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%.
Carrizo Oil & Gas (NASDAQ:CRZO), an independent energy company, engages in the exploration, development, and production of oil and gas primarily in the United States.
Insider selling during the last 30 days
Here is a table of Carrizo Oil & Gas' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|S.P. Johnson||CEO||Nov 1||6,000||Yes||650,837 shares||0.9%|
|Brad Fisher||COO||Oct 4-14||33,401||No||77,529 shares||30.1%|
|Gregory Evans||VP||Oct 4-10||15,383||No||52,574 shares||22.6%|
There have been 54,784 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 Carrizo Oil & Gas' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 189,651 shares sold and there have been zero shares purchased by insiders this year.
Carrizo Oil & Gas reported the second-quarter financial results on August 7 with the following highlights:
|Net income||$37.0 million|
Carrizo Oil & Gas' guidance for the third quarter production is 27,633-29,700 boe/d.
Carrizo Oil & Gas has the highest 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|
Only Carrizo Oil & Gas has seen intensive insider selling during the past 30 days.
There have been three different insiders selling Carrizo Oil & Gas and there have not been any insiders buying Carrizo Oil & Gas during the past 30 days. Two of these three insiders decreased their holdings by more than 10%. Carrizo Oil & Gas has an insider ownership of 8.90%.
Carrizo Oil & Gas is trading at a P/E ratio of 21.15 and a forward P/E ratio of 12.76. The company has a book value of $16.43 per share.
Carrizo Oil & Gas has a $36 price target from the Point and Figure chart. I believe there is an opportunity for a short entry with the $36 price target. I would place a stop loss at $48, which is the 4-year high. The two main reasons for the proposed short entry are bearish Point and Figure chart, and the intensive insider selling activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in CRZO over 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.