In this article, I will feature one consumer 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%.
PVH Corp. (PVH) operates as an apparel company in the United States and internationally.
Insider selling during the last 30 days
Here is a table of PVH'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|
|Francis Duane||CEO, Wholesale Apparel||Dec 11||16,250||No||41,250 shares + 22,450 options||20.3%|
|Emanuel Chirico||Chairman, CEO||Dec 12||500,000||No||104,817 shares||82.7%|
|Paul Murry||President, Calvin Klein||Dec 11||10,355||No||21,072 shares||32.9%|
There have been 526,605 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 PVH's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,279,567 shares sold and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.
PVH reported the third-quarter, which ended November 3, financial results on December 9 with the following highlights:
|Net income||$196.7 million|
PVH's guidance is as follows:
|Revenue (Non-GAAP)||$2.08 billion||$8.24 billion|
PVH has the second-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 PVH has seen intensive insider selling during the last 30 days.
There have been three different insiders selling PVH and there have not been any insiders buying PVH during the last 30 days. All three of these insiders decreased their holdings by more than 10%. PVH has an insider ownership of 0.60%.
PVH is trading at a P/E ratio of 47.38 and a forward P/E ratio of 15.86. The company has a book value of $49.77 per share and the stock has a dividend yield of 0.12%. Before entering short PVH, 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.