Apogee Enterprises: 8 Different Insiders Have Sold Shares During The Last 30 Days

Jan.28.14 | About: Apogee Enterprises, (APOG)

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:

  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%.

Apogee Enterprises (NASDAQ:APOG) engages in the design and development of glass products, services, and systems primarily in North America, Europe, and Brazil.

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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

29,937 shares

45.9%
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%
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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
January 2014 75,442 0
December 2013 63,882 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 28,604 0
June 2013 0 0
May 2013 0 0
April 2013 6,500 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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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.

Financials

Apogee reported the fiscal 2014 third-quarter, which ended November 30, financial results on December 18 with the following highlights:

Revenue $199.4 million
Net income $9.7 million
Cash $22.5 million
Debt $20.7 million
Backlog $299.9 million
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(Source: December presentation)

Outlook

Apogee's fiscal 2014 full-year guidance is as follows:

Revenue growth 10%-11%
EPS $0.95-$1.00
Gross margin ~22%
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Competition

Apogee's competitors include Headwaters (NYSE:HW), NCI Building Systems (NYSE:NCS), and PGT, Inc. (NASDAQ:PGTI). Here is a table comparing these companies.

Company APOG HW NCS PGTI
Market Cap: 1.04B 782.76M 1.41B 487.81M
Employees: 3,871 2,355 4,484 1,040
Qtrly Rev Growth (yoy): 0.05 0.13 0.11 0.45
Revenue: 736.76M 702.58M 1.31B 222.48M
Gross Margin: 0.21 0.27 0.21 0.34
EBITDA: 61.10M 107.63M 46.07M 33.17M
Operating Margin: 0.05 0.08 0.01 0.10
Net Income: 24.01M 8.28M -12.89M 24.67M
EPS: 0.83 0.10 -0.29 0.44
P/E: 43.32 104.90 N/A 23.47
PEG (5 yr expected): 5.44 N/A 3.14 0.54
P/S: 1.46 1.15 1.13 2.31
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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
HW 0 52,408
NCS 14,570 10,997,652
PGTI 0 20,664,021
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Only Apogee has seen intensive insider selling during the last 30 days.

Conclusion

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.

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.