CBS: 7 Different Insiders Have Sold Shares Since November 1

Nov.20.13 | About: CBS Corporation (CBS)

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:

  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%.

CBS Corporation (NYSE:CBS) operates as a mass media company in the United States and internationally.

Click to enlarge

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

1,635,243 shares

12.5%
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%
Click to enlarge

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
November 2013 348,363 0
October 2013 50,629 0
September 2013 83,859 0
August 2013 47,812 0
July 2013 497,366 0
June 2013 287,683 0
May 2013 575,645 0
April 2013 287,683 0
March 2013 808,561 0
February 2013 477,880 0
January 2013 25,000 0
Click to enlarge

There have been 3,490,481 shares sold and there have been zero shares purchased by insiders this year.

Financials

CBS reported the third-quarter financial results on November 6 with the following highlights:

Revenue $3.6 billion
Net income $494 million
Cash $226 million
Debt $6.3 billion
Click to enlarge

Competition

CBS's competitors include Twenty-First Century Fox (NASDAQ:FOXA), Disney (NYSE:DIS), and Time Warner (NYSE:TWX). Here is a table comparing these companies.

Company CBS FOXA DIS TWX
Market Cap: 35.58B 76.97B 125.12B 60.52B
Employees: 20,930 25,600 N/A 34,000
Qtrly Rev Growth (yoy): 0.11 0.18 0.07 0.00
Revenue: 15.07B 28.73B 45.04B 29.39B
Gross Margin: 0.43 0.36 0.21 0.46
EBITDA: 3.68B 6.17B 11.64B 7.93B
Operating Margin: 0.21 0.18 0.21 0.24
Net Income: 1.81B 5.34B 6.14B 3.76B
EPS: 2.85 2.63 3.38 4.11
P/E: 20.76 12.83 20.52 16.30
PEG (5 yr expected): N/A 1.66 1.26 1.49
P/S: 2.37 2.68 2.78 2.06
Click to enlarge
Click to enlarge

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
DIS 0 1,640,043
TWX 7,800 1,608,219
Click to enlarge

Only CBS has seen intensive insider selling during the last 30 days.

Conclusion

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.

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.