In this article, I will feature one animal health 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%.
Balchem Corporation (NASDAQ:BCPC) develops, manufactures, and sells specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally.
Insider selling during the last 30 days
Here is a table of Balchem'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|
|Dino Rossi||CEO||Dec 23-24||15,000||Yes||131,457 shares||10.2%|
|Elaine Wedral||Director||Dec 13-18||14,743||No||29,697 shares||33.2%|
|Edward McMillan||Director||Dec 16||8,000||No||29,662 shares||21.2%|
|John Televantos||Director||Dec 13||2,000||No||34,481 shares||5.5%|
|David Ludwig||VP||Dec 10||13,500||Yes||31,025 shares||30.3%|
|Frank Fitzpatrick||CFO||Dec 2||13,500||Yes||55,902 shares||19.5%|
There have been 66,743 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 Balchem's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 590,215 shares sold, and there have been zero shares purchased by insiders this year.
Balchem reported the third-quarter financial results on November 5 with the following highlights:
|Net income||$11.7 million|
(Source: November presentation)
Balchem has the highest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Balchem has seen intensive insider selling during the last 30 days.
There have been six different insiders selling Balchem, and there have not been any insiders buying Balchem during the last 30 days. Five of these six insiders decreased their holdings by more than 10%. Balchem has an insider ownership of 1.40%.
There are three analyst buy ratings, one neutral rating, and zero sell ratings with an average price target of $54.00. Before entering short Balchem, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are bearish analyst price targets, relatively high P/S 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.