In this article, I will feature one consumer 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%.
American Woodmark Corporation (AMWD) engages in the manufacture and distribution of kitchen cabinets and vanities for the remodeling and new home construction markets in the United States.
Insider selling during the last 30 days
Here is a table of American Woodmark'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|
|Steven Dunston||COO||Dec 26-31||19,826||Yes||32,407 shares + 4,174 options||35.1%|
|William Brandt||Director||Dec 4-27||12,000||Yes||2,858,929 shares||0.4%|
|Roger Campbell||SVP||Dec 13||1,666||No||10,284 shares + 3,334 options||10.9%|
There have been 33,492 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 American Woodmark's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 617,879 shares sold, and there have been zero shares purchased by insiders since January 2013.
American Woodmark reported the fiscal 2014 second-quarter, which ended October 31, financial results on November 26 with the following highlights:
|Net income||$5.3 million|
American Woodmark's business has historically been subject to seasonal influences, with higher sales typically realized in the second and fourth fiscal quarters.
American Woodmark has the lowest gross margin among these three companies.
Here is a table of these competitors' insider-trading activities during the last 30 days.
|Company||Insider buying / shares||Insider selling / shares|
Only American Woodmark has seen intensive insider selling during the last 30 days.
There have been three different insiders selling American Woodmark, and there have not been any insiders buying American Woodmark during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. American Woodmark has an insider ownership of 19.10%.
Before entering short American Woodmark, 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.