The week of June 22 saw several insider sells consisting of over one million shares each. The companies seeing these sales included Oracle Corp. (ORCL, Financial), Plug Power Inc. (PLUG, Financial) and DraftKings Inc. (DKNG, Financial).
Oracle
GuruFocus' Insider Trades notes that on June 24, Lawrence Ellison sold 2.80 million shares of the company he co-founded. According to Barron's, this is the first time in almost a decade that Lawrence has sold shares. The shares traded at a price of $55.22 per share and have declined in price by 2.10% since the sale.
Oracle sells a wide range of enterprise IT solutions, including databases, middleware, applications and hardware. While software licenses, support and maintenance continue to represent roughly 70% of revenue, the company is undergoing a mix shift toward cloud-based subscriptions that should necessitate continued heavy investment in the business model transition. Oracle provides software-as-a-service, platform-as-a-service and infrastructure-as-a-service offerings. Legacy offerings include Oracle Database software and Oracle Fusion Middleware.
June 26 saw Oracle trading at $54.23 per share with a market cap of $165.89 billion. According to the Peter Lynch chart, the stock has been trading above its intrinsic value for the last several years.
GuruFocus gives the company a financial strength raing of 4 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 4 out of 10. Recent issuance of debt has brought the company to a cash-to-debt ratio of 0.5, placing it lower than 71.94% of the software industry. Strong operating and net margin percentages beat out the majority of the industry and lead toward the high profitability ranking.
Plug Power
Plug Power saw sells made by both Andrew Marsh, president and CEO, and Keith Schmid, chief operating officer and senior vice president. Marsh sold 1.21 million shares at a price of $7.24. Keith sold 200,000 shares at a price of $7.04. Both have watched the price decrease since their sale.
Plug Power is an innovator of modern hydrogen and fuel cell technology. It has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable and cost-effective way. With proven hydrogen and fuel cell products, the company replaces lead acid batteries to power electric industrial vehicles, such as the lift trucks customers use in their distribution centers. Its ProGen platform of modular fuel cell engines empowers OEMs and system integrators to adopt hydrogen fuel cell technology.
As of June 26, the company was trading at $6.83 per shares with a market cap of $2.27 billion. GuruFocus gives the company a financial strength rating of 2 out of 10 and a profitability rank of 2 out of 10. The company has continued to issue new long term debt and the return on invested capital is outweighed by the weighted average cost of capital.
DraftKings
DraftKings saw multiple insider sells from directors within the company this week. Sales include 4.68 million shares by 10% owner Shalom Meckenzie, 3.34 million shares by John S. Salter, 1.04 million shares by Steven Murray and one million shares by Ryan Moore. Since the sales have been made, shares have declined in price by 13.99%.
DraftKings is a digital sports entertainment and gaming company. The company provides users with daily fantasy sports, sports betting and iGaming opportunities. It offers online and retail sports wagering services, online daily fantasy sports contests and online casino games. The company generates its revenue from online gaming, which includes daily fantasy sports, iGaming and Sportsbook. Geographically, it generates revenue from the United States.
June 26 saw the company trading at $33.34 per share with a market cap of $10.95 billion. The Peter Lynch chart suggests the stock is trading above its intrinsic value and is overpriced.
GuruFocus gives the company a financial strength rating of 7 out of 10 with no debt currently issued. The company has a return on equity and a return on assets that is lower than the majority of the travel and leisure industry.
Disclaimer: Author owns no stocks mentioned.
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