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:
- 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%.
CBS Corporation (NYSE:CBS) operates as a mass media company in the United States and internationally.
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
|Gil Schwartz||EVP||Jan 22||10,129||Yes||68,187 shares + 20,034 options||10.3%|
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.
|Month||Insider selling / shares||Insider buying / shares|
There have been 4,394,949 shares sold, and there have been zero shares purchased by insiders since January 2013.
CBS reported the full-year 2013 financial results on February 12 with the following highlights:
|Net income||$1.9 billion|
|Qtrly Rev Growth (yoy):||0.11||0.15||0.09|
|PEG (5 yr expected):||N/A||1.22||1.23|
CBS has the highest P/E ratio among these three companies. Only CBS has seen intensive insider selling during the last 30 days.
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.