Stanley Black & Decker: 3 Different Insiders Have Sold Shares This Year

| About: Stanley Black (SWK)

In this article, I will feature one industrial 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%.

Stanley Black & Decker (NYSE:SWK) provides power and hand tools, mechanical access solutions, and electronic security and monitoring systems for various industrial applications primarily in the United States, Canada, Europe, and Asia.

Insider selling during the last 30 days

Here is a table of Stanley Black & Decker's insider-trading activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Michael Bartone VP Feb 12 3,049 No 42,626 shares 6.7%
Bruce Beatt SVP Feb 11 5,673 No 42,992 shares 11.7%
Joseph Voelker SVP Jan 31 6,830 No

23,579 shares + 5,625 options


There have been 15,552 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Stanley Black & Decker's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 8,722 0
January 2014 6,830 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 3,125 0
August 2013 72,067 0
July 2013 75,905 0
June 2013 1,736 0
May 2013 135,335 0
April 2013 0 0
March 2013 174,286 0
February 2013 478,834 0
January 2013 57,284 0

There have been 1,014,124 shares sold, and there have been zero shares purchased by insiders since January 2013.


Stanley Black & Decker reported the full-year 2013 financial results on January 24 with the following highlights:

Revenue $11.0 billion
Net income $490.3 million
Cash $496.2 million
Debt $4.2 billion


Stanley Black & Decker's 2014 guidance is as follows:

Organic revenue growth ~4%
GAAP EPS $5.18-$5.38

(Source: Investor presentation)


Stanley Black & Decker's competitors include Danaher Corp. (NYSE:DHR) and Makita Corporation (NASDAQ:MKTAY). Here is a table comparing these companies.

Market Cap: 12.65B 53.36B 7.33B
Employees: N/A 66,000 12,742
Qtrly Rev Growth (yoy): 0.09 0.06 0.30
Revenue: 11.00B 19.12B 4.66B
Gross Margin: 0.36 0.52 0.36
EBITDA: 1.57B 4.17B 774.40M
Operating Margin: 0.10 0.17 0.14
Net Income: 518.30M 2.70B 489.03M
EPS: 3.08 3.80 3.60
P/E: 26.37 20.11 15.00
PEG (5 yr expected): 1.38 1.54 N/A
P/S: 1.14 2.78 1.54

Stanley Black & Decker has the highest P/E ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last six months.

Company Insider buying / shares Insider selling / shares
DHR 0 128,000

Only Stanley Black & Decker has seen intensive insider selling during the last 30 days.


There have been three different insiders selling Stanley Black & Decker, and there have not been any insiders buying Stanley Black & Decker during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Stanley Black & Decker has an insider ownership of 1.00%.

Stanley Black & Decker has a $56 price target from the Point and Figure chart. I believe there is an opportunity for a short entry with the $56 price target. I would place a stop loss at $92, which is the all-time high. The three main reasons for the proposed short entry are bearish Point and Figure chart, relatively high P/E ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in SWK over 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.