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%.
Concur Technologies (CNQR) provides integrated travel and expense management solutions for companies worldwide.
Insider selling during the last 30 days
Here is a table of Concur'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|
|Francis Pelzer||CFO||Feb 5||1,000||Yes||33,869 shares||2.9%|
|John Torrey||EVP||Feb 4||3,434||No||13,285 shares||20.5%|
|Steve Singh||CEO||Feb 3||7,500||Yes||1,010,531 shares||0.7%|
|John Love||EVP||Feb 3||22,680||No||2,094 shares||91.5%|
|Rajeev Singh||COO||Jan 15||44,471||Yes||251,797 shares||15.0%|
There have been 79,085 shares sold by insiders during the last 30 days. Francis Pelzer, Steve Singh, and Rajeev Singh sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Concur's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 437,131 shares sold, and there have been zero shares purchased by insiders since January 2013.
Concur reported the fiscal 2014 first-quarter, which ended December 31, financial results on January 29 with the following highlights:
|GAAP net loss||$24.2 million|
Concur expects 26% revenue growth for the fiscal second quarter.
(Source: Earnings presentation)
|Company||CNQR||IBM||SAP||ORCL||Industry Average (Technical & System Software)|
|Qtrly Rev Growth (yoy):||0.33||-0.06||0.02||0.02||0.18|
|PEG (5 yr expected):||8.84||1.10||1.64||1.17||3.76|
Concur 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 Concur has seen intensive insider selling during the last 30 days.
There have been five different insiders selling Concur, and there have not been any insiders buying Concur during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Concur has an insider ownership of 1.80%.
Before going short Concur, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are relatively high P/S ratio, negative earnings, and the intensive insider-selling activity.