In this article, I will feature one tech 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%.
CalAmp Corp. (NASDAQ:CAMP) develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communication and other applications primarily in the United States.
Insider selling during the last 30 days
Here is a table of CalAmp'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|
|Kimberly Alexy||Director||Jan 23||10,000||No||44,931 shares||18.2%|
|Garo Sarkissian||SVP||Jan 2-23||10,000||No||165,762 shares||5.7%|
|Richard Vitelle||CFO||Jan 6||10,000||Yes||322,516 shares + 10,000 options||2.9%|
|Frank Perna||Director||Jan 2||8,300||Yes||257,922 shares||3.1%|
|Michael Burdiek||CEO||Jan 2||10,000||Yes||439,941 shares + 25,000 options||2.1%|
|Larry Wolfe||Director||Jan 2||25,000||No||86,931 shares||22.3%|
There have been 73,300 shares sold by insiders during the last 30 days. Richard Vitelle, Frank Perna, and Michael Burdiek 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 CalAmp's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 566,432 shares sold, and there have been zero shares purchased by insiders since January 2013.
CalAmp reported the fiscal 2014 third-quarter, which ended November 30, financial results on December 23 with the following highlights:
|GAAP net income||$4.2 million|
CalAmp's fiscal 2014 fourth-quarter guidance is as follows:
(Source: January presentation)
|Qtrly Rev Growth (yoy):||0.43||-0.02||0.14|
|PEG (5 yr expected):||1.61||2.08||N/A|
CalAmp 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.
|Company||Insider buying / shares||Insider selling / shares|
Only CalAmp has seen intensive insider selling during the last 30 days.
There have been six different insiders selling CalAmp, and there have not been any insiders buying CalAmp during the last 30 days. Two of these six insiders decreased their holdings by more than 10%. CalAmp has an insider ownership of 4.30%.
There are five analyst buy ratings, one neural rating, and zero sell ratings with an average price target of $30.08. Before going short CalAmp, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are bearish analyst price targets, relatively high P/S ratio, and the intensive insider-selling activity.