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:
- 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%.
Texas Instruments (TXN) engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide.
Insider selling during the last 30 days
Here is a table of Texas Instruments' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|John Szczsponik||SVP||Jan 23-28||100,000||No||243,705 shares||29.1%|
|Brian Crutcher||SVP||Jan 28||50,000||No||515,708 shares||8.8%|
|Robert Novak||SVP||Jan 27||88,850||No|
105,928 shares + 75,985 options
|Gregory Delagi||SVP||Jan 27||100,000||No||345,392 shares + 221,397 options||15.0%|
|Melendy Lovett||SVP||Jan 24||30,000||No||65,455 shares||31.4%|
There have been 368,850 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Texas Instruments' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 4,665,775 shares sold, and there have been zero shares purchased by insiders since January 2013.
Texas Instruments reported the full-year 2013 financial results on January 21 with the following highlights:
|Net income||$2.2 billion|
Texas Instruments' guidance for the first quarter is as follows:
Texas Instruments has the second-highest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities during the last 12 months.
|Company||Insider buying / shares||Insider selling / shares|
Only Texas Instruments has seen intensive insider selling during the last 30 days.
There have been five different insiders selling Texas Instruments, and there have not been any insider buying Texas Instruments during the last 30 days. Four of these five insiders decreased their holdings by more than 10%. Texas Instruments has an insider ownership of 0.30%.
Before going short Texas Instruments, 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.