CBS: 4 Different Insiders Have Sold Shares This Year

Feb.16.14 | About: CBS Corporation (CBS)

In this article, I will feature one media company 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%.

CBS Corporation (NYSE:CBS) operates as a mass media company in the United States and internationally.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Leslie Moonves CEO Feb 14 500,000 No 1,994,550 shares + 4,500,000 options 7.1%
Joseph Ianniello COO Jan 15-Feb 4 92,000 Yes 144,948 shares + 79,742 options 29.1%
Anthony Ambrosio EVP Jan 28 12,500 Yes

145,731 shares + 26,010 options

6.8%
Gil Schwartz EVP Jan 22 10,129 Yes 68,187 shares + 20,034 options 10.3%
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There have been 614,629 shares sold by insiders during the last 30 days. Joseph Ianniello, Anthony Ambrosio, and Gil Schwartz 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 CBS' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 546,000 0
January 2014 127,129 0
December 2013 120,723 0
November 2013 458,979 0
October 2013 50,629 0
September 2013 83,859 0
August 2013 47,812 0
July 2013 497,366 0
June 2013 287,683 0
May 2013 575,645 0
April 2013 287,683 0
March 2013 808,561 0
February 2013 477,880 0
January 2013 25,000 0
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There have been 4,394,949 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

CBS reported the full-year 2013 financial results on February 12 with the following highlights:

Revenue $15.3 billion
Net income $1.9 billion
Cash $397 million
Debt $6.0 billion
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Competition

CBS' competitors include Twenty-First Century Fox (NASDAQ:FOXA), and Disney (NYSE:DIS). Here is a table comparing these companies.

Company CBS FOXA DIS
Market Cap: 38.98B 73.55B 138.82B
Employees: 20,930 25,600 175,000
Qtrly Rev Growth (yoy): 0.11 0.15 0.09
Revenue: 15.07B 29.79B 46.01B
Gross Margin: 0.43 0.35 0.22
EBITDA: 3.68B 6.10B 12.36B
Operating Margin: 0.21 0.17 0.22
Net Income: 1.81B 5.26B 6.59B
EPS: 2.85 2.14 3.64
P/E: 22.78 15.22 21.78
PEG (5 yr expected): N/A 1.22 1.23
P/S: 2.57 2.44 2.97
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CBS has the highest P/E ratio among these three companies. Only CBS has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling CBS, and there have not been any insiders buying CBS during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. CBS has an insider ownership of 0.40%.

There are 24 analyst buy ratings, six neutral ratings, and zero sell ratings with an average price target of $63. Before going short CBS, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are bearish analyst price targets, and 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.