In this article, I will feature one consumer goods 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%.
Tupperware Brands Corporation (NYSE:TUP) operates as a direct seller of various products across a range of brands and categories through an independent sales force worldwide.
Insider selling during the last 30 days
Here is a table of Tupperware'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 Poteshman||CFO||Nov 1||2,000||Yes||40,576 shares||4.7%|
|Edward Davis||VP||Oct 25||5,000||No||3,503 shares||58.8%|
|Glenn Drake||Group President||Oct 25||19,850||No||11,801 shares||62.7%|
There have been 26,850 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 Tupperware's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 699,205 shares sold and there have been zero shares purchased by insiders this year.
Tupperware reported the third-quarter financial results on October 23 with the following highlights:
|Net income||$49.9 million|
Tupperware's guidance for the fourth quarter and full-year 2013 is as follows:
Tupperware has the highest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Tupperware has seen intensive insider selling during the past 30 days.
There have been three different insiders selling Tupperware and there have not been any insiders buying Tupperware during the past 30 days. Two of these three insiders decreased their holdings by more than 10%. Tupperware has an insider ownership of 1.00%.
Tupperware is trading at a P/E ratio of 19.03 and a forward P/E ratio of 14.82. The company has a book value of $5.19 per share.
Before entering short Tupperware, 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 P/S ratio and the intensive insider selling activity.