In this article, I will feature one grocery store 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%.
Whole Foods Market (NASDAQ:WFM) operates as a retailer of natural and organic foods.
Insider selling during the last 30 days
Here is a table of Whole Foods Market's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Scott Allshouse||Regional President||Feb 21-24||35,960||No||8,277 shares||81.3%|
|Patrick Bradley||Regional President||Feb 21||3,500||No||5,344 shares + 4,500 options||26.2%|
|Shahid Hassan||Director||Feb 18||5,813||No||34,645 shares||14.4%|
There have been 45,273 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Whole Foods Market's insider-trading activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
(Whole Foods Market had a two-for-one stock split on May 29, 2013)
There have been 935,028 shares sold, and there have been 2,939 shares purchased by insiders since January 2013.
Whole Foods Market reported the fiscal 2014 first-quarter, which ended January 19, financial results on February 12 with the following highlights:
|Net income||$158 million|
Whole Foods Market's revenue growth has been slowing down since 2012.
Whole Foods Market's fiscal 2014 guidance is as follows:
|Comparable store sales growth||5.5%-6.2%|
|Qtrly Rev Growth (yoy):||0.10||0.03||0.24|
|PEG (5 yr expected):||1.92||1.78||2.95|
Whole Foods Market has the second-highest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Whole Foods Market has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Whole Foods Market, and there have not been any insiders buying Whole Foods Market during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Whole Foods Market has an insider ownership of 0.50%.
Whole Foods Market has a $42 price target from the Point and Figure chart. I believe there is an opportunity for a short entry with the $42 price target. I would place a stop loss at $65, which is the all-time high. The two main reasons for the proposed short entry are bearish Point and Figure chart, and the intensive insider-selling activity.