In this article, I will feature one energy 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%.
Whiting Petroleum Corporation (NYSE:WLL), an independent oil and gas company, engages in the acquisition, exploration, exploitation, development, and production of crude oil, natural gas liquids, and natural gas in the United States.
Insider selling during the last 30 days
Here is a table of Whiting Petroleum'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|
|Michael Stevens||CFO||Nov 1||23,936||No||49,118 shares + 66,992 options||17.1%|
|Mark Williams||SVP||Oct 28-29||14,250||No||44,582 shares + 14,448 options||19.4%|
|David Seery||VP||Oct 30||3,166||No||28,502 shares + 4,036 options||8.9%|
|Bruce DeBoer||VP||Oct 28||23,556||No||6,461 shares + 5,500 options||66.3%|
|Sherwin Artus||Director||Oct 28-30||6,000||No||49,873 shares||10.7%|
There have been 70,908 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 Whiting Petroleum's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 70,908 shares sold and there have been zero shares purchased by insiders this year. The month of October has seen the most insider selling.
Whiting Petroleum reported the third-quarter financial results on October 23 with the following highlights:
|Net income||$204.1 million|
Whiting Petroleum's guidance for the fourth quarter and full-year 2013 is as follows:
Whiting Petroleum has the highest PEG ratio among these four companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Whiting Petroleum has seen intensive insider selling during the past 30 days.
There have been five different insiders selling Whiting Petroleum and there have not been any insiders buying Whiting Petroleum during the past 30 days. Four of these five insiders decreased their holdings by more than 10%. Whiting Petroleum has an insider ownership of 0.10%.
Whiting Petroleum is trading at a P/E ratio of 15.56 and a forward P/E ratio of 15.41. Whiting Petroleum has a book value of $31.14 per share.
Before entering short Whiting Petroleum, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are relatively high PEG ratio and 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.