Alexion Pharmaceuticals (NASDAQ:ALXN) develops and commercializes life-transforming therapeutic products.
Insider selling during the last 30 days
Here is a table of Alexion's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Option Exercise & Sale||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Martin Mackay||EVP||June 12||25,000||Yes||No||24,426
shares + 75,000 options
|Ann Veneman||Director||June 4||1,236||No||No||4,682
shares + 22,212
|William Keller||Director||June 5||3,425||Yes||No||12,276
|Leonard Bell||CEO||May 20-27||140,000||Yes||Yes||1,032,331
shares + 1,817,658
There have been 169,661 shares sold by insiders during the last 30 days. Leonard Bell sold his 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 Alexion's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 2,096,303 shares sold and there have been zero shares purchased by insiders since January 2013.
Alexion reported the first-quarter financial results on April 24, with the following highlights:
|GAAP net income||$159.4 million|
The four insiders sold their shares after these results.
Alexion's 2014 guidance is as follows:
Pipeline and upcoming milestones
Alexion has one approved product, Soliris.
(Source: Latest 10-Q)
Alexion's goal is to achieve up to seven new indications or product approvals through 2018.
(Source: Latest 10-Q)
|Qtrly Rev Growth (yoy):||0.67||0.07||0.15|
|PEG (5-yr. expected):||1.09||1.85||1.77|
Alexion has the highest P/S ratio among these three companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Alexion has seen intensive insider selling during the last 30 days.
There have been four different insiders selling Alexion, and there have not been any insiders buying Alexion during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Alexion has an insider ownership of 1.07%.
Before going short Alexion, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, relatively high P/E ratio, and the intensive insider-selling activity.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.