In this article, I will feature one postsecondary education 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%.
Bridgepoint Education (BPI) provides postsecondary education services.
Insider selling during the last 30 days
Here is a table of Bridgepoint Education'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|
|Rodney Sheng||EVP||Dec 2||51,563||Yes||115,333 shares + 381,772 options||9.4%|
|Charlene Dackerman||SVP||Dec 4||6,316||Yes||1,140 shares + 51,179 options||10.8%|
|Jane McAuliffe||EVP||Dec 3||15,270||Yes||2,333 shares + 148,335 options||9.2%|
|Brandon Pope||VP||Dec 2||2,537||No|
491 shares + 18,419 options
|Ryan Craig||Director||Nov 14-19||56,038||Yes||56,038 shares||50.0%|
There have been 131,724 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 Bridgepoint Education's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 141,138 shares sold and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.
Bridgepoint Education reported the third-quarter financial results on November 5 with the following highlights:
|Net income||$10.1 million|
Bridgepoint Education 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 Bridgepoint Education has seen intensive insider selling during the last 30 days.
There have been five different insiders selling Bridgepoint Education and there have not been any insiders buying Bridgepoint Education during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Bridgepoint Education has an insider ownership of 0.40%.
There are three analyst buy ratings, five neutral ratings, and zero sell ratings with an average price target of $18.00. Bridgepoint Education is trading at a P/E ratio of 15.26 and a forward P/E ratio of 28.82. Bridgepoint Education has a book value of $10.14 per share.
Before entering short Bridgepoint Education, I would like to get a bearish confirmation from the Point and Figure chart. The four main reasons for the proposed short entry are relatively high P/S ratio, negative revenue growth, bearish analyst price targets, and the intensive insider-selling activity.