In this article, I will feature one media 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%.
Gannett (NYSE:GCI) operates as a media and marketing solutions company in the United States and internationally.
Insider selling during the last 30 days
Here is a table of Gannett'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|
|Todd Mayman||SVP||Dec 24||68,750||No||26,471 shares + 41,250 options||50.4%|
|David Lougee||President, Gannett Broadcasting||Dec 24||129,204||No||11,264 shares + 54,500 options||66.3%|
|Maryam Banikarim||SVP||Dec 24||12,500||No||1,944 shares + 12,500 options||46.4%|
There have been 210,454 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 Gannett's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 436,453 shares sold, and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.
Gannett reported the third-quarter financial results on October 21 with the following highlights:
|Net income||$79.7 million|
Gannett 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 Gannett has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Gannett, and there have not been any insiders buying Gannett during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Gannett has an insider ownership of 0.24%.
Before entering short Gannett, 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/S ratio, and the intensive insider-selling activity.