Several companies held by over 10 gurus made large sells of their stake in their own companies during the past week. These sells were also made as the companies’ prices were sitting at five- to 10-year high prices. The following companies represent the largest sells coming from corporate executives of companies with high guru ownership.
The following four companies also appear to be overvalued based on Peter Lynch’s valuation of stocks.
Chairman and CEO Laurence Fink made a large insider sell this past week. Fink sold a total of 52,616 shares of BlackRock at a near 10-year high price of $258.08 per share. This raked in $14,999,769 for the CEO. Since he made this sell the price per share has dropped -3.56%. Fink still owns 1,291,084 shares of BlackRock.
BlackRock is the world’s largest asset manager. The company, along with its subsidiaries, provides investment management and securities lending services to institutional clients and to individual investors through various investment vehicles.
The analysis on BlackRock reports:
· The P/S ratio of BlackRock is near a 10-year high of 5.37.
· The company displays poor financial strength.
· It has shown expansion in its operating margin.
· BlackRock has shown predictable revenue and earnings growth.
BlackRock has a market cap of $47.63 billion; its shares were traded at around $276.58 with a P/E ratio of 19.20 and a P/S ratio of 5.10. The dividend yield of BlackRock stocks is 2.20%. The company had an annual average earnings growth of 24.6% over the past 10 years. GuruFocus rated BlackRock the business predictability rank of 3-star.
The Peter Lynch Valuation Chart shows that BlackRock appears to be overvalued:
BlackRock is currently held by 11 gurus.
SanDisk reported two large insider sells this past week coming from both the CEO and the CFO.
President and CEO Sanjay Mehrotra sold 25,000 shares of his stake at $60 per share. This brought in $1,500,000 for the CEO. Mehrotra still holds 31,390 shares of SanDisk. Since his sell, the price per share has dropped 3.2%.
Executive VP of Administration and CFO Judy Bruner sold 60,000 shares, also at $60 per share, this past week. This raked in $3.6 million for the CFO. Bruner still holds 36,645 shares of SanDisk.
These sells come as the price of the stock exceeded its previous five-year high of $59.90.
SanDisk designs, develops and manufactures data storage solutions in a variety of form factors using its flash memory, proprietary controller and firmware technologies. Its mission is to provide simple, reliable and affordable storage for consumer use in portable devices.
The analysis on SanDisk reports:
· The per share revenue has been in decline for the past year.
· The P/S ratio is close to a five-year high of 2.83.
SanDisk has a market cap of $14.43 billion; its shares were traded at around $58.43 with a P/E ratio of 30.50 and a P/S ratio of 2.80.
The Peter Lynch Valuation shows that the stock appears to be overvalued:
There are currently 12 gurus that hold a stake in SanDisk.
Monster Beverage (MNST)
Two corporate executives made large sells of their shares of Monster in the past week.
Chairman and CEO Rodney Sacks and Vice Chairman and President Hilton Schlosberg each sold 30,000 shares of their stake in the company for $55.17 per share. This brought in $1,655,100 for each of the insiders. Since their sells in the company, the price per share has dropped 2.27%.
Monster Beverage is a marketer and distributor of energy drinks and alternative beverages. The company markets and distributes Monster Energy brand drinks, Java Monster brand non-carbonated coffee, Peace Tea, as well as Hansen’s natural sodas, apple juice, multi-vitamin juices and Blue Sky beverages.
The analysis on Monster Beverage reports:
· The company has no debt.
· The company has shown predictable revenue and earnings growth.
· Monster Beverage’s operating margin is expanding.
Monster Beverage has a market cap of $8.99 billion; its shares were traded at $53.92 with a P/E ratio of 29.70 and a P/S ratio of 4.70. The company had an annual average earnings growth of 46.1% over the past 10 years. GuruFocus rated Monster the business predictability rank of 2.5-star.
The Peter Lynch Valuation of Monster Beverage shows that the company appears to be overvalued:
There are currently 11 gurus that hold stake in Monster Beverage.
American Express (AXP)
During the past week, two corporate executives reported significant sells of their stake in American Express.
CEO Kenneth Chenault sold 471,808 shares of American Express at an average price of $76.36 per share. This raked in $36,027,259 for the CEO. Chenault still owns 792,545 shares of American Express. Since his sell, the price per share has increased 0.01%.
Executive VP and CFO Daniel Henry sold 155,869 shares of American Express at $74.56 per share. This brought in $11,621,592 for the CFO. He still owns 58,274 shares of company stock. Since his sell, the price per share has increased 2.43%.
As the chart above shows, insiders have been dumping their shares of company stock as the price is steadily increasing.
American Express provides financial services to its customers. Its principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world.
The analysis on American Express reports the following:
· The company has shown stable and predictable revenue and earnings growth.
· The operating margin is expanding.
· The price has exceeded its previous 10-year high of $76.37.
· The P/S ratio is close to a 10-year high of 2.96.
· The dividend yield is close to a five-year low.
American Express has a market cap of $84.49 billion; its shares were traded at around $76.47 with a P/E ratio of 19.30and a P/S ratio of 2.70. The dividend yield of American Express is 1.10%. The company had an annual average earnings growth of 5.1% over the past 10-years. GuruFocus rated American Express the business predictability rank of 3.5-star.
The Peter Lynch Valuation Chart shows that American Express appears to be overvalued:
There are currently 24 gurus that hold a stake in American Express.
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys:: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.