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. (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.