In this article, I will feature one tech 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%.
Google (NASDAQ:GOOG), a technology company, builds products and provides services to organize the information and make it universally accessible and useful.
Insider selling during the last 30 days
Here is a table of Google'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|
|Nikesh Arora||SVP||Oct 30-Nov 6||27,635||Yes||51,408 shares + 120,761 options||13.8%|
|Sergey Brin||Co-Founder||Nov 5||83,334||Yes||23,601,148 shares||0.4%|
|Eric Schmidt||Executive Chairman||Oct 25||46,315||Yes||
5,141,383 shares + 181,840 options
|Shirley Tilghman||Director||Oct 22||1,000||No||5,173 shares + 1,000 options||13.9%|
|Lawrence Page||CEO||Oct 14-17||83,334||Yes||24,273,584 shares||0.3%|
|John Doerr||Director||Oct 15||4,731||Yes||1,330,146 shares||0.4%|
|Patrick Pichette||CFO||Oct 14||145||Yes||54,009 shares + 99,579 options||0.1%|
There have been 246,494 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 Google's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 4,348,180 shares sold and there have been zero shares purchased by insiders this year.
Google reported the third-quarter financial results on October 17 with the following highlights:
|Net income||$3.0 billion|
(Source: Earnings presentation)
Google's P/S ratio is in line with the industry average.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Facebook has also seen intensive insider selling during the past 30 days.
There have been seven different insiders selling Google and there have not been any insiders buying Google during the past 30 days. Two of these seven insiders decreased their holdings by more than 10%.
Google is trading at a P/E ratio of 27.65 and a forward P/E ratio of 19.48. The company has a book value of $248.76 per share.
Before entering short Google, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is 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.