United Technologies: 5 Different Insiders Have Sold Shares During The Last 30 Days

Mar. 3.14 | About: United Technologies (UTX)

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%.

United Technologies Corporation (NYSE:UTX) provides technology products and services to the building systems and aerospace industries worldwide.

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Insider selling during the last 30 days

Here is a table of United Technologies' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Elizabeth Amato SVP Feb 26 7,150 No 29,478 shares + 7,150 options 16.3%
Paul Adams COO Feb 26 7,300 No 6,770 shares 51.9%
Gregory Hayes CFO Feb 12-25 65,926 No 66,887 shares 49.6%
Michael Maurer President, Sikorsky Aircraft Feb 25 11,300 No 17,100 shares 39.8%
Charles Gill SVP Feb 24 10,000 No 27,981 shares 26.3%
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There have been 101,676 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of United Technologies' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 101,676 0
January 2014 33,024 0
December 2013 0 0
November 2013 22,000 0
October 2013 0 0
September 2013 146,033 0
August 2013 60,400 0
July 2013 53,004 0
June 2013 6,000 0
May 2013 5,908 0
April 2013 0 0
March 2013 32,650 0
February 2013 133,407 0
January 2013 84,821 0
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There have been 678,923 shares sold, and there have been zero shares purchased by insiders since January 2013.


United Technologies reported the full-year 2013 financial results on January 22 with the following highlights:

Revenue $62.6 billion
Net income $5.7 billion
Cash $4.6 billion
Debt $20.2 billion
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United Technologies' 2014 guidance is as follows:

Revenue ~$64 billion
EPS $6.55-$6.85
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(Source: Earnings presentation)


United Technologies' competitors include Boeing (NYSE:BA), and General Electric (NYSE:GE). Here is a table comparing these companies.

Company UTX BA GE
Market Cap: 107.10B 95.84B 256.99B
Employees: 212,400 168,400 N/A
Qtrly Rev Growth (yoy): 0.02 0.07 0.04
Revenue: 62.63B 86.62B 146.04B
Gross Margin: 0.28 0.15 0.12
EBITDA: 11.13B 8.17B 28.22B
Operating Margin: 0.15 0.07 0.12
Net Income: 5.69B 4.58B 15.18B
EPS: 6.25 5.96 1.36
P/E: 18.73 21.63 18.71
PEG (5 yr expected): 1.52 1.68 1.77
P/S: 1.70 1.10 1.76
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United Technologies has the second-highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
BA 0 48,868
GE 54,000 0
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Boeing has also seen intensive insider selling during the last 30 days.


There have been five different insiders selling United Technologies, and there have not been any insiders buying United Technologies during the last 30 days. All five of these insiders decreased their holdings by more than 10%. United Technologies has an insider ownership of 0.10%.

Before going short United Technologies, 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/S 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.