According to GuruFocus Insider Data, Fortinet Inc. (FTNT, Financial) and PALL Corp. (PLL, Financial) had the largest CEO/CFO sales during the last two days. All of these transactions had more than $1 million dollars.
Fortinet Inc. (FTNT)
President & CEO, 10% Owner of Fortinet Inc. (FTNT) Ken Xie sold 90,000 shares on 03/22/2011 at an average price of $42.8. Total amount of the transaction is more than $3.8 million. Mr. Xie has been regularly selling the stock since May, 2010. He still owns at least 7 million shares of his company stock.
Fortinet stock prices have been climbing steadily since July, 2010. As Mr. Xie sells, the stock prices have appreciated more than 160%. Fortinet Inc., headquartered in Sunnyvale, Calif., is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. Fortinet Inc. has a market cap of $3.09 billion; its shares were traded at around $41.02 with a breathtaking P/E ratio of 77.4.
For the fiscal year ended on Dec. 31, 2010, Fortinet delivered an annual sales of $324 million, an increase of 28% from a year ago. The company expanded its gross margin from 69.1% to 73.8%. The operating margin increased from 4% to 17%. Wall Street loves the expansion of the profit margins, and the stock price has gained more than 150% since its IPO in Sept. 2009.
Other executives of Fortinet are also selling the company shares. VP & CFO Kenneth A. Goldman sold 55,000 shares since February. Director John L. Walecka sold 153,000 shares of FTNT stock on 02/25/2011 at the average price of $41.26.
Fortinet is in the portfolio of one of the tiger cubs, Andreas Halvorsen. He bought 660,200 shares in the quarter that ended on 12/31/2010, which is 0.18% of the $12.06 billion portfolio of Viking Global Investors LP.
PALL Corp. (PLL)
CEO & President of PALL Corp. (PLL) Eric Krasnoff sold 72,500 shares on 03/23/2011 at an average price of $56.65, a transaction amount of more than $4 million. He also sold about 170,000 shares in December of 2010 at similar prices. These sales are worth more than $12 million in total.
PALL belongs to a stock in the GuruFocus list of Insider Cluster Sales. Its COO Roberto Perez, CFO & Treasurer Lisa McDermott also sold shares in the past 3 months.
Pall Corporation is a supplier of fine filters, principally made by the Company using its proprietary filter media, and other fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a wide variety of liquids and gases. Pall Corp. has a market cap of $6.45 billion; its shares were traded at around $55.87 with a P/E ratio of 21.6 and P/S ratio of 2.8. The dividend yield of Pall Corp. stocks is 1.2%. Pall Corp. had an annual average earnings growth of 11.3% over the past 10 years. GuruFocus rated Pall Corp. the business predictability rank of 3.5-star.
A simple DCF Calculation shows that PALL stock is about 30% overvalued. Since PLL’s business is somewhat predictable, the DCF calculation should give quite an accurate estimate with the intrinsic value of the stock. Also, PLL is traded at historical high price/sales and price/book ratios. Therefore, both the valuation techniques indicate PALL stock is probably overvalued. This might be the reason why the top executives of PALL are selling the stock.
For the complete list of stocks that were bought/sold by their CEOs, go to: GuruFocus Insider Data.
Fortinet Inc. (FTNT)
President & CEO, 10% Owner of Fortinet Inc. (FTNT) Ken Xie sold 90,000 shares on 03/22/2011 at an average price of $42.8. Total amount of the transaction is more than $3.8 million. Mr. Xie has been regularly selling the stock since May, 2010. He still owns at least 7 million shares of his company stock.
Fortinet stock prices have been climbing steadily since July, 2010. As Mr. Xie sells, the stock prices have appreciated more than 160%. Fortinet Inc., headquartered in Sunnyvale, Calif., is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. Fortinet Inc. has a market cap of $3.09 billion; its shares were traded at around $41.02 with a breathtaking P/E ratio of 77.4.
For the fiscal year ended on Dec. 31, 2010, Fortinet delivered an annual sales of $324 million, an increase of 28% from a year ago. The company expanded its gross margin from 69.1% to 73.8%. The operating margin increased from 4% to 17%. Wall Street loves the expansion of the profit margins, and the stock price has gained more than 150% since its IPO in Sept. 2009.
Other executives of Fortinet are also selling the company shares. VP & CFO Kenneth A. Goldman sold 55,000 shares since February. Director John L. Walecka sold 153,000 shares of FTNT stock on 02/25/2011 at the average price of $41.26.
Fortinet is in the portfolio of one of the tiger cubs, Andreas Halvorsen. He bought 660,200 shares in the quarter that ended on 12/31/2010, which is 0.18% of the $12.06 billion portfolio of Viking Global Investors LP.
PALL Corp. (PLL)
CEO & President of PALL Corp. (PLL) Eric Krasnoff sold 72,500 shares on 03/23/2011 at an average price of $56.65, a transaction amount of more than $4 million. He also sold about 170,000 shares in December of 2010 at similar prices. These sales are worth more than $12 million in total.
PALL belongs to a stock in the GuruFocus list of Insider Cluster Sales. Its COO Roberto Perez, CFO & Treasurer Lisa McDermott also sold shares in the past 3 months.
Pall Corporation is a supplier of fine filters, principally made by the Company using its proprietary filter media, and other fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a wide variety of liquids and gases. Pall Corp. has a market cap of $6.45 billion; its shares were traded at around $55.87 with a P/E ratio of 21.6 and P/S ratio of 2.8. The dividend yield of Pall Corp. stocks is 1.2%. Pall Corp. had an annual average earnings growth of 11.3% over the past 10 years. GuruFocus rated Pall Corp. the business predictability rank of 3.5-star.
A simple DCF Calculation shows that PALL stock is about 30% overvalued. Since PLL’s business is somewhat predictable, the DCF calculation should give quite an accurate estimate with the intrinsic value of the stock. Also, PLL is traded at historical high price/sales and price/book ratios. Therefore, both the valuation techniques indicate PALL stock is probably overvalued. This might be the reason why the top executives of PALL are selling the stock.
For the complete list of stocks that were bought/sold by their CEOs, go to: GuruFocus Insider Data.
