What Should Investors Know About These Companies With Recent Insider Selling?

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USANA Health Sciences Inc. (NYSE:USNA) had one of its top executives selling big this week. Co-Chief Executive Officer Dave Wentz reported selling 6,000 shares on Tuesday at prices that ranged from $130.00-to-$132.00 per share. After the recent sell-off, the co-CEO currently holds an ownership stake of 442,765 shares. The manufacturer of high-quality nutritional and personal care products has a customer base that is comprised of two groups of customers: associates and preferred customers. The former group comprises independent distributors of the company’s products, while the latter one purchases products solely for their personal use. The number of associates and preferred customers in the Asia Pacific region accounts for 78% of the overall customer base, so the company generates most of its revenues in this region. USANA Health’s net sales, for the nine months that ended October 3, totaled $685.91 million, up from $562.60 million reported for the same period of 2014. This increase was mainly driven by a 97.2% increase in local currency net sales in mainland China. The company’s stock trades at a trailing P/E ratio of 18.64, which is slightly below the average of 22.73 for the companies contained within the S&P 500 benchmark. Jim Simons’ Renaissance Technologies reported owning 836,883 shares of USANA Health Sciences Inc. (NYSE:USNA) via its latest quarterly 13F.

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Zendesk Inc. (NYSE:ZEN) has seen numerous insiders sell stock so far this month, but most sales were made in connection to the exercise of stock options. Hence, we will only display the insider sales that were not conducted under trading plans and were not related to freshly-exercised stock options. Director Elizabeth A. Nelson offloaded 25,000 shares on Monday at a weighted average price of $26.09 and currently owns a stake of 80,429 shares. The software development company that offers a software-as-a-service customer service platform (including live chat software and analytics software) has experienced significant revenue growth lately. Zendesk reported revenue of $146.12 million for the nine months that ended September 30, up from $88.51 million reported a year ago. The company’s business has grown at a high pace and Zendesk’s management anticipates to invest more capital so as to drive long-term growth. The company’s sales and marketing team increased to 453 employees from 264 during the 12-month period ending in September 2015, and Zendesk plans to expand its direct sales force even further in an attempt to boost sales growth by targeting larger organizations. Most financial hubs that have coverage on the stock have great expectations about the company’s future growth prospects. Just recently, Pacific Crest Securities raised its price target on the software company to $35 from $30, citing multiple opportunities for growth. A number of 21 hedge funds from our database had stakes in the company at the end of the third quarter, accumulating 16.30% of its outstanding shares. Ken Griffin’s Citadel Advisors LLC holds a 1.81 million-share position in Zendesk Inc. (NYSE:ZEN) as of September 30.

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Disclosure: None

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