Seagate Technology (NASDAQ:STX) designs, manufactures, and sells electronic data storage products.
Insider selling during the last 30 days
Here is a table of Seagate's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Douglas Dehaan||GM||May 6||15,490||No||18,802 shares + 37,777 options||21.5%|
|Lydia Marshall||Director||May 6||10,626||No||26,678 shares||28.5%|
|David Morton||SVP||May 2||2,803||No||22,250 shares + 19,569 options||6.3%|
There have been 28,919 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Seagate's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 35,457,738 shares sold, and there have been 1,742 shares purchased by insiders since January 2013.
Seagate reported the fiscal 2014 third-quarter, which ended March 28, financial results on April 29 with the following highlights:
|Net income||$395 million|
The three insiders sold their shares after these results.
Seagate has negative revenue growth currently.
Seagate's fiscal 2014 fourth-quarter guidance is as follows:
|Operating expenses||$505 million|
|Non-GAAP gross margin||~28%|
|Qtrly Rev Growth (yoy):||-0.03||-0.02||0.14|
|PEG (5 yr expected):||1.32||6.62||N/A|
Seagate has the weakest revenue growth among these three companies.
There have been three different insiders selling Seagate, and there have not been any insiders buying Seagate during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Seagate has an insider ownership of 13.70%.
Before going short Seagate, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth, and 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.
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