In this article, I will feature one publishing company 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%.
John Wiley & Sons (NYSE:JW.A) provides knowledge and knowledge-based services in areas of research, professional development, and education to customers worldwide.
Insider selling during the last 30 days
Here is a table of John Wiley & Sons' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|William Pesce||Director||Oct 14-18||200,000||No||112,926 shares||63.9%|
|Stephen Smith||CEO||Oct 14||15,764||No||77,367 shares + 1,441 options||16.7%|
|Vincent Marzano||VP||Oct 1||578||No||660 shares||46.7%|
There have been 216,342 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 John Wiley & Sons' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 373,179 shares sold and there have been zero shares purchased by insiders this year. The month of October has seen the most insider selling this year.
John Wiley & Sons reported the fiscal 2014 first-quarter, which ended July 31, financial results on September 9 with the following highlights:
|Net income||$35.9 million|
John Wiley & Sons' guidance for fiscal year 2014 is low-single-digit adjusted revenue growth and adjusted EPS of $2.85 to $2.95.
John Wiley & Sons' competitors include Pearson (NYSE:PSO). Here is a table comparing these two companies.
John Wiley & Sons' P/S ratio is below its direct competitors'.
There have been three different insiders selling John Wiley & Sons and there have not been any insiders buying John Wiley & Sons during the past 30 days. All three of these insiders decreased their holdings by more than 10%. John Wiley & Sons has an insider ownership of 1.00%.
John Wiley & Sons is trading at a P/E ratio of 20.96 and a forward P/E ratio of 14.42. The company has a book value of $17.05 per share and the stock has a dividend yield of 1.61%. Before entering short John Wiley & Sons, 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.