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:
- 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%.
BB&T Corporation (BBT) operates as a financial holding company that provides various banking and trust services for retail and commercial clients.
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%|
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|
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.
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|
|Qtrly Rev Growth (yoy):||0.02||0.28||-0.06||0.05|
|PEG (5 yr expected):||2.02||0.60||1.59||1.69|
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|
Only BB&T has seen intensive insider selling during the last 30 days.
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.