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%.
Dana Holding Corporation (NYSE:DAN) engages in the design, manufacture, and supply of driveline products, technologies, and service parts for vehicle manufacturers worldwide.
Insider selling during the last 30 days
Here is a table of Dana Holding'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|
|Mark Wallace||EVP||Jan 22||57,834||No||106,363 shares||35.2%|
|Jacqueline Dedo||CSO||Jan 16||44,695||No||61,676 shares + 28,240 options||33.2%|
|Rodney Filcek||SVP||Jan 17||4,000||No||18,955 shares||17.4%|
There have been 106,529 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Dana Holding's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 356,099 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of January 2014 has seen the most insider selling.
Dana Holding reported the third-quarter financial results on October 29 with the following highlights:
|Net loss||$170 million|
Dana Holding reported preliminary full-year 2013 results on January 14 with the following highlights:
|Adjusted EBITDA||$745 million|
(Source: January presentation)
Dana Holding's 2014 guidance is as follows:
|Adjusted EBITDA||$760-$770 million|
(Source: January presentation)
|Qtrly Rev Growth (yoy):||-0.03||0.17||0.13||-0.08|
|PEG (5 yr expected):||1.43||0.68||0.86||-8.44|
Dana Holding has the second-weakest revenue growth among these four companies.
Here is a table of these competitors' insider-trading activities during the last 12 months.
|Company||Insider buying / shares||Insider selling / shares|
Only Dana Holding has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Dana Holding, and there have not been any insiders buying Dana Holding during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Dana Holding has an insider ownership of 0.10%.
Before going short Dana Holding, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are weak revenue growth, and 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.