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6 adobe insiders have sold their stocks in last 30 days

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Ricardo Marty
6 adobe insiders have sold their stocks in last 30 days
on Jan 14, 2014 at 11:40:27 pm

http://seekingalpha.com/article/1944891-adobe-6-different-insiders-have-sol...'>http://us.rd.yahoo.com/finance/external/pssa/SIG=13dbep3fk/*http://seekingalpha.com/article/1944891-adobe-6-different-insiders-have-sol...



NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership Robert BurgessDirectorJan 1094,832 No50,629 shares65.2% Mark GarrettCFOJan 711,899 Yes50,107 shares19.2% Shantanu NarayenCEOJan 250,000 Yes231,672 shares + 488,300 options6.5% David WadhwaniSVPDec 1928,010 No25,875 shares52.0% John WarnockDirectorDec 1620,000 No784,211 shares2.5% Edward BarnholtDirectorDec 1650,000 No25,124 shares66.6% There have been 254,741 shares sold by insiders during the last 30 days. Mark Garrett and Shantanu Narayen sold shares pursuant to a Rule 10b5-1 plan. SEC Rule 10b5-1  is a regulation enacted by the United States Securities and Exchange Commission (SEC) in 2000. The SEC states that Rule 10b5-1 was enacted in order to resolve an unsettled issue over the definition of insider trading, which is prohibited by SEC Rule 10b-5. After Rule 10b5-1 was enacted, the SEC staff publicly took the position that canceling a planned trade made under the safe harbor does not constitute insider trading, even if the person was aware of the inside information when canceling the trade. This staff interpretation raises the possibility that executives can exploit this safe harbor by entering into 10b5-1 trading plans before they have inside information while retaining the option to later cancel those plans based on inside information. For example, a CEO of a company could call a broker on January 1 and enter into a plan to sell a particular quantity of shares of his company's stock on March 1, find out terrible news about his company on February 1 that will not become public until April 1, and then go forward with the March 1 sale anyway, saving himself from losing money when the bad news becomes public. Under the terms of Rule 10b5-1(b) this is insider trading because the CEO "was aware" of the inside information when he made the trade. But he can assert an affirmative defense under Rule 10b5-1(c), because he planned the trade before he learned the inside information.Seeking Alpha PortfolioSeeking AlphaFree In general, it is a safer way for an insider to sell shares pursuant to a Rule 10b5-1 trading plan than without it. Insider selling by calendar month Here is a table of Adobe's insider-trading activity  by calendar month. MonthInsider selling / sharesInsider buying / shares January 2014156,7310 December 2013163,0100 November 201357,7400 October 20136,175,0000 September 201396,0560 August 201365,0000 July 2013813,9390 June 2013450,2760 May 201300 April 2013324,0730 March 2013465,9620 February 201300 January 2013284,1775,000 There have been 9,051,964 shares sold, and there have been 5,000 shares purchased by insiders since January 2013. Financials Adobe reported the fiscal 2013 full-year , which ended November 29, financial results on December 12 with the following highlights: Revenue$4.1 billion Net income$290.0 million Cash$3.2 billion Debt$1.5 billion Outlook Adobe's guidance is as follows:Q1/2014FY2014 Revenue$950-$1,000 million$4.1 billion Non-GAAP EPS$0.22-$0.28$1.10 GAAP EPS$0.02-$0.08$0.27 (click to enlarge) (Source: Earnings presentation ) Competition Adobe's competitors  include Apple (AAPL ),Microsoft (MSFT ), and Avid Technology(AVID ). Here is a table comparing these companies. CompanyADBEAAPLMSFTAVID Market Cap:29.73B479.51B300.86B286.10M Employees:N/A80,30099,0001,787 Qtrly Rev Growth (yoy):-0.100.040.16-0.23 Revenue:4.06B170.91B80.37B622.45M Gross Margin:0.860.380.740.52 EBITDA:769.06M55.76B31.37B7.43M Operating Margin:0.110.290.35-0.03 Net Income:289.98M37.04B22.64B-69.93M EPS:0.5639.752.67-1.81 P/E:106.3013.4113.49N/A PEG (5 yr expected):4.510.871.88N/A P/S:7.282.823.690.44 Adobe has the highest P/S ratio among these four companies. Here is a table of these competitors' insider-trading activities during the last 30 days. CompanyInsider buying / sharesInsider selling / shares AAPL 03,066 MSFT 019,800 AVID 00 Only Adobe has seen intensive insider selling during the last 30 days. Conclusion There have been six different insiders selling Adobe, and there have not been any insiders buying Adobe during the last 30 days. Four of these six insiders decreased their holdings by more than 10%. Adobe has an insider ownership  of 0.38%. Before entering short Adobe, I would like to get a bearish confirmation from the Point and Figure chart . The two main reasons for the proposed short entry are relatively high P/S ratio, and the intensive insider-selling activity. Disclosure: I am short AAPL, . 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.Rising Rates Shine A Dull Light On Active Bond Funds Seeking Alpha PortfolioSeeking AlphaFree


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Dave LaRonde
Re: 6 adobe insiders have sold their stocks in last 30 days
on Jan 14, 2014 at 11:47:10 pm

Wow! First Francois Hollande, now Adobe execs! Everyone has high-maintenance girlfriends on the side! Why not me?

But I do take your implication. I think it has something to do with the terms "rats" and "sinking ship". I just don't know if that's the correct assumption to draw.

Dave LaRonde
Promotion Producer
KGAN (CBS) & KFXA (Fox) Cedar Rapids, IA


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Rich Rubasch
Re: 6 adobe insiders have sold their stocks in last 30 days
on Jan 15, 2014 at 12:28:10 am

Hmmm...I have been an Adobe fan since they purchased Cosa. Something is surely going on...like a disagreement on what makes the company profitable. Why? They have a strangle hold on the industry. Their software in our industry is amazing and it dominates the competition.

Have so many people hacked their software that developing new versions is not profitable anymore? After the CS series came out they locked it down pretty good, IMO.

Now we have the subscription model and it seems that some inside Adobe are willing to wait it out and see if the industry shifts, and others who aren't willing to gamble their stock options to find out.

Not quite what AVID is going thru but....

And NAB is just around the corner. What shall we see thence?

Rich Rubasch
Tilt Media Inc.
Video Production, Post, Studio Sound Stage
Founder/President/Editor/Designer/Animator
http://www.tiltmedia.com


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Dan Stewart
Re: 6 adobe insiders have sold their stocks in last 30 days
on Jan 15, 2014 at 1:31:47 pm

As John Steinbeck said of the banks:
'The monster must keep growing. It can't stay the same size. If it stops growing it will die.'

I think adobe's recent behaviour just reflects a largely feature complete software kit with only small incremental improvements left to make - or at least that perception by its capitalist owners. The CC hardball to hit one final peak and now this..



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Daniel McClintock
Re: 6 adobe insiders have sold their stocks in last 30 days
on Jan 19, 2014 at 2:06:24 am

Last week Autodesk had eight insiders sell their stocks. I don't think the world of either Adobe or Autodesk is crumbling. This type of activity is normal and legal.

http://money.cnn.com/magazines/moneymag/money101/lesson10/index3.htm

Now Avid, on the other hand, has me worried.

----------------------------

"Sometimes Life Needs a Cmd-Z!"


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