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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:

  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%.

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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Kimberly AlexyDirectorJan 2310,000No44,931 shares18.2%
Garo SarkissianSVPJan 2-2310,000No165,762 shares5.7%
Richard VitelleCFOJan 610,000Yes322,516 shares + 10,000 options2.9%
Frank PernaDirectorJan 28,300Yes257,922 shares3.1%
Michael BurdiekCEOJan 210,000Yes439,941 shares + 25,000 options2.1%
Larry WolfeDirectorJan 225,000No86,931 shares22.3%

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.

MonthInsider selling / sharesInsider buying / shares
January 201473,3000
December 201328,3000
November 201334,4400
October 201398,3000
September 201318,3000
August 201340,4530
July 201338,0450
June 201318,3000
May 201374,4940
April 201300
March 20135,0000
February 2013120,0000
January 201317,5000

There have been 566,432 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

CalAmp reported the fiscal 2014 third-quarter, which ended November 30, financial results on December 23 with the following highlights:

Revenue$63.5 million
GAAP net income$4.2 million
Cash$31.1 million
Debt$2.4 million

Outlook

CalAmp's fiscal 2014 fourth-quarter guidance is as follows:

Revenue$60-$63 million
GAAP EPS$0.08-$0.11
Non-GAAP EPS$0.19-$0.23

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(Source: January presentation)

Competition

CalAmp's competitors include Motorola Solutions (NYSE:MSI), and Sharp (OTCPK:SHCAY). Here is a table comparing these companies.

CompanyCAMPMSISHCAY
Market Cap:1.07B16.67B4.14B
Employees:34021,00050,647
Qtrly Rev Growth (yoy):0.43-0.020.14
Revenue:224.45M8.63B34.52B
Gross Margin:0.330.500.17
EBITDA:24.01M1.52B2.47B
Operating Margin:0.080.150.02
Net Income:41.37M1.09B-2.06B
EPS:1.203.95-1.79
P/E:25.5216.30N/A
PEG (5 yr expected):1.612.08N/A
P/S:4.991.960.12

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.

CompanyInsider buying / sharesInsider selling / shares
MSI094,112
SHCAY

N/A

N/A

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

Conclusion

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.

Source: CalAmp: 6 Different Insiders Have Sold Shares This Year