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There was intensive insider selling in IAC/InterActiveCorp. (NASDAQ:IACI) in July, 2012. The stock peaked at $55.57 on October 16, 2012 and plunged all the way to $39.43 on January 24, 2013 or 29.0% below the October, 2012 highs.

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With this episode in mind, I screened for stocks which have seen recent intensive insider selling. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

In this article, I will feature three stocks that met these three criteria of intensive insider selling in the last 30 days.

1. Onyx Pharmaceuticals (NASDAQ:ONXX), a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally.

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Insider selling by insider (last 30 days)

  • Antonio Grillo-López sold 68,164 shares on April 1-11 pursuant to a 10b5-1 plan. Antonio Grillo-López currently holds 6,600 shares or less than 0.1% of the company. Antonio Grillo-López, M.D. has served as a Director since September 2002.
  • Julianna Wood sold 10,855 shares on April 1-10 pursuant to a 10b5-1 plan. Julianna Wood currently holds 19,374 shares or less than 0.1% of the company. Julianna Wood is Vice President, Public Affairs.
  • Magnus Lundberg sold 20,000 shares on April 1-11 pursuant to a 10b5-1 plan. Magnus Lundberg currently holds 14,216 shares or less than 0.1% of the company. Magnus Lundberg has served as a Director since June 2000.
  • Paul Goddard sold 2,000 shares on April 10 pursuant to a 10b5-1 plan. Paul Goddard currently holds 14,890 shares or less than 0.1% of the company. Paul Goddard has served as a Director since February 1997 and is currently the Lead Director of the company.
  • Suzanne Shema sold 9,267 shares on April 1-8 pursuant to a 10b5-1 plan. Suzanne Shema currently holds 34,618 shares or less than 0.1% of the company. Suzanne Shema is Executive Vice President, General Counsel and Corporate Secretary.
  • Thomas Wiggans sold 3,700 shares on April 5 pursuant to a 10b5-1 plan. Thomas Wiggans currently holds 8,965 shares or less than 0.1% of the company. Thomas Wiggans has served as a Director of the company since March 2005.
  • Anthony Coles sold 32,272 shares on March 28 - April 1 pursuant to a 10b5-1 plan. Anthony Coles currently holds 131,198 shares or 0.2% of the company. Anthony Coles is Chairman and Chief Executive Officer.
  • Juergen Lasowski sold 2,651 shares on April 1 pursuant to a 10b5-1 plan. Juergen Lasowski currently holds 36,265 shares or less than 0.1% of the company. Juergen Lasowski is Executive Vice President, Corporate Development and Strategy.
  • Kaye Foster-Cheek sold 3,833 shares on April 1-2 pursuant to a 10b5-1 plan. Kaye Foster-Cheek currently holds 27,066 shares or less than 0.1% of the company. Kaye Foster-Cheek is Senior Vice President, Global Human Resources.
  • Matthew Fust sold 3,861 shares on April 1 pursuant to a 10b5-1 plan. Matthew Fust currently holds 51,551 shares or less than 0.1% of the company. Matthew Fust is Executive Vice President and Chief Financial Officer.
  • Helen Torley sold 466 shares on April 1 pursuant to a 10b5-1 plan. Helen Torley currently holds 47,646 shares or less than 0.1% of the company. Helen Torley is Executive Vice President and Chief Commercial Officer.

Insider selling by calendar month

Here is a table of Onyx's insider trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 2013146,1310
March 201332,8230
February 201346,2150
January 201328,0610

The month of April has seen the most insider selling.

Financials

The company reported the full year 2012 financial results on February 21 with the following highlights:

Revenue$362.2 million
Net loss$187.8 million
Cash$492.8 million
Debt$174.4 million

During January 2013, Onyx raised approximately $352 million in net proceeds from a public offering of 4.4 million shares of common stock.

Upcoming milestones

Proteasome Inhibition: Phase 3 Kyprolis trials across all multiple myeloma lines

  • FOCUS trial interim results possible 2H13
  • ASPIRE trial interim results expected 4Q13 or later
  • ENDEAVOR head-to-head trial underway
  • Front-line development planned for 2013

Stivarga: Bayer (OTCPK:BAYZF) executing a broad global development program

  • U.S.: GIST submission filed in August 2012 - priority review
  • EU: mCRC submission filed in May 2012 - action expected 1H13; GIST submission after mCRC approval
  • Japan: mCRC application submitted in July 2012 - priority review; GIST submitted December 2012
  • Additional Phase 3 trials planned to begin in 2013

Nexavar: Potential in additional indications

  • DECISION trial met primary endpoint in differentiated thyroid cancer; data presentation, sNDA filing in 2013
  • RESILIENCE trial in breast cancer; enrollment completion expected 1H13

Palbociclib: Pfifer (NYSE:PFE) plans to initiate Phase 3 trial in advanced breast cancer in 2013

Competition

Nexavar for unresectable liver cancer. Currently, there are no other targeted systemic therapies approved for unresectable liver cancer. However, there are several other therapies in development, including a Phase 2 trial of bevacizumab plus erlotinib and a Phase 2 trial of TKI 1258 versus Nexavar. Other drugs being studied in HCC include ramucirumab and everolimus. In addition, there are many existing approaches used in the treatment of unresectable liver cancer including alcohol injection, radiofrequency ablation, chemoembolization, cryoablation and radiation therapy.

Nexavar for advanced kidney cancer. Currently, six novel agents besides Nexavar have been approved for the treatment of advanced kidney cancer - Sutent, Torisel, Avastin, Afinitor, Votrient and Inlyta. In addition, AVEO Pharmaceuticals (NASDAQ:AVEO) announced that tivozanib demonstrated superiority over sorafenib in the primary endpoint of progression-free survival in a global randomized Phase 3 clinical trial of patients with advanced renal cell carcinoma, and has submitted an NDA to the FDA seeking approval in this indication. Additional agents being studied versus Nexavar include Novartis' (NYSE:NVS) dovitinib.

Kyprolis for multiple myeloma. Currently, there are three commonly-used agents approved in the U.S. for the treatment of patients with multiple myeloma - Velcade, Revlimid and Thalomid. Other approved agents include Pomalyst, approved by the FDA on February 8, 2013 for the relapsed and refractory patient population. Other potentially competitive therapies are in clinical development for multiple myeloma. Vorinistat, being developed by Merck & Co. (NYSE:MRK), and panobinostat, being developed by Novartis, are being studied in combination with bortezomib for relapsed myeloma; and elotuzumab, being developed by Abbott Laboratories (NYSE:ABT).

My analysis

There have been 16 insider sell transactions and there have not been any insider buy transactions during the last 30 days. The stock is trading at a forward P/E ratio of 510.89. The company is not expecting to be profitable for 2013. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are negative earnings and the intensive insider selling activity.

2. ChemoCentryx (NASDAQ:CCXI), a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered therapeutics to treat autoimmune diseases, inflammatory disorders, and cancer in the United States.

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Insider selling by insider (last 30 days)

  • Markus Cappel sold 12,809 shares on March 15 - April 11 pursuant to a Rule 10b5-1 trading plan. Markus Cappel currently holds 43,750 shares or 0.1% of the company. Markus Cappel has served as Chief Business Officer since February 2007, and Treasurer since August 2004.
  • Petrus Bekker sold 18,889 shares on March 15 - April 11 pursuant to a Rule 10b5-1 trading plan. Petrus Bekker currently holds 53,594 shares or 0.1% of the company. Petrus Bekker has served as Senior Vice President of Clinical and Medical Affairs since February 2009.
  • Thomas Schall sold 20,086 shares on March 15 - April 11 pursuant to a Rule 10b5-1 trading plan. Thomas Schall currently holds 2,178,687 shares or 5.9% of the company. Thomas Schall is the founder of the company and has served as President, Chief Executive Officer and Director since the company commenced operations in 1997 and was appointed Chairman of the Board in April 2012.
  • Roger Lucas sold 5,000 shares on April 3 pursuant to a Rule 10b5-1 trading plan. Roger Lucas currently holds 60,000 shares or 0.2% of the company. Roger Lucas has served as a member of the board of directors since September 1997.
  • Susan Kanaya sold 1,989 shares on March 15 pursuant to a Rule 10b5-1 trading plan. Susan Kanaya currently holds 155,511 options or 0.4% of the company. Susan Kanaya has served as the Senior Vice President, Finance, and Chief Financial Officer since January 2006, and Secretary since February 2006.

Insider selling by calendar month

Here is a table of ChemoCentryx's insider trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 201321,0350
March 2013126,6430
February 2013157,6340
January 201338,7840

There have been 344,096 shares sold and zero shares purchased this year.

Financials

The company reported the full year 2012 financial results on March 13, with the following highlights:

Revenue$5.4 million
Net loss$39.9 million
Cash$119.0 million
Outlook

Projected 2013 cash utilization is expected to range from $40.0 million to $45.0 million.

Upcoming milestones

The company is anticipating the following key milestones in 2013:

  • 12-week interim data from an ongoing 52-week Phase II clinical trial of CCX140 in patients with diabetic nephropathy is expected in the third quarter of 2013; the data set will primarily examine effects of CCX140 on levels of protein in the urine (proteinuria) and hemoglobin A1c (HbA1c).
  • Data from the first of the four pivotal Phase III clinical trials of vercirnon being conducted by partner GSK (SHIELD-1 Induction Study) are expected in the second half of 2013.
  • An option decision will be made on the final program under the alliance with GSK concerning the drug candidate CCX168, currently in a Phase II clinical trial for the treatment of renal vasculitis, anticipated in the fourth quarter 2013.
  • Data from Phase I clinical trials of CCX872 (second generation CCR2 inhibitor) and CCX507 (de novo CCR9 inhibitor) are expected in the first and second half 2013, respectively.

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Competition

If approved for marketing by the FDA, vercirnon, ChemoCentryx's lead drug candidate for the treatment of inflammatory bowel disease [IBD], would compete against existing IBD treatments such as Remicade, Humira, and other TNF- a inhibitors, immunomodulatory drugs and corticosteroids and potentially against other novel IBD drug candidates that are currently in development. Remicade is a humanized monoclonal antibody targeted to TNF- a , indicated for the treatment of Crohn's disease, ulcerative colitis, rheumatoid arthritis, psoriasis, psoriatic arthritis and ankylosing spondylitis. Annual sales for Remicade totaled at least $7.5 billion in 2012. Humira, a similar drug, is also a human monoclonal antibody that acts as a TNF- a inhibitor. Marketed by Abbott Laboratories in the United States and Europe, Humira is approved for the treatment of Crohn's disease, rheumatoid arthritis, psoriatic arthritis and ankylosing spondylitis. Annual worldwide sales for Humira totaled $9.5 billion in 2012.

ChemoCentryx believes that vercirnon offers three distinct potential advantages as compared to currently used biologic therapies such as Remicade and Humira. First, unlike Remicade and Humira which are given by infusion or injection, vercirnon would be administered orally as a capsule or a tablet. ChemoCentryx expects that oral administration of vercirnon will have a positive effect on patient compliance. Second, given that vercirnon is a small molecule which can be synthesized using standard chemistry processes, the molecule will be cheaper to manufacture than biologic agents which require complex and expensive cell based systems to produce a given biologic agent. The lower cost of goods for vercirnon could result in a more favorable pricing structure which, in turn, could lead to pharmaco-economic benefits for patients and healthcare providers. Third, vercirnon's mode of action may not lead to the broad suppression of the patient's immune system which is often seen with TNF- a inhibitors.

My analysis

There have been 11 insider sell transactions and there have not been any insider buy transactions during the last 30 days. The company has enough cash to last for another 2-3 years. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider selling activity.

3. Core-Mark Holding Company (NASDAQ:CORE) markets fresh and broad-line supply solutions to the convenience retail industry in the United States and Canada.

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Insider selling by insider (last 30 days)

  • Michael Walsh sold 21,000 shares on March 13 - April 11 pursuant to a Rule 10b5-1 plan. Michael Walsh currently holds 54,167 shares or 0.5% of the company. Michael Walsh serves as a director of the company.
  • Stacy Loretz-Congdon sold 1,550 shares on April 1 pursuant to a Rule 10b5-1 plan. Stacy Loretz-Congdon currently holds 42,311 shares or 0.4% of the company. Stacy Loretz-Congdon is Senior Vice President and Chief Financial Officer.
  • Christopher Miller sold 542 shares on April 1 pursuant to a Rule 10b5-1 plan. Christopher Miller currently holds 1,181 shares or less than 0.1% of the company. Christopher Miller is Vice President, Chief Accounting Officer.
  • Christopher Walsh sold 4,000 shares on March 20 and currently holds 53,743 shares or 0.5% of the company. Christopher Walsh is Senior Vice President, US Distribution.
  • William Krause sold 5,742 shares on March 19-20 and currently holds 6,073 shares or less than 0.1% of the company. William Krause serves as a director of the company.

Insider selling by calendar month

Here is a table of Core-Mark's insider trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 201311,0920
March 201328,7420
February 201318,0000
January 201328,5200

There have been 86,354 shares sold and zero shares purchased this year.

Financials

The company reported the full year 2012 financial results on March 14 with the following highlights:

Revenue$8.9 billion
Net income$33.9 million
Cash$19.1 million
Debt$84.7 million
Outlook

The company expects annual net sales in 2013 to be between $9.8 billion and $10.0 billion, a 10% to 12% increase. Adjusted EBITDA for 2013 is expected to be between $112 million and $115 million, an 11% to 14% increase which includes some start-up and conversion costs associated with the recent acquisition. Diluted earnings per share for the full year are expected to be between $3.10 and $3.25.

Competition

Core-Mark estimates that, as of December 31, 2012 , there were approximately 300 wholesale distributors serving traditional convenience retailers in the U.S. and Canada. Core-Mark believes McLane Company, a subsidiary of Berkshire Hathaway (NYSE:BRK.B), and Core-Mark are the two largest convenience wholesale distributors (measured by annual sales) in North America. There are two other large regional companies that provide products to specific areas of the country, H.T. Hackney Company in the Southeast and Eby-Brown Company in the Midwest and Mid-Atlantic regions. In addition there are several hundred local distributors serving small regional chains and independent convenience retailers. In Canada, there are two large regional players, aside from Core-Mark, that make up the competitive landscape, Karrys Bros., Limited and Wallace & Carey, Inc.

My analysis

There have been 11 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 18.15 and a forward P/E ratio of 11.61. The company has a book value of $34.96 per share and the stock has a dividend yield of 1.44%. Before entering short this stock, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: 2 Biotechs And A Grocery Store With Recent Intensive Insider Selling