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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:

  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%.

Concur Technologies (CNQR) provides integrated travel and expense management solutions for companies worldwide.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Concur's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Francis PelzerCFOFeb 51,000Yes33,869 shares2.9%
John TorreyEVPFeb 43,434No13,285 shares20.5%
Steve SinghCEOFeb 37,500Yes1,010,531 shares0.7%
John LoveEVPFeb 322,680No2,094 shares91.5%
Rajeev SinghCOOJan 1544,471Yes251,797 shares15.0%

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.

MonthInsider selling / sharesInsider buying / shares
February 201434,6140
January 201452,9710
December 201311,0000
November 201318,8750
October 201311,0000
September 201311,0000
August 201347,2040
July 201340,2500
June 201311,0000
May 201352,7620
April 201310,7000
March 201316,7000
February 201395,5550
January 201323,5000

There have been 437,131 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Concur reported the fiscal 2014 first-quarter, which ended December 31, financial results on January 29 with the following highlights:

Revenue$163.1 million
GAAP net loss$24.2 million
Cash$848.9 million
Debt$655.7 million

Outlook

Concur expects 26% revenue growth for the fiscal second quarter.

(click to enlarge)

(Source: Earnings presentation)

Competition

Concur's competitors include International Business Machines (IBM), SAP AG (SAP), and Oracle (ORCL). Here is a table comparing these companies.

CompanyCNQRIBMSAPORCLIndustry Average (Technical & System Software)
Market Cap:6.35B183.40B91.08B165.14B11.27B
Employees:3,800N/A66,572120,0001.61K
Qtrly Rev Growth (yoy):0.33-0.060.020.020.18
Revenue:586.08M99.75B21.77B37.55B2.29B
Gross Margin:0.690.490.700.820.69
EBITDA:35.29M24.30B7.12B16.29B461.80M
Operating Margin:-0.030.200.270.390.05
Net Income:-36.58M16.48B4.31B11.05BN/A
EPS:-0.6614.943.612.350.17
P/E:N/A11.6921.1215.6345.79
PEG (5 yr expected):8.841.101.641.173.76
P/S:10.881.824.114.314.91

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.

CompanyInsider buying / sharesInsider selling / shares
IBM1,000225,001
SAPN/AN/A
ORCL010,180,866

Only Concur has seen intensive insider selling during the last 30 days.

Conclusion

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.

Source: Concur Technologies: 5 Different Insiders Have Sold Shares This Year