Dow Chemical: 4 Different Insiders Have Sold Shares During The Last 30 Days

| About: Dow Chemical (DOW)

In this article, I will feature one chemicals company 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%.

The Dow Chemical Company (NYSE:DOW) manufactures and supplies chemical products for use as raw materials in the manufacture of customer products and services worldwide.

Insider selling during the last 30 days

Here is a table of Dow Chemical's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
David Kepler CIO Feb 10 170,455 Yes 252,988 shares + 130,267 options 30.8%
Heinz Haller EVP Feb 7 642,125 Yes 563,990 shares + 83,100 options 49.8%
Ronald Edmonds VP Feb 7 10,000 Yes 66,818 shares 13.0%
Jacqueline Barton Director Feb 7 156 No 34,830 shares 0.4%

There have been 822,736 shares sold by insiders during the last 30 days. David Kepler, Heinz Haller, and Ronald Edmonds 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 Dow Chemical's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 822,736 0
January 2014 154 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 105,028 0
July 2013 0 0
June 2013 0 0
May 2013 48,727 100
April 2013 0 0
March 2013 0 0
February 2013 109,650 0
January 2013 0 0

There have been 1,086,295 shares sold, and there have been 100 shares purchased by insiders since January 2013. The month of February 2014 has seen the most insider selling.


Dow Chemical reported the full-year 2013 financial results on January 29 with the following highlights:

Revenue $57.1 billion
Net income $4.4 billion
Cash $5.9 billion
Debt $16.8 billion

Dow Chemical's revenues peaked in 2011.


Dow Chemical's 2014 guidance is as follows:

(Source: Earnings presentation)


Dow Chemical's competitors include BASF (OTCQX:BASFY), and DuPont (NYSE:DD). Here is a table comparing these companies.

Market Cap: 58.71B 104.95B 61.80B
Employees: 52,731 106,769 64,000
Qtrly Rev Growth (yoy): 0.03 0.01 0.05
Revenue: 57.08B 95.77B 35.94B
Gross Margin: 0.17 0.25 0.37
EBITDA: 7.20B 12.48B 5.87B
Operating Margin: 0.08 0.09 0.12
Net Income: 4.41B 6.27B 2.84B
EPS: 3.68 6.82 5.18
P/E: 13.24 16.75 12.86
PEG (5 yr expected): 1.46 8.94 1.91
P/S: 1.02 1.08 1.70

Dow Chemical has the lowest gross margin among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
DD 0 97,145

DuPont has also seen intensive insider selling during the last 30 days.


There have been four different insiders selling Dow Chemical, and there have not been any insiders buying Dow Chemical during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Dow Chemical has an insider ownership of 0.20%.

Before going short Dow Chemical, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are weak revenue growth, 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.