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CEO Sells as Their Companies Prices Hit Record Highs

September 25, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Over the past week there have been several CEOs making sells of their stake in their companies. All of the following companies reported CEO sells as their prices hit 10-year highs.

PetSmart (PETM)


CEO David Lenhardt reported a large insider sell this past week as PetSmart’s price is sitting at around its 10-year high. The CEO sold a total of 27,521 shares of the company’s stock at an average price of $73.61 per share. This raked in a notable $2,025,820.81 for Lenhardt. Since this sell, the price per share has increased approximately 0.98%. Lenhardt still maintains 148,949 shares of PetSmart stock.

This sell for Lenhardt represents the first insider transaction the CEO has made since Dec. 2012.

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PetSmart is the largest specialty pet retailer of services and solutions for pets needs. The company employs over 52,000 people and operates 1,289 stores. PetSmart provides pet products as well as in-store services including pet adoption, boarding, grooming and training.

PetSmart’s historical revenue and net income:

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The company reported strong second quarter financials which highlighted:

· Sales up 5.3% to $1.7 billion.

· Diluted EPS up 25% to $0.89 per share.

· The company’s net income equaled $93 million, up from $79 million last year.

· Generated $87 million in cash flows and repurchased $24 million in PetSmart stock.

The Peter Lynch Chart suggests that the company is currently overvalued:

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The analysis on PetSmart reports that the company shows predictable revenue and earnings growth, it’s operating margin is expanding, its dividend yield is at a 3-year low and its price is at a 10-year high.

PetSmart remains popular amongst the gurus with 12 gurus holding a stake in the company.

PetSmart has a market cap of $7.77 billion. Its shares are currently trading at around $74.76 with a P/E ratio of 19.30, a P/S ratio of 1.10 and a P/B ratio of 6.70. The company had an annual average earnings growth of 13.8% over the past ten years.

GuruFocus rated PetSmart the business predictability rank of 5-star.

Sonic (SONC)

CEO Clifford Hudson reported a large insider sell this past week as Sonic’s price is sitting at around its 10-year high. The CEO sold a total of 300,000 shares of the company’s stock at an average price of $18.44 per share. This raked in a significant $5,532,000 for Hudson. Since this sell, the price per share has dropped approximately -1.08%. Lenhardt still maintains a sizeable 646,156 shares of Sonic stock.

Earlier this month Vice President Carolyn Cummins made a much smaller sell, selling 1,500 shares of her stake in the company. She sold her shares for $18.29 per share which brought in $27,435 for the VP.

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These two sells are the first insider transactions reported for Sonic since Jan. 2013.

The company operates and franchises the largest chain of drive-in restaurants ("Sonic Drive-Ins") in the United States. The company owns more than 3,500 drive-ins which serve about 3 million customers every day.

Sonic’s historical revenue and net income:

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Sonic recently created the position of Chief Development and Strategy Officer, and hired John Budd to fill this role. The company created this position in order to strengthen their senior management team as the growth of the company accelerates.

The company recently celebrated its 60th anniversary and along with this release the company reported their projected fourth quarter results which reported:

· A debt extinguishment charge in connection with a previously announced partial debt refinancing.

· A write-down associated with the closure of 12 lower-performing company drive-ins.

· Estimated same-store sales growth of 5.9%.

· EPS to increase about 20% to $0.30.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Sonic has a market cap of $1 billion. Its shares are currently trading at around $17.98 with a P/$E ratio of 26.50 and a P/S ratio of 2.00. Sonic had an annual average earnings growth of 5.1% over the past ten years.

Honeywell International (HON)

President and CEO of Automation and Control Roger Fradin reported a large insider sell this past week as Honeywell’s price is sitting at around its 10-year high. The CEO sold a total of 20,711 shares of the company’s stock at an average price of $85.14 per share. This raked in a significant $1,763,334.54 for Hudson. Since this sell, the price per share has dropped approximately -0.84%. Lenhardt still maintains a sizeable 209,002 shares of Honeywell stock.

President and CEO of Honeywell Performance Materials and Technologies Andreas Kramvis also made a sell of the company’s stock on Sept. 23. The President sold a total of 3,205 shares of Honeywell at an average price of $85.22 per share. Since his buy the price per share has dropped about -0.75%.

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Honeywell is a technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, and process technology for refining and petrochemicals, and energy efficient products and solutions for homes, business and transportation.

Honeywell’s historical revenue and net income:

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The company has had a lot going on recently. It has established an industry first by creating a voice=activated, cloud-connected thermostat for D.I.Y homeowners. The company also recently announced that it had completed its acquisition of Intermec.

The company’s lead CEO, David Cote, was also named Chief Executive Magazine’s 2013 CEO of the Year.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Honeywell International has a market cap of $65.86 billion. Its shares are currently trading at around $83.92 with a P/E ratio of 21.00, a P/S ratio of 1.80 and a P/B ratio of 4.80. The company had an annual average earnings growth of 8.5% over the past ten years.

You can check out more CEO buys and sells here.

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Rating: 3.0/5 (1 vote)

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