In this article, I will feature one industrial 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%.
Apogee Enterprises (APOG) engages in the design and development of glass products, services, and systems primarily in North America, Europe, and Brazil.
Insider selling during the last 30 days
Here is a table of Apogee'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|
|David Weiss||Director||Jan 21||10,000||No||31,829 shares||23.9%|
|Robert Marzec||Director||Jan 9||6,373||No||25,291 shares||20.1%|
|John Manning||Director||Jan 3||25,383||No|
|Sara Hays||Director||Jan 6||4,311||No||21,851 shares||16.5%|
|Patricia Beithon||General Counsel||Jan 2-3||22,000||No||178,665 shares||11.0%|
|Bernard Aldrich||Director||Jan 3||7,375||No||24,958 shares||22.8%|
|Gary Johnson||VP||Dec 30||4,687||No||48,937 shares||8.7%|
|James Porter||CFO||Dec 30||5,689||No||117,747 shares||4.6%|
There have been 85,818 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Apogee's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 174,428 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of January 2014 has seen the most insider selling.
Apogee reported the fiscal 2014 third-quarter, which ended November 30, financial results on December 18 with the following highlights:
|Net income||$9.7 million|
(Source: December presentation)
Apogee's fiscal 2014 full-year guidance is as follows:
|Qtrly Rev Growth (yoy):||0.05||0.13||0.11||0.45|
|PEG (5 yr expected):||5.44||N/A||3.14||0.54|
Apogee has the second-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 Apogee has seen intensive insider selling during the last 30 days.
There have been eight different insiders selling Apogee, and there have not been any insiders buying Apogee during the last 30 days. Six of these eight insiders decreased their holdings by more than 10%. Apogee has an insider ownership of 2.60%.
Before going short Apogee, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.