BB&T: 12 Different Insiders Have Sold Shares This Year

Jan.27.14 | About: BB&T Corporation (BBT)

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%.

BB&T Corporation (NYSE:BBT) operates as a financial holding company that provides various banking and trust services for retail and commercial clients.

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Insider selling during the last 30 days

Here is a table of BB&T'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
Cynthia Powell EVP Jan 22 7,270 No 32,533 shares + 38,992 options 9.2%
John Allison Director Jan 22 186,545 No 653,212 shares + 950,272 options 10.4%
William Yates EVP Jan 22 8,794 No 93,916 shares + 106,531 options 4.2%
Christopher Henson COO Jan 21 8,938 No 266,028 shares + 471,233 options 1.1%
Steven Wiggs SVP Jan 21 60,746 No 123,346 shares + 293,293 options 12.7%
Ricky Brown EVP Jan 21 9,455 No 247,332 shares + 469,503 options 1.3%
Cynthia Williams EVP Jan 21 2,043 No 31,983 shares + 54,093 options 2.3%
Kelly King CEO Jan 21 87,727 No 676,331 shares + 1,189,244 options 4.5%
Donna Goodrich EVP Jan 21 7,834 No 137,052 shares + 262,474 options 1.9%
Robert Greene EVP Jan 21 47,727 No 192,124 shares + 421,119 options 7.2%
Clarke Starnes EVP Jan 21 5,308 No 172,291 shares + 296,808 options 1.1%
Daryl Bible CFO Jan 21 60,593 No 151,211 shares + 284,131 options 12.2%
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There have been 492,980 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of BB&T's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
January 2014 492,980 0
December 2013 778 0
November 2013 54,607 0
October 2013 208,277 0
September 2013 0 0
August 2013 0 0
July 2013 81,184 0
June 2013 12,000 0
May 2013 144,775 3,850
April 2013 152,029 0
March 2013 0 0
February 2013 47,963 0
January 2013 11,555 0
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There have been 1,206,148 shares sold, and there have been 3,850 shares purchased by insiders since January 2013. The month of January 2014 has seen the most insider selling.

Financials

BB&T reported the full-year 2013 financial results on January 16 with the following highlights:

Interest income $6.7 billion
Net income $1.6 billion
Book value $28.52 per share
Tangible book value $18.08 per share
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Competition

BB&T's competitors include Bank of America (NYSE:BAC), Regions Financial (NYSE:RF), and SunTrust Banks (NYSE:STI). Here is a table comparing these companies.

Company BBT BAC RF STI
Market Cap: 27.04B 174.24B 14.53B 20.40B
Employees: 33,696 242,117 24,255 26,281
Qtrly Rev Growth (yoy): 0.02 0.28 -0.06 0.05
Revenue: 8.96B 85.39B 5.10B 7.51B
Operating Margin: 0.39 0.20 0.32 0.24
Net Income: 1.56B 10.08B 1.10B 1.34B
EPS: 2.19 0.90 0.77 2.41
P/E: 17.47 18.28 13.68 15.79
PEG (5 yr expected): 2.02 0.60 1.59 1.69
P/S: 3.06 2.09 2.92 2.79
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BB&T has the highest P/S ratio 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
BAC 40,000 612,366
RF 0 174,681
STI 20,000 41,685
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Only BB&T has seen intensive insider selling during the last 30 days.

Conclusion

There have been 12 different insiders selling BB&T, and there have not been any insiders buying BB&T during the last 30 days. Three of these 12 insiders decreased their holdings by more than 10%. BB&T has an insider ownership of 0.20%.

Before going short BB&T, 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.

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.