Sunday, March 3, 2013

Gentiva Management: Insider Stock Sales


Gentiva executives sold stock during the last quarter of 2012 and first quarter of 2013.  New Executive Chairman Rod Wndley sold 230,000 shares for proceeds of nearly $2.5 million.  This is hardly a vote of confidence from Gentiva's expected turnaround chief.

Hospice Division President Jeff Shaner flipped 28,000 option shares, paying $5.16 per share and selling for an average $11.05.  Shaner made $164,000 with his option redemption.

On insider buys vs. sells, the metric shows zero buys and fifteen sales.   Gentiva CEO Tony Strange failed to mention this in their Q4 and year end analysts call.   Maybe analysts will catch it before the next investor presentation.

Barclays Global Healthcare Conference -- Miami, Florida at 4:45 p.m. ET on Tuesday, March 12, 2013

Might Tony Strange have guidance on the impact of sequestration in this call?   One analyst gave Tony a hard time over his sequestration caginess.  Will she pop up in the Q & A?

While analysts missed insider sales, Seeking Alpha caught them. Gentiva made their post "Three Stocks with Recent Intensive Insider Selling."  The Gentiva analysis summary states:

There have been four insider sell transactions and there have not been any insider buy transactions during the last 30 days. The stock is trading at a P/E ratio of 11.89 and a forward P/E ratio of 7.60. The company has a book value of $7.63 per share. There are two analyst buy ratings, six neutral ratings and one sell rating, with an average target price of $8.88. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart.  Three main reasons for the proposed short entry are negative revenue growth, bearish analyst target prices and the intensive insider selling activity.  
 What news will break next?  Will the company speak to how it plans to weather the 2% Medicare hospice cut from sequestration?  Will their expected March Def 14a reveal executive incentive compensation for 2012?  When will the company let employees know if any raise can be expected in 2013? 

While those at the bottom wait for crumbs to fall from Atlanta, Gentiva executives stand enriched.  They'd have it no other way.


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