American Woodmark: 3 Different Insiders Have Sold Shares During The Last 30 Days

Jan. 6.14 | About: American Woodmark (AMWD)

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:

  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%.

American Woodmark Corporation (NASDAQ:AMWD) engages in the manufacture and distribution of kitchen cabinets and vanities for the remodeling and new home construction markets in the United States.

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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%
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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
December 2013 43,492 0
November 2013 12,000 0
October 2013 73,000 0
September 2013 102,000 0
August 2013 16,457 0
July 2013 19,580 0
June 2013 70,277 0
May 2013 26,233 0
April 2013 15,000 0
March 2013 81,373 0
February 2013 149,467 0
January 2013 9,000 0
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There have been 617,879 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

American Woodmark reported the fiscal 2014 second-quarter, which ended October 31, financial results on November 26 with the following highlights:

Revenue $190.5 million
Net income $5.3 million
Cash $118.5 million
Debt $25.0 million
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Outlook

American Woodmark's business has historically been subject to seasonal influences, with higher sales typically realized in the second and fourth fiscal quarters.

Competition

American Woodmark's competitors include Masco (NYSE:MAS), and Fortune Brands Home & Security (NYSE:FBHS). Here is a table comparing these companies.

Company AMWD MAS FBHS
Market Cap: 587.05M 8.10B 7.55B
Employees: 4,537 30,000 16,100
Qtrly Rev Growth (yoy): 0.19 0.12 0.24
Revenue: 691.05M 8.26B 4.00B
Gross Margin: 0.18 0.26 0.34
EBITDA: 42.29M 782.00M 405.30M
Operating Margin: 0.05 0.07 0.08
Net Income: 19.17M 144.00M 183.90M
EPS: 1.26 0.38 1.07
P/E: 30.27 59.09 42.30
PEG (5 yr expected): N/A N/A 1.07
P/S: 0.88 0.98 1.90
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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
MAS 5,000 0
FBHS

0

54,220
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Only American Woodmark has seen intensive insider selling during the last 30 days.

Conclusion

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.

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.