In this article, I will feature one investment bank 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%.
Morgan Stanley (MS) provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide.
Insider selling during the last 30 days
Here is a table of Morgan Stanley'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|
|James Rosenthal||COO||Feb 12||33,500||No||308,677 shares||9.8%|
|Paul Wirth||CFO||Feb 11||25,000||No||192,990 shares||11.5%|
|Eric Grossman||CLO||Feb 5||28,929||No||106,251 shares||21.4%|
|Colm Kelleher||President, Inst'l Securities||Jan 29||8,500||No||403,250 shares||2.1%|
There have been 95,929 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Morgan Stanley's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been zero shares purchased, and there have been 376,746 shares sold by insiders since January 2013.
Morgan Stanley reported the full-year 2013 financial results on January 17 with the following highlights:
|Net income||$2.8 billion|
|Book value||$32.29 per share|
|Tangible book value||$27.21 per share|
Morgan Stanley's revenues have been relatively flat during the last three years.
|Qtrly Rev Growth (yoy):||0.12||-0.05|
|PEG (5 yr expected):||0.47||1.91|
Morgan Stanley has a lower insider ownership than Goldman Sachs. Goldman Sachs hasn't seen intensive insider selling during the last 30 days.
There have been four insiders selling Morgan Stanley, and there have not been any insiders buying Morgan Stanley during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Morgan Stanley has an insider ownership of 0.20%.
Morgan Stanley has a book value of $32.29 per share, and the stock is currently trading at $29.91. I am not recommending to short Morgan Stanley below the book value.