In this article, I will feature one consumer stock 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%.
General Motors Company (NYSE:GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide.
Insider selling during the last 30 days
Here is a table of General Motors' insider-trading activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Daniel Akerson||Senior Advisor||Feb 19-20||50,000||No||330,900 shares||13.1%|
|Stephen Girsky||Senior Advisor||Feb 11-18||45,300||No||161,077 shares||22.0%|
|Mark Reuss||EVP||Feb 18||6,793||No||68,489 shares||9.0%|
|Charles Stevens||CFO||Feb 11||1,985||No||659 shares||75.1%|
There have been 104,078 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of General Motors' insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 50,138,145 shares sold, and there have been 25,700 shares purchased by insiders since January 2013.
General Motors reported the full-year 2013 financial results on February 6 with the following highlights:
|Net income||$3.8 billion|
(Source: Investor presentation)
|Company||GM||F||TM||Industry Average (Auto Manufacturers - Major)|
|Qtrly Rev Growth (yoy):||0.03||0.03||0.24||0.00|
|PEG (5 yr expected):||0.54||0.98||0.28||N/A|
General Motors has the highest P/E ratio among these three companies.
Here is a table of these competitors' insider activities during the last four months.
|Company||Insider buying / shares||Insider selling / shares|
Only General Motors has seen intensive insider selling during the last 30 days.
There have been four different insiders selling General Motors, and there have not been any insiders buying General Motors during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. General Motors has an insider ownership of 7.00%.
Before going short General Motors, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are relatively high P/E ratio, 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.