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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:

  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%.

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.

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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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
S.P. JohnsonCEONov 16,000Yes650,837 shares0.9%
Brad FisherCOOOct 4-1433,401No77,529 shares30.1%
Gregory EvansVPOct 4-1015,383No52,574 shares22.6%

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.

MonthInsider selling / sharesInsider buying / shares
November 20136,0000
October 201354,7840
September 20136,0000
August 20136,0000
July 20136,0000
June 201300
May 201376,2010
April 201300
March 201300
February 201326,7700
January 20137,8960

There have been 189,651 shares sold and there have been zero shares purchased by insiders this year.

Financials

Carrizo Oil & Gas reported the second-quarter financial results on August 7 with the following highlights:

Revenue$136.8 million
Net income$37.0 million
Cash$3.8 million
Debt$927.9 million
Production2,565 MBoe

Outlook

Carrizo Oil & Gas' guidance for the third quarter production is 27,633-29,700 boe/d.

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Competition

Carrizo Oil & Gas' competitors include Abraxas Petroleum (NASDAQ:AXAS), Chesapeake Energy (NYSE:CHK), and Statoil ASA (NYSE:STO). Here is a table comparing these companies.

CompanyCRZOAXASCHKSTO
Market Cap:1.73B270.61M18.18B75.11B
Employees:20810112,00023,028
Qtrly Rev Growth (yoy):0.600.350.38-0.02
Revenue:449.77M78.93M14.61B110.64B
Gross Margin:0.880.570.400.39
EBITDA:329.48M31.27M5.29B37.13B
Operating Margin:0.320.070.160.23
Net Income:53.18M-22.05M-1.32B6.66B
EPS:2.01-0.24-2.182.09
P/E:21.15N/AN/A11.31
PEG (5 yr expected):1.28N/A0.30-3.46
P/S:3.863.431.240.68

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.

CompanyInsider buying / sharesInsider selling / shares
AXAS90,2530
CHK642,632232,813

Only Carrizo Oil & Gas has seen intensive insider selling during the past 30 days.

Conclusion

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.

Source: Insiders Are Selling Carrizo Oil & Gas