doerr serves as a director of the company.
  • David Drummond sold 568 shares on October 1. David Drummond is Senior Vice President, Corporate Development.
  • Lawrance Page sold 27,778 shares on September 12, 27,778 shares on September 11 and 27,778 shares on September 10 pursuant to a Rule 10b5-1 trading plan. Lawrance Page currently holds 25,651,926 shares of the company. Lawrance Page is the CEO of the company.
  • Nikesh Arora sold 1,218 shares on September 12 pursuant to a Rule 10b5-1 trading plan. Nikesh Arora serves as SVP and Chief Business Officer of the company.
  • Patrick Pichette sold 1,964 shares on September 10. Patrick Pichette is SVP & Chief Financial Officer of the company.
  • Kavitark Shriram sold 72,604 shares on September 7. Kavitark Shriram serves as a director of the company.
  • John Hennessy sold 74 shares on September 4. John Hennessy serves as a director of the company.
  • Eric Schmidt sold 50,000 shares on August 29 and 103,193 shares on August 27-28. Eric Schmidt serves as Executive Chairman of Board.

Financials

The company reported the second-quarter financial results on July 19 with the following highlights:

Revenue $12.2 billion
Net income $2.8 billion
Cash $43.1 billion

My analysis

The stock has a $685 price target from the Point and Figure chart which has been met already. The stock has seen steady insider selling this year with 2,224,810 shares sold during the last 6 months. There has not been any insider buying during the last 6 months. The stock is trading at a forward P/E ratio of 15.47. The stock is currently trading very close to its all time high levels. I have a neutral bias for the stock currently.

2. C. R. Bard (NYSE:BCR) is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.


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Insider sells

Mason Morfit sold 181,543 shares on October 2-3, 110,161 shares on September 27 - October 1 and 208,296 shares on September 24-26. Mason Morfit currently controls 4,280,594 shares of the company. Mason Morfit serves as a director of the company.

Financials

The company reported the second-quarter financial results on July 25 with the following highlights:

Revenue $742.6 million
Net income $133.9 million
Cash $714.0 million

Outlook

Christopher S. Holland, Chief Financial Officer and Senior Vice President, commented on July 25 earnings call:

Moving to financial guidance. For Q3, we expect constant currency sales growth between 3% and 5%. The sales environment is certainly challenging particularly in the U.S., and we are being appropriately cautious in this environment. While our full year sales guidance remains unchanged, realistically, we are now focused on achieving growth at the lower end of that range, which as you recall called for constant currency sales growth of 4%.

From an EPS standpoint, excluding items affecting comparability, we see the third quarter in the range of $1.60 to $1.64 per share. For the full year, we still expect to achieve the full year earnings guidance range of 3% to 4% growth, which we provided to you in December, which excluded the renewal of the R&D tax credit. As a reminder, we estimate the tax credit is worth about $4 million or slightly less than 1% of incremental EPS growth.

My analysis

The stock has a bearish $78 price target from the Point and Figure chart. There have been 41 insider sell transactions and there has been one insider buy transaction this year. The stock is trading at a forward P/E ratio of 14.82. There is an opportunity for a short entry with the $78 target price and a stop loss at $110.

3. Seagate Technology (NASDAQ:STX) is the world leader in hard disc drives and storage solutions.


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Insider sells

  • Stephen Luczo sold 500,000 shares on October 1 pursuant to a Rule 10b5-1 Trading Plan. Stephen Luczo serves as the Chairman of the Board, CEO and President of the company.
  • Kenneth Massaroni sold 10,000 shares on October 1 pursuant to a Rule 10b5-1 Trading Plan. Kenneth Massaroni serves as Executive Vice President, General Counsel and Chief Administrative Officer of the company.
  • Patrick O'Malley sold 151,054 shares on August 29 and currently holds 415,328 shares of the company. Patrick O'Malley assumed the role of EVP & CFO effective August 25, 2008.
  • Robert Whitmore sold 50,000 shares on August 30 and currently holds 76,419 shares of the company. Robert Whitmore serves as Executive Vice President and CTO for Seagate.
  • David Richarz sold 50,000 shares on August 30 and currently holds 21,288 shares of the company. David Richarz serves as Executive Vice President of the company.

Financials

The company reported the financial results for the fiscal year ended June 29, 2012 with the following highlights:

Revenue $14.9 billion
Net income $2.9 billion
Cash $2.1 billion
Quarterly dividend $0.32 per share

Outlook

Stephen J. Luczo, Chairman, Chief Executive Officer and President commented during the conference call on July 30:

"For the September quarter, we expect to maintain market share, achieve revenue of approximately $4 billion, deliver gross margins exceeding 30% and have operating expenses that remain relatively flat. At this time, we believe the December quarter's addressable market will improve for the September quarter, and these conditions will put us on a path to revenues of at least $17 billion in calendar 2012 and exiting the year with margins above 30%. For fiscal 2013, assuming modest market growth, we are planning to maintain market share and deliver at least 25% annual growth in non-GAAP earnings."

My analysis

The stock has a $62 price target from the Point and Figure chart. The stock has seen steady insider selling since April 2012. There have been 40 insider sell transactions and there has not been any insider buy transactions since May 2012. The stock is trading at a P/E ratio of 4.66 and a forward P/E ratio of 4.59. The stock has a 4.26% dividend yield. I am not interested in shorting the stock based on the strong financials.

4. MetroPCS Communications (PCS) is a provider of no annual contract, unlimited wireless communications service for a flat rate. MetroPCS is the fifth largest facilities-based wireless carrier in the United States based on number of subscribers served. With Metro USA, MetroPCS customers can use their service in areas throughout the United States covering a population of over 280 million people. As of June 30, 2012, MetroPCS had approximately 9.3 million subscribers.


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Insider sells

  • Ta Associates sold 733,466 shares on October 1-3 pursuant to a Rule 10b5-1 trading plans adopted by TA Associates on February 29, 2012 and March 1, 2012.
  • J. Braxton Carter sold 10,000 shares on October 2 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on May 5, 2011. J. Braxton Carter became MetroPCS Communications' Chief Financial Officer and Vice Chairman in May 2011.

Financials

The company reported the second-quarter financial results on July 26 with the following highlights:

Revenue $1.281 billion
Net income $149 million
Cash $1.9 billion

Outlook

MetroPCS currently expects to incur capital expenditures in the range of $900 million to $1.0 billion on a consolidated basis for the year ending December 31, 2012.

News

Deutsche Telekom (NYSE:DTE) and MetroPCS Communications announced on October 3 that they have signed a definitive agreement to combine T-Mobile USA and MetroPCS. This transaction will create the leading value carrier in the U.S. wireless marketplace, which will deliver an enhanced customer experience through a wider selection of affordable products and services, deeper network coverage and a clear-cut technology path to one common LTE network. The combined company, which will retain the T-Mobile name, will have the expanded scale, spectrum and financial resources to aggressively compete with the other national U.S. wireless carriers.

Deutsche Telekom's supervisory board and MetroPCS' board of directors approved the transaction. The transaction is structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile's capital stock by issuing to Deutsche Telekom 74% of MetroPCS' common stock on a pro forma basis. Deutsche Telekom has also agreed to roll its existing intercompany debt into new $15 billion senior unsecured notes of the combined company, provide the combined company with a $500 million unsecured revolving credit facility and provide a $5.5 billion backstop commitment for certain MetroPCS third-party financing transactions.

The combined company will be a stronger competitor and will be well-positioned to drive future growth. Based on analyst consensus estimates for 2012, the combined company is expected to have approximately 42.5 million subscribers, $24.8 billion of revenue, $6.3 billion of adjusted EBITDA, $4.2 billion of capital expenditures and $2.1 billion of free cash flow (defined as EBITDA less capital expenditures) in 2012.

My analysis

The stock has a $32 price target from the Point and Figure chart. The stock has seen steady insider selling since April 2012. There have been 19 insider sell transactions and there has not been any insider buy transactions since February 2012. The stock is trading at a P/E ratio of 13.60 and a forward P/E ratio of 16.77. The company has a book value of $8.59 per share. I am not interested in shorting the stock before the $32 price target is hit.

5. LinkedIn (NYSE:LNKD) connects the world's professionals to make them more productive and successful. With more than 175 million members worldwide, including executives from every Fortune 500 company, LinkedIn is the world's largest professional network on the Internet. The company has a diversified business model with revenue coming from member subscriptions, marketing solutions and hiring solutions. Headquartered in Silicon Valley, LinkedIn also has offices across the Americas, Europe, and the Asia-Pacific.


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Insider sells

  • Jeff Weiner sold 74,584 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. The plan provides for periodic sales as part of a liquidity and diversification strategy. Jeff Weiner is the CEO of LinkedIn.
  • Dipchand Nishar sold 70,875 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. Dipchand Nishar serves as Senior Vice President, Products and User Experience.
  • Reid Hoffman sold 78,664 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. Reid Hoffman serves as a director of the company.
  • David Sze sold 13,384 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. David Sze serves as a director of the company.
  • Steven Sordello sold 50,000 shares on September 10 pursuant to a rule 10b5-1 trading plan. Steven Sordello is Senior Vice President and Chief Financial Officer of the company.
  • Stanley Meresman sold 1,000 shares on September 11-12 pursuant to a rule 10b5-1 trading plan. Stanley Meresman serves as a director of the company.

Financials

The company reported the second-quarter financial results on August 2 with the following highlights:

Revenue $228.2 million
Net income $2.8 million
Cash $617.2 million

Outlook

On August 2 LinkedIn provided guidance for the third quarter of 2012, and revised guidance upwards for the full year of 2012 on revenue, adjusted EBITDA, and stock-based compensation, while narrowing the full-year outlook for depreciation and amortization.

  • Q3 2012 Guidance: Revenue for the third quarter of 2012 is projected to range between $235 million to $240 million. The company expects adjusted EBITDA to range between $42 million and $45 million. The company expects stock-based compensation to range between $27 and $28 million and depreciation and amortization to range between $20 million and $22 million.
  • Full Year 2012 Guidance: The company has revised its expected revenue range upward to $915 million to $925 million from the prior range of $880 million to $900 million. The company has also revised upward its expected adjusted EBITDA range to $185 million to $190 million from the prior range of $170 million to $175 million. The company now expects stock-based compensation to range between $85 million and $95 million, while the range for depreciation and amortization is now $75 million to $80 million.

My analysis

The stock has a $153 price target from the Point and Figure chart. There have been 45 insider sell transactions and there has not been any insider buy transactions since July 2012. The stock is trading at a forward P/E ratio of 97.34. I am not interested in shorting the stock before the $153 target price is hit.

Source: Top 5 Stocks With Insider Sells Filed On October 3 To Consider