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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:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Kodiak Oil & Gas Corp. (KOG) engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas in the United States.

(click to enlarge)

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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Russ CunninghamEVPDec 2726,475No229,630 shares9.9%
James HendersonCFODec 26-27100,000No364,780 shares21.0%
Lynn PetersonCEODec 26-27499,190No3,427,083 shares12.6%

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.

MonthInsider selling / sharesInsider buying / shares
December 2013625,6650
November 201300
October 201300
September 2013500,0000
August 201300
July 201300
June 201300
May 201300
April 201300
March 201375,0000
February 201375,0000
January 201375,0000

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.

Financials

Kodiak Oil & Gas reported the third-quarter financial results on October 31 with the following highlights:

Revenue$299.6 million
Net income$31.2 million
Cash$18.3 million
Debt$2.2 billion
Production35,400 boe/d

Outlook

Kodiak Oil & Gas' 2014 guidance is as follows:

Production42,000-44,000 boe/d
CAPEX$940 million

Competition

Kodiak Oil & Gas' competitors include Continental Resources (CLR), EOG Resources (EOG), and Marathon Oil (MRO). Here is a table comparing these companies.

CompanyKOGCLREOGMRO
Market Cap:2.96B20.39B45.68B24.52B
Employees:1727532,6503,367
Qtrly Rev Growth (yoy):1.670.600.33-0.06
Revenue:768.97M3.40B13.76B15.74B
Gross Margin:0.790.820.590.68
EBITDA:516.64M2.55B6.86B9.34B
Operating Margin:0.320.430.160.36
Net Income:128.12M851.91M1.11B1.70B
EPS:0.484.634.082.39
P/E:23.2423.9440.9814.73
PEG (5 yr expected):0.310.641.611.53
P/S:3.946.153.361.58

Kodiak Oil & Gas has the second-highest P/S ratio among these four companies.

(click to enlarge)

(Source: December presentation)

Here is a table of these competitors' insider-trading activities during the last 30 days.

CompanyInsider buying / sharesInsider selling / shares
CLR42,5007,445
EOG

6,000

582
MRO067,638

Only Kodiak Oil & Gas has seen intensive insider selling during the last 30 days.

Conclusion

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.

Source: Kodiak Oil & Gas: 3 Different Insiders Have Sold Shares This Month