In this article, I will feature one energy 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%.
Kodiak Oil & Gas Corp. (NYSE:KOG) engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas in the United States.
Insider selling during the last 30 days
Here is a table of Kodiak Oil & Gas' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Russ Cunningham||EVP||Dec 27||26,475||No||229,630 shares||9.9%|
|James Henderson||CFO||Dec 26-27||100,000||No||364,780 shares||21.0%|
|Lynn Peterson||CEO||Dec 26-27||499,190||No||3,427,083 shares||12.6%|
There have been 625,665 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 Kodiak Oil & Gas' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,350,665 shares sold, and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.
Kodiak Oil & Gas reported the third-quarter financial results on October 31 with the following highlights:
|Net income||$31.2 million|
Kodiak Oil & Gas' 2014 guidance is as follows:
Kodiak Oil & Gas has the second-highest P/S ratio among these four companies.
(Source: December presentation)
Here is a table of these competitors' insider-trading activities during the last 30 days.
|Company||Insider buying / shares||Insider selling / shares|
Only Kodiak Oil & Gas has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Kodiak Oil & Gas, and there have not been any insiders buying Kodiak Oil & Gas during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Kodiak Oil & Gas has an insider ownership of 2.30%.
Before entering short Kodiak Oil & Gas, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is 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.