Dana Holding: 3 Different Insiders Have Sold Shares This Year

Jan.24.14 | About: Dana Holding (DAN)

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%.

Dana Holding Corporation (NYSE:DAN) engages in the design, manufacture, and supply of driveline products, technologies, and service parts for vehicle manufacturers worldwide.

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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%
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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
January 2014 106,529 0
December 2013 0 0
November 2013 10,000 0
October 2013 0 0
September 2013 55,397 0
August 2013 100,863 0
July 2013 0 0
June 2013 0 0
May 2013 47,310 0
April 2013 0 0
March 2013 10,000 0
February 2013 0 0
January 2013 26,000 0
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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.

Financials

Dana Holding reported the third-quarter financial results on October 29 with the following highlights:

Revenue $1.7 billion
Net loss $170 million
Cash $1.2 billion
Debt $1.6 billion
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News

Dana Holding reported preliminary full-year 2013 results on January 14 with the following highlights:

Revenue $6.8 billion
Adjusted EBITDA $745 million
Cash $1.4 billion
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(Source: January presentation)

Outlook

Dana Holding's 2014 guidance is as follows:

Revenue $6.8-$6.9 billion
Adjusted EBITDA $760-$770 million
EPS $1.82-$1.86
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(Source: January presentation)

Competition

Dana Holding's competitors include American Axle & Manufacturing Holdings (NYSE:AXL), Magna International (NYSE:MGA), and Meritor (NYSE:MTOR). Here is a table comparing these companies.

Company DAN AXL MGA MTOR
Market Cap: 3.01B 1.54B 19.77B 989.08M
Employees: 23,400 11,300 125,000 9,000
Qtrly Rev Growth (yoy): -0.03 0.17 0.13 -0.08
Revenue: 6.75B 3.11B 33.69B 3.70B
Gross Margin: 0.13 0.14 0.13 0.11
EBITDA: 682.00M 368.10M 2.81B 203.00M
Operating Margin: 0.06 0.06 0.05 0.04
Net Income: 29.00M 384.60M 1.45B -20.00M
EPS: 0.20 5.02 6.23 -0.23
P/E: 104.01 4.07 14.19 N/A
PEG (5 yr expected): 1.43 0.68 0.86 -8.44
P/S: 0.46 0.51 0.59 0.28
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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
AXL 0 90,150
MGA

50

412,189
MTOR 3,269 16,414
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Only Dana Holding has seen intensive insider selling during the last 30 days.

Conclusion

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.