In this article, I will feature one tech 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%.
Compuware Corporation (NASDAQ:CPWR) provides services, software, and practices for information technology organizations worldwide.
Insider selling during the last 30 days
Here is a table of Compuware'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|
|Joseph Angileri||CFO||Dec 2-26||135,000||Yes||176,955 shares + 2,780,000 options||4.4%|
|Faye Nelson||Director||Dec 12||10,000||No||7,730 shares||56.4%|
|William Grabe||Director||Dec 9||40,000||No||137,246 shares||22.6%|
|John Van Siclen||SVP||Dec 9||20,000||Yes||2,130 shares + 360,000 options||5.2%|
|Robert Paul||CEO||Dec 2-9||100,000||Yes||146,139 shares + 110,000 options||28.1%|
|Dennis Archer||Director||Dec 5||10,000||No||200 shares||98.0%|
|Daniel Follis||SVP||Dec 2||10,000||Yes||30,600 shares + 191,120 options||4.3%|
There have been 325,000 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 Compuware's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 568,722 shares sold, and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.
Compuware reported the fiscal 2014 second-quarter, which ended September 30, financial results on October 24 with the following highlights:
|GAAP net income||$16.3 million|
Compuware's fiscal 2014 guidance is as follows:
(Source: Earnings presentation)
Compuware 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 Compuware has seen intensive insider selling during the last 30 days.
There have been seven different insiders selling Compuware, and there have not been any insiders buying Compuware during the last 30 days. Four of these seven insiders decreased their holdings by more than 10%. Compuware has an insider ownership of 0.30%.
Before entering short Compuware, 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.
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.