Weekly Insider Trading, September 10

|
Includes: ADC, BCO, QRTEA, RRD
by: G-Stock
Summary

Qurate Retail - stock has come down, first insider purchase (by CEO) in many years.

Agree Realty - solid fundamental and technical picture, and insiders confirming the trend.

Brinks - Mixed picture, both fundamentally and transactionally, but worth a bounce play.

R. R. Donnelley & Sons Co - weak fundamentals and technicals, but insiders are making the first purchases in a long time. Turnaround play.

Introduction to Weekly Insider Trading (for new readers)

Weekly Insider Trading from G-stock is the result of quantitative screening of insider trading, coupled with qualitative checks to produce a list of companies with the most interesting cues. The screening process starts by looking at number and value of insider trades, if spread across insiders, their historic behavior and the value of current trade in comparison to existing shares owned. This produces a list of the most interesting companies to look at. The next step is to filter based on type of trades and the person trading. Purchases in a new issuance of stock or exercise of options are generally considered of lesser value than an open market purchase. Generally, the more spread across insiders, the better should be the signaling value. Within the insider category, Officers are highest ranked, followed by directors and >10% owners. That said, nothing is binary and continuous purchases of a >10% owner can be very supportive for price just like buybacks are. So, to summarize, simply looking at transaction values is not enough. Most of the time, insider transactions need to be put in context, quantitatively and qualitatively, only then can such transactions be of value for portfolio decisions.

Please note that the companies presented and information given should not be interpreted as a full picture view, or some fundamental analysis of the company. I am merely identifying insider trading patterns and looking at some basic info related to those companies, and if available adding analysis done in other articles directly linked to the company, to better score the value of such insider transactions. I strongly encourage everyone to do their own fundamental analysis of each company before investing.

Types of Insider transaction setup (of course any position is contingent on other screening factors as well)

  1. Market opportunistic with positive trend, insiders increasing holdings in a correction in a stock with general uptrend (here I would buy and hold for some time, 1-6 months)
  2. Market opportunistic with no trend, insiders increasing holdings in a correction in a stock with a sideways trend (here I would buy and sell on a reversal to mean or within 3 months if the stock is not moving)
  3. Turnaround bet, insiders increasing holdings in a stock in a sideways or downwards trend (higher risk, smaller position, event driven holding, max 6 months, smaller size).

Overall Weekly Market Outlook

As for the overall market direction, in the most recent article (S&P then at 2835), I wrote that there would be volatility and to keep some cash on hand. Just a day after, S&P dropped to 2800 and then reversed sharply higher (S&P currently trades around 2880). This contrast sharply to European markets of which many are trading around year lows. So, while my reference usually is to the S&P, with a more global portfolio, my outlook was not too off the mark.

I also mentioned the Fed, highlighting that we need to see some dovish talk from them before we can leave rate increase concerns and emerging market concerns behind us.

I believe we got a start of that talk (on Aug 24), albeit from a non-voting member (Bullard), but it was a very clear statement with regards to the yield curve, and I think it matters to markets. But we need more confirmation of this, that the Fed is watching the yield curve and confirmation that there will not be gradual rate hikes in 2019/ i.e. a more neutral stance.

So, where does this leave us? In my previous article, I was looking for a buying opportunity dip down towards 2700-2750. That is no longer my main scenario. Why?

  • Europe has already completed a full correction, now trading around 2017-2018 lows. I believe it would require disastrous economic news for us to break down below those levels.
  • Into year end, I am looking for Fed to soften their language a bit and with that, I do not think we will see S&P below 2800 for the rest of the year.

While this week might provide more volatility, I do believe in buying those dips into a rally next week, which is OPEX week.

Update of open and closed positions

This article's insider trading stocks

I have looked at the SEC reported insider transactions over the last two months (report date). The final list includes companies based on the insider activity rank, which might or might not lead to an immediate action.

Company

Ticker

Insider activity

Longer term insider score

Company Fundamentals

Chart Technicals

Type of Setup

Action

Qurate Retail

QRTEA

+

-

+

0

No trend

Buy

Agree Realty Corp

ADC

+

+

+

+

Positive trend

Buy

Brinks Co

BCO

0

0

0

0

No trend

Buy

RR Donnelley & Sons Co

RRD

+

+

-

-

Turnaround

Buy (small)

Qurate Retail (QRTEA)

Summary

Qurate Retail owns interests in companies primarily engaged in video and online commerce industries, clearly an area of intense competition and disruption threats. But it has a low valuation and has grown revenues steadily with a stable margin. The insider purchase by the CEO is the first in at least four years and of significant value. The CEO has quite recently also made a purchase of smaller amount in Ralph Lauren, where he is a director, and in 2017, in Brinker International (NYSE:EAT), where he is also a director. Brinker has, since that purchase, increased from $30 to $46. The purchase in Qurate is similar in terms of the two stocks having declined meaningfully prior to the purchase. Given the low business risk (at least in short term), this is an interesting buy.

Basic company Info

Qurate Retail, Inc. engages in the business of video and on-line commerce industries. The firm's principal businesses and assets include its significant consolidated subsidiaries: QVC, Inc., Backcountry.com, Inc., Bodybuilding.com LLC, CommerceHub and Evite, Inc. and its equity affiliates Expedia, Inc., HSN, Inc., FTD Companies, Inc., Interval Leisure Group, Inc. and LendingTree, Inc.

Industry

Catalog & Mail Order Houses

Market cap

9.6 B

Employees

28k

P/S

0.8

Founded

2011

P/E

5

Website

qurateretailgroup.com

P/CF

EV/S

EV/EBITDA

7

1.4

9

Insider Trading

The purchase from CEO Michael George is the first purchase in at least 4 years. It is also a very significant value and ownership increase. Previously, Michael has been on the sell side in the stock, most recently in mid 2016, when he sold at around $26 and the purchase now was at $20, of slightly higher amount. No other purchases of either board members or officers.

Name

Insider Type

Trade date

Buy/Sell

Price

Value

Own. Chg

George Michael A

Pres, CEO

2018-08-30

Buy

$20.40

+$4,499,644

16%

Gilchrist Malcolm Ian Grant

Dir

2017-12-19

Sell/Option

$26.38

-$99,327

-100%

Rapley David E

Dir

2017-11-13

Sell

$23.52

-$101,127

-42%

Vadon Mark C

Dir

2017-10-10

Sell

$22.12

-$2,764,600

-100%

Vadon Mark C

Dir

2017-10-06

Sell

$22.74

-$15,461,897

-84%

Vadon Mark C

Dir

2017-10-04

Sell

$23.46

-$11,147,685

-37%

Gilchrist Malcolm Ian Grant

Dir

2017-09-25

Sell

$24.08

-$56,234

-71%

Vadon Mark C

Dir

2017-08-21

Sell

$21.12

-$6,254,553

-10%

Rapley David E

Dir

2017-08-17

Sell

$21.47

-$129,235

-37%

Vadon Mark C

Dir

2017-08-17

Sell

$21.24

-$16,184,900

-20%

Vadon Mark C

Dir

2017-08-15

Sell

$22.00

-$10,592,970

-11%

Vadon Mark C

Dir

2017-08-11

Sell

$22.67

-$18,058,165

-16%

Baer Richard N

GC

2017-03-10

Sell/Option

$43.92

-$1,662,599

-100%

Vadon Mark C

Dir

2016-12-07

Sell

$20.50

-$12,644,769

-11%

Vadon Mark C

Dir

2016-11-22

Sell

$21.38

-$1,552,125

-1%

Vadon Mark C

Dir

2016-11-18

Sell

$21.11

-$8,656,131

-6%

Vadon Mark C

Dir

2016-11-16

Sell

$21.21

-$12,549,784

-8%

Vadon Mark C

Dir

2016-11-14

Sell

$20.94

-$10,701,352

-7%

Shean Christopher W

CFO

2016-09-22

Sell/Option

$38.78

-$186,128

-6%

Rapley David E

Dir

2016-08-29

Sell

$21.09

-$126,941

-27%

George Michael A

Dir

2016-07-11

Sell/Option

$26.24

-$3,935,700

-14%

George Michael A

Dir

2016-06-02

Sell/Option

$27.02

-$4,053,600

-14%

Rapley David E

Dir

2016-05-17

Sell

$25.89

-$100,725

-15%

George Michael A

Dir

2016-05-03

Sell/Option

$26.37

-$3,989,923

-12%

Malone John C

COB, 10%

2016-05-02

Sell

$37.62

-$1,275,448

-2%

George Michael A

Dir

2016-04-29

Sell/Option

$40.14

-$4,315,251

-40%

Vadon Mark C

Dir

2016-04-25

Sell

$26.63

-$1,574,034

-1%

Vadon Mark C

Dir

2016-04-21

Sell

$26.75

-$8,210,810

-3%

Vadon Mark C

Dir

2016-04-19

Sell

$26.68

-$3,575,402

-1%

Vadon Mark C

Dir

2016-04-15

Sell

$26.08

-$3,781,987

-2%

Vadon Mark C

Dir

2016-04-13

Sell

$26.04

-$5,658,352

-2%

Vadon Mark C

Dir

2016-04-11

Sell

$25.73

-$7,151,206

-3%

Vadon Mark C

Dir

2016-04-07

Sell

$25.77

-$9,269,866

-3%

George Michael A

Dir

2016-04-05

Sell/Option

$25.10

-$3,765,525

-14%

Malone John C

COB, 10%

2016-04-01

Sell

$28.30

-$3,621,847

-8%

Rosenthaler Albert E

Chief Tax Officer

2016-03-30

Sell

$28.27

-$561,311

-9%

Shean Christopher W

CFO

2016-03-29

Sell/Option

$24.70

-$1,611,617

-25%

Baer Richard N

GC

2016-03-28

Sell/Option

$38.44

-$874,307

-67%

Shean Christopher W

CFO

2016-03-22

Sell

$24.59

-$375,157

-5%

George Michael A

Dir

2016-03-02

Sell/Option

$25.82

-$3,872,610

-14%

Baer Richard N

GC

2016-03-02

Sell/Option

$25.84

-$1,644,493

-58%

Malone John C

COB, 10%

2016-03-01

Sell

$28.22

-$3,611,631

-8%

George Michael A

Dir

2016-02-02

Sell/Option

$25.44

-$3,816,255

-14%

Malone John C

COB, 10%

2016-02-01

Sell

$28.61

-$3,661,961

-7%

George Michael A

Dir

2016-01-05

Sell/Option

$29.66

-$5,516,203

-15%

Malone John C

COB, 10%

2016-01-04

Sell

$30.14

-$3,858,086

-7%

Romrell Larry E

Dir

2015-12-15

Sell

$26.93

-$151,374

-15%

Maffei Gregory B

Pres, CEO

2015-12-15

Sell/Option

$26.89

-$6,036,522

-4%

George Michael A

Dir

2015-12-07

Sell/Option

$30.02

-$5,583,419

-15%

Chart and technical

The stock has been trading sideways for many years. Dips have previously shown to be good entry points on a 6 months to 12 months' time frame. Will buy this at current levels.

Fundamentals

Revenues seem to have a GDP like growth trend over time. Gross margins have been very stable. The p/e on estimated 2019 numbers is 10.6. In Q2, revenues rose 37.4% as reported, thanks to pre-acquisition HSNi results.

Dec-17

Dec-16

Dec-15

Dec-14

Dec-13

Dec-12

Dec-11

Total Revenues

10,404

10,647

9,989

10,499

10,219

9,888

9,616

y/y %

-2.3%

6.6%

-4.9%

2.7%

3.3%

2.8%

Gross profit

2956

3032

2897

3059

2954

2762

-3480

Gross margin %

28%

28%

29%

29%

29%

28%

-36%

EBITDA

1,603

1,774

1,641

1,838

1,827

2,297

1,914

EBITDA %

15%

17%

16%

18%

18%

23%

20%

Net income

2441

1235

869

537

501

1530

912

Cash and equivalents

903

825

2449

2306

902

2660

847

Free cash flow

2244

1210

958

1407

736

1114

0

Seeking Alpha and other articles

There are no articles from 2018 on the company.

Aug. 2017: Should Investors Continue To Shop At QVC Group?

Agree Realty Corp. (ADC)

Summary

This article series has already had success with various REITs. ADC is another good candidate that recently made a dip and insiders stepped in. The longer term trend is steadily higher. I will follow their lead.

Basic company Info

Agree Realty Corp. is a real estate investment trust, which focuses on the ownership, development, acquisition, and management of retail properties net leased to national tenants. It specializes in acquiring and developing net leased retail properties for retail tenants.

Industry

REIT

Market cap

1.7 B

Employees

32

P/S

12.9

Founded

1971

P/E

28.6

Website

agreerealty.com

P/CF

EV/S

EV/EBITDA

19.5

17.3

21.5

Insider Trading

In September, four directors have made significant purchases. Looking back in time, this is a stock with mostly purchases, but it is also a stock with consistent increase in price. The COB made a purchase in 2017 at $44.7 and now at $54.8. Among officers, the most recent purchase was made by the CFO in December 2017.

Name

Insider Type

Trade date

Buy/Sell

Price

Value

Own. Chg

Erlich Craig

Dir

2018-09-06

Buy

$54.80

+$109,600

20%

Agree Richard

Exec COB

2018-09-06

Buy

$54.77

+$328,620

1%

Lehmkuhl Greg

Dir

2018-09-06

Buy

$54.75

+$39,968

18%

Rakolta John Jr

Dir

2018-09-05

Buy

$54.80

+$727,455

7%

Rakolta John Jr

Dir

2018-07-24

Buy

$52.65

+$11,583

0%

Rakolta John Jr

Dir

2018-03-01

Buy

$47.01

+$470,100

5%

Rakolta John Jr

Dir

2018-02-28

Buy

$47.19

+$589,875

7%

Thelen Clayton R.

CFO, Secretary

2017-12-11

Buy

$49.56

+$50,056

25%

Rakolta John Jr

Dir

2017-11-30

Buy

$49.67

+$163,911

2%

Frankel Merrie S.

Dir

2017-05-17

Buy

$45.12

+$4,512

66%

Rubenfaer William S.

Dir

2017-05-16

Buy

$44.92

+$112,300

14%

Agree Richard

Exec COB

2017-05-04

Buy

$44.73

+$1,118,250

6%

Rakolta John Jr

Dir

2017-05-04

Buy

$44.82

+$448,200

6%

Silverman Gene

Dir

2016-11-14

Buy

$41.10

+$82,200

8%

Rakolta John Jr

Dir

2016-10-26

Buy

$47.50

+$570,000

8%

Agree Joey

Pres, CEO

2015-08-24

Buy

$28.96

+$243,264

3%

Rubenfaer William S.

Dir

2015-08-24

Buy

$28.86

+$115,450

40%

Agree Richard

Exec COB

2015-08-24

Buy

$28.78

+$431,650

4%

Agree Joey

Pres, CEO

2015-06-26

Buy

$29.61

+$290,444

4%

Agree Richard

Exec COB

2015-06-08

Buy

$29.97

+$299,740

2%

Rubenfaer William S.

Dir

2015-06-03

Buy

$30.15

+$60,300

20%

Hermiz Laith

EVP

2015-03-19

Sell

$33.50

-$100,500

-10%

Agree Richard

COB

2014-12-04

Buy

$29.67

+$741,750

7%

Rubenfaer William S.

Dir

2014-12-04

Buy

$29.67

+$89,010

43%

Chart and technical

Typical buy a dip and sell 6 months later at 10-20% higher prices stock.

Fundamentals

Very strong revenue growth, dividend yield of 4% and well-diversified across geography and tenants.

Dec-17

Dec-16

Dec-15

Dec-14

Dec-13

Dec-12

Dec-11

Total Revenues

117

92

70

54

44

35

30

y/y %

27.4%

30.7%

30.6%

23.2%

25.7%

14.2%

Gross profit

104

83

64

49

40

31

27

Gross margin %

89%

91%

91%

92%

92%

90%

88%

EBITDA

94

75

57

42

34

27

23

EBITDA %

81%

82%

81%

78%

79%

78%

76%

Net income

58

45

39

19

20

18

23

Cash and equivalents

51

33

3

5

15

1

2

Free cash flow

39

34

38

18

15

1

-10

Seeking Alpha and other articles

Aug. 2018: Agree Realty: The Smaller Version Of Realty Income

April 2018, a very good fundamental run through: Forget Hoops, This Michigan-Based REIT Does Nothing But Net

Brink's Co (BCO)

Summary

Brink's was actually covered in February this year, bought at $76, but unfortunately, I got stopped out early and missed the rebound which topped out at around $85. Since then, the stock has been down as low as $67. During the last week, there has been significant purchases at $70, but looking back in June and August, also significant sales at slightly higher prices ($79). Also further back in history, there is a mix of buying and selling. The stock could once again be due for a technical bounce, but given the fragile business model of cash handling, I am cautious to expect too much of this stock or stay too long in it.

Basic company Info

The Brink's Co. provides secure logistics and cash management services. Its logistics and security solutions include cash-in-transit; ATM replenishment & maintenance; and cash management & payment services, such as vault outsourcing, money processing, intelligent safe services, and international transportation of valuables.

Industry

Security & Protection Services

Market cap

3.7 B

Employees

62k

P/S

1.06

Founded

1859

P/E

-

Website

brinkscompany.com

P/CF

P/B

EV/S

EV/EBITDA

15.7

16.5

1.4

10.6

Insider Trading

Historically, there is a mix of buying and selling giving no clear confirmation of insider conviction.

Name

Insider Type

Trade date

Buy/Sell

Price

Value

Own. Chg

Pertz Douglas A

Pres, CEO

2018-09-06

Buy

$70.03

+$140,060

1%

Domanico Ronald James

EVP, CFO

2018-09-07

Buy

$69.45

+$138,900

5%

Zukerman Amit

EVP

2018-08-06

Sell

$79.41

-$397,050

-7%

Beech Michael F

EVP

2018-06-14

Sell/Option

$78.67

-$363,849

-8%

Marshall McAlister C II

SVP, GC, CAO

2018-06-12

Sell/Option

$79.76

-$1,448,681

-15%

Pal Rohan

SVP, CIO

2018-06-01

Sell/Option

$78.70

-$101,917

-7%

Colan Thomas

Controller

2018-06-01

Sell/Option

$79.00

-$726,563

-64%

Stoeckert George I

Dir

2018-02-14

Buy

$74.14

+$148,290

13%

Stoeckert George I

Dir

2018-02-12

Buy

$75.87

+$151,746

15%

Domanico Ronald James

EVP, CFO

2018-02-08

Buy

$72.18

+$252,630

9%

Pertz Douglas A

Pres, CEO

2018-02-08

Buy

$72.91

+$729,100

6%

Stoeckert George I

Dir

2017-12-08

Buy

$80.55

+$217,492

25%

Domanico Ronald James

EVP, CFO

2017-11-01

Buy

$76.85

+$230,550

9%

Pertz Douglas A

Pres, CEO

2017-11-02

Buy

$76.18

+$500,503

4%

Pertz Douglas A

Pres, CEO

2017-10-30

Buy

$77.00

+$100,100

1%

Feld Peter A

Dir

2017-09-11

Sell/Option

$80.83

-$2,182,340

-2%

Feld Peter A

Dir

2017-08-24

Sell/Option

$75.81

-$4,548,579

-4%

Feld Peter A

Dir

2017-08-21

Sell/Option

$75.72

-$5,679,303

-5%

Feld Peter A

Dir

2017-08-14

Sell/Option

$76.47

-$6,105,630

-5%

Marshall McAlister C II

SVP, GC, CAO

2017-08-03

Sell

$76.96

-$1,038,941

-17%

Feld Peter A

Dir

2017-07-31

Sell/Option

$78.10

-$14,505,814

-11%

Feld Peter A

Dir

2017-06-08

Sell/Option

$65.17

-$30,954,403

-22%

Feld Peter A

Dir

2017-05-31

Sell/Option

$63.27

-$25,309,711

-15%

Herling Michael J

Dir

2017-05-15

Sell

$61.06

-$122,120

-40%

Pertz Douglas A

Pres, CEO

2017-05-12

Buy

$61.00

+$585,630

6%

Colan Thomas

Controller

2017-05-09

Sell

$62.30

-$58,251

-12%

Feld Peter A

Dir

2017-05-01

Sell/Option

$60.43

-$26,588,968

-15%

Pertz Douglas A

Pres, CEO

2017-03-15

Buy

$52.30

+$404,227

5%

Pertz Douglas A

Pres, CEO

2017-03-09

Buy

$52.00

+$638,092

9%

Colan Thomas

Controller

2017-03-07

Sell

$52.40

-$50,618

-10%

Feld Peter A

Dir

2017-03-07

Sell/Option

$52.25

-$7,837,485

-5%

Feld Peter A

Dir

2017-03-03

Sell/Option

$52.53

-$39,398,018

-19%

Domanico Ronald James

EVP, CFO

2017-03-07

Buy

$52.19

+$260,955

19%

Pertz Douglas A

Pres, CEO

2017-03-06

Buy

$51.95

+$1,558,500

29%

Zukerman Amit

EVP

2017-03-03

Sell

$52.55

-$525,500

-21%

Feld Peter A

Dir

2017-02-21

Sell/Option

$51.80

-$33,669,495

-14%

Colan Thomas

Controller

2016-08-25

Sell

$37.70

-$35,250

-11%

Zukerman Amit

EVP

2016-08-10

Sell/Option

$36.69

-$385,905

-26%

Domanico Ronald James

EVP, CFO

2016-07-14

Buy

$29.86

+$499,976

355%

Stoeckert George I

Dir

2016-06-15

Buy

$29.19

+$213,107

New

Pertz Douglas A

Pres, CEO

2016-06-09

Buy

$29.87

+$2,500,000

423%

Watson Patricia A

VP, CIO

2015-06-02

Sell

$32.15

-$37,358

-5%

Zukerman Amit

EVP

2015-05-22

Sell/Option

$31.79

-$154,627

-30%

Turner Ronald L

Dir

2015-05-22

Sell/Option

$31.85

-$92,269

-63%

Alewine Betty C

Dir

2015-05-15

Sell/Option

$33.20

-$92,827

-16%

Marshall McAlister C II

VP, GC

2015-05-08

Sell/Option

$32.70

-$596,808

-35%

Tyson Holly R

VP, CHRO

2015-05-06

Sell/Option

$32.38

-$941,319

-42%

Chart and technical

Sideways action likely to continue, buy dips and sell rips.

Fundamentals

Dec-17

Dec-16

Dec-15

Dec-14

Dec-13

Dec-12

Dec-11

Total Revenues

3,347

3,021

3,061

3,562

3,779

3,578

3,663

y/y %

10.8%

-1.3%

-14.1%

-5.7%

5.6%

-2.3%

Gross profit

739

629

618

614

719

683

697

Gross margin %

22%

21%

20%

17%

19%

19%

19%

EBITDA

421

316

236

134

329

311

351

EBITDA %

13%

10%

8%

4%

9%

9%

10%

Net income

41

81

-12

-84

147

212

199

Cash and equivalents

614

184

182

176

256

202

183

Free cash flow

78

55

95

5

29

80

63

Seeking Alpha and other references

Aug. 2018: Brink's Shaping Up Nicely With A Strong Q2 And Dunbar Acquisition

July 2018: The Brink's Company Could Take A Breather - Looks Good Long Term

RR Donnelley & Sons Co. (RRD)

Summary

RRD ranks high on the turnaround in insider activity, but the fundamentals and technicals are weak. Treat it as a turnaround case and keep size small.

Basic company Info

R.R. Donnelley & Sons Co. engages in the provision of multichannel communication solutions. It operates through the following segments: Variable Print, International, Strategic Services, and Corporate. The Variable Print segment comprises of the short-run and transactional printing operations. The International segment covers the printing operations in Asia, Latin America, and Canada. The Strategic Services segment deals with logistics, sourcing, and digital and creative solutions. The Corporate segment consists of unallocated selling, general and administrative activities, and associated expenses including, in part, executive, legal, finance, communications, certain facility costs and last in, first out inventory provisions.

Industry

Business services

Market cap

0.4 B

Employees

43k

P/S

0.05

Founded

1864

P/E

-

Website

rrdonnelley.com

P/CF

P/B

EV/S

EV/EBITDA

2.9

-

0.34

5.5

Insider Trading

A quite short and sweet insider trading transaction history. Year 2015 and 2016, there were significant sales. In 2018, significant purchases.

Name

Insider Type

Trade date

Buy/Sell

Price

Value

Own. Chg

Peterson Terry D

EVP, CFO

2018-08-09

Buy

$4.93

+$49,350

6%

Rutt Sheila M

EVP, CHRO

2018-08-21

Buy

$5.20

+$39,001

12%

O'Brien Kenneth E

EVP, CIO

2018-08-27

Buy

$5.22

+$104,478

17%

McLevish Timothy R

Dir

2018-05-04

Buy

$6.53

+$130,650

149%

Hamilton Judith H

Dir

2016-05-04

Sell

$16.60

-$332,000

-19%

Sockwell Oliver R

Dir

2015-06-02

Sell

$19.41

-$194,050

-9%

Coxhead Andrew B.

Chief Accounting Officer

2015-06-01

Sell

$19.08

-$95,400

-5%

Hamilton Judith H

Dir

2015-03-09

Sell

$19.70

-$394,018

-18%

Leib Daniel

CFO

2015-03-02

Sell

$19.06

-$381,206

-5%

Bettman Suzanne S

EVP, GC

2015-02-27

Sell

$19.35

-$855,762

-10%

Chart and technical

Horrible trend since a couple of years. This is a falling knife and the only factor in the positive case is the insider purchases. Keep size small.

Fundamentals

Sales have been mostly stable over the last couple of years, but margins continue to be a problem, and in the most recent Q2 report, the company was cash flow negative.

Dec-17

Dec-16

Dec-15

Dec-14

Dec-13

Dec-12

Dec-11

Total Revenues

6,940

6,833

6,881

7,173

10,480

10,222

10,611

y/y %

1.6%

-0.7%

-4.1%

-31.6%

2.5%

-3.7%

Gross profit

1320

1377

1405

1474

2331

2333

2519

Gross margin %

19%

20%

20%

21%

22%

23%

24%

EBITDA

473

649

756

760

1,149

1,230

1,283

EBITDA %

7%

10%

11%

11%

11%

12%

12%

Net income

-34

-496

151

117

211

-651

-123

Cash and equivalents

273

318

289

528

1028

431

450

Free cash flow

109

-45

458

499

478

486

695

Seeking Alpha and other references

June 2018: R.R. Donnelley Is A Stock To Avoid

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in ALL OF THE ABOVE over 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.