General Motors: 4 Different Insiders Have Sold Shares This Month

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 |  About: General Motors Company (GM), Includes: F, TM
by: Markus Aarnio

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:

  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%.

General Motors Company (NYSE:GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide.

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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%
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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
February 2014 104,078 0
January 2014 0 0
December 2013 0 0
November 2013 0 200
October 2013 0 0
September 2013 30,000,000 0
August 2013 0 0
July 2013 0 0
June 2013 20,000,000 0
May 2013 23,068 500
April 2013 9,530 0
March 2013 1,469 0
February 2013 0 25,000
January 2013 0 0
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There have been 50,138,145 shares sold, and there have been 25,700 shares purchased by insiders since January 2013.

Financials

General Motors reported the full-year 2013 financial results on February 6 with the following highlights:

Revenue $155.4 billion
Net income $3.8 billion
Cash $27.9 billion
Debt $36.2 billion
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(Source: Investor presentation)

Competition

General Motors' competitors include Ford Motor Co. (NYSE:F), and Toyota Motor Corporation (NYSE:TM). Here is a table comparing these companies.

Company GM F TM Industry Average (Auto Manufacturers - Major)
Market Cap: 58.33B 59.80B 184.36B 90.26B
Employees: 219,000 181,000 338,623 552.11K
Qtrly Rev Growth (yoy): 0.03 0.03 0.24 0.00
Revenue: 155.43B 146.90B 317.16B 194.12B
Gross Margin: 0.12 0.06 0.19 0.17
EBITDA: 12.10B 12.70B 46.62B 20.39B
Operating Margin: 0.04 0.06 0.10 0.06
Net Income: 3.77B 7.16B 23.38B N/A
EPS: 2.38 1.76 14.75 3.47
P/E: 15.42 8.60 7.89 11.58
PEG (5 yr expected): 0.54 0.98 0.28 N/A
P/S: 0.37 0.41 0.58 0.47
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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
F 2,500 0
TM N/A N/A
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Only General Motors has seen intensive insider selling during the last 30 days.

Conclusion

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.