In this article, I will feature one media company 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%.
CBS Corporation (CBS) operates as a mass media company in the United States and internationally.
Insider selling during the last 30 days
Here is a table of CBS' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Angeline Straka||SVP||Nov 14||34,707||No||25,486 shares + 8,695 options||50.4%|
|Lawrence Liding||SVP||Nov 14||9,000||No||11,547 shares + 2,268 options||39.4%|
|Leslie Moonves||CEO||Nov 14-15||233,810||No|
|David Andelman||Director||Nov 12||5,093||No||44,131 shares||10.3%|
|Joseph Ianniello||COO||Nov 11||25,253||Yes||144,799 shares + 25,253 options||12.9%|
|Anthony Ambrosio||EVP||Nov 5||12,500||Yes||145,726 shares + 76,010 options||5.3%|
|Louis Briskman||EVP||Nov 1||28,000||Yes||317,820 shares + 114,847 options||6.1%|
There have been 348,363 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 CBS' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 3,490,481 shares sold and there have been zero shares purchased by insiders this year.
CBS reported the third-quarter financial results on November 6 with the following highlights:
|Net income||$494 million|
CBS has the highest P/E ratio among these three companies.
Here is a table of two of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only CBS has seen intensive insider selling during the last 30 days.
There have been seven different insiders selling CBS and there have not been any insiders buying CBS during the last 30 days. Five of these seven insiders decreased their holdings by more than 10%. CBS has an insider ownership of 0.40%.
CBS is trading at a P/E ratio of 20.76, and a forward P/E ratio of 17.00. The company has a book value of $16.04 per share, and the stock has a dividend yield of 0.81%.
Before entering short CBS, 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/E ratio, and the intensive insider selling activity.