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In this article, I will feature one bank 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%.

The PNC Financial Services Group (NYSE:PNC) operates as a diversified financial services company in the United States and internationally.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of PNC's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Neil HallEVPJan 2298,133No32,243 shares + 6,667 options71.6%
Michael HannonEVPJan 2158,000No46,491 shares + 25,000 options44.8%
Joseph GuyauxSVCJan 22136,584No

56,697 shares

70.7%
Orlando EspositoEVPJan 9-164,310Yes18,620 shares18.8%
Joan GulleyEVPJan 22,000Yes12,696 shares13.6%

There have been 299,027 shares sold by insiders during the last 30 days. Orlando Esposito and Joan Gulley sold shares pursuant to a Rule 10b5-1 plan. 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 PNC's insider-trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
January 2014299,0270
December 2013208,5070
November 20134,2000
October 201360,7590
September 201391,4000
August 201380,0000
July 2013159,9620
June 201332,2200
May 2013496,3460
April 2013429,8040
March 201322,5000
February 201337,0130
January 201354,9420

There have been 1,976,680 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

PNC reported the full-year 2013 financial results on January 16 with the following highlights:

Revenue$16.0 billion
Net income$4.2 billion
Book value$72.21 per share
Tangible book value$54.68 per share

(click to enlarge)

(Source: Earnings presentation)

Outlook

PNC expects first quarter net interest income to be down modestly compared to the fourth quarter of 2013.

(click to enlarge)

(Source: Earnings presentation)

Competition

PNC's competitors include Bank of America Corporation (NYSE:BAC), and
JPMorgan Chase & Co. (NYSE:JPM). Here is a table comparing these companies.

CompanyPNCBACJPM
Market Cap:43.28B176.10B223.16B
Employees:N/A242,117251,196
Qtrly Rev Growth (yoy):0.050.280.00
Revenue:15.37B85.39B96.38B
Operating Margin:0.360.200.28
Net Income:3.97B10.08B16.59B
EPS:7.390.904.35
P/E:11.0218.3812.75
PEG (5 yr expected):1.510.611.62
P/S:2.912.232.36

PNC has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

CompanyInsider buying / sharesInsider selling / shares
BAC40,000612,366
JPM

745,086

515,034

Only PNC has seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling PNC, and there have not been any insiders buying PNC during the last 30 days. All five of these insiders decreased their holdings by more than 10%. PNC has an insider ownership of 0.20%.

Before going short PNC, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are relatively high P/S ratio, and the intensive insider-selling activity.

Source: PNC Financial Services: 5 Different Insiders Have Sold Shares This Year