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

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Leslie MoonvesCEOFeb 14500,000No1,994,550 shares + 4,500,000 options7.1%
Joseph IannielloCOOJan 15-Feb 492,000Yes144,948 shares + 79,742 options29.1%
Anthony AmbrosioEVPJan 2812,500Yes

145,731 shares + 26,010 options

6.8%
Gil SchwartzEVPJan 2210,129Yes68,187 shares + 20,034 options10.3%

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.

MonthInsider selling / sharesInsider buying / shares
February 2014546,0000
January 2014127,1290
December 2013120,7230
November 2013458,9790
October 201350,6290
September 201383,8590
August 201347,8120
July 2013497,3660
June 2013287,6830
May 2013575,6450
April 2013287,6830
March 2013808,5610
February 2013477,8800
January 201325,0000

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

Competition

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

CompanyCBSFOXADIS
Market Cap:38.98B73.55B138.82B
Employees:20,93025,600175,000
Qtrly Rev Growth (yoy):0.110.150.09
Revenue:15.07B29.79B46.01B
Gross Margin:0.430.350.22
EBITDA:3.68B6.10B12.36B
Operating Margin:0.210.170.22
Net Income:1.81B5.26B6.59B
EPS:2.852.143.64
P/E:22.7815.2221.78
PEG (5 yr expected):N/A1.221.23
P/S:2.572.442.97

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.

Source: CBS: 4 Different Insiders Have Sold Shares This Year