Baxter International (NYSE:BAX) develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions.
Insider selling during the last 30 days
Here is a table of Baxter's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Carole Shapazian||Director||May 2||5,680||No||11,266 shares||33.5%|
|Kees Storm||Director||April 23||5,760||Yes||15,156 shares||27.5%|
|Blake Devitt||Director||April 21||4,334||No||16,541 shares||20.8%|
There have been 15,774 shares sold by insiders during the last 30 days. Kees Storm sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Baxter's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,132,185 shares sold, and there have been zero shares purchased by insiders since January, 2013.
Baxter reported the first-quarter financial results on April 17, with the following highlights:
|Net income||$556 million|
|Net debt||$6.6 billion|
The three insiders sold their shares after these results.
Baxter's guidance is as follows:
|Qtrly Rev Growth (yoy):||0.15||0.04||0.04||0.05|
|PEG (5 yr expected):||2.13||2.06||2.06||N/A|
Baxter has the highest PEG ratio among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Baxter has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Baxter, and there have not been any insiders buying Baxter during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Baxter has an insider ownership of 0.15%.
Before going short Baxter, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.