In this article, I will feature one tech stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:
- The stock was sold by three or more insiders within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- At least two sellers decreased their holdings by more than 10%.
Autodesk (ADSK) operates as a design software and services company worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software.
Insider selling during the last 30 days
Here is a table of Autodesk's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Hallam Dawson||Director||Oct 3-4||40,000||No||76,564 shares||34.3%|
|Kris Halvorsen||Director||Oct 3-4||29,203||No||22,562 shares||56.4%|
|Jan Becker||SVP||Sep 26-Oct 2||75,000||Yes||80,898 shares + 26,611 options||41.1%|
|Pascal Di Fronzo||SVP||Sep 30||423||Yes||34,385 shares||1.2%|
|Carl Bass||CEO||Sep 26||400,000||Yes||372,808 shares||51.8%|
|Crawford Beveridge||Director||Sep 16||7,000||Yes||39,473 shares + 15,000 options||11.4%|
There have been 551,626 shares sold by insiders during the last 30 days. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Autodesk's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,081,621 shares sold and there have been zero shares purchased by insiders this year. The month of September has seen the most insider selling.
Autodesk reported the fiscal 2014 second-quarter, which ended July 31, financial results on August 22 with the following highlights:
|Net income||$61.7 million|
Autodesk's guidance for the fiscal 2014 third quarter, ending October 31, is as follows:
Autodesk has the second lowest P/S ratio among these four companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Adobe Systems has also seen intensive insider selling during the past 30 days.
There have been six different insiders selling Autodesk and there have not been any insiders buying Autodesk during the past 30 days. Five of these six insiders decreased their holdings by more than 10%. Autodesk has an insider ownership of 0.30%.
Autodesk is trading at a P/E ratio of 42.76 and a forward P/E ratio of 25.14. The company has a book value of $9.19 per share.
Before entering short Autodesk, 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.