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 (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.