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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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Elizabeth AmatoSVPFeb 267,150No29,478 shares + 7,150 options16.3%
Paul AdamsCOOFeb 267,300No6,770 shares51.9%
Gregory HayesCFOFeb 12-2565,926No66,887 shares49.6%
Michael MaurerPresident, Sikorsky AircraftFeb 2511,300No17,100 shares39.8%
Charles GillSVPFeb 2410,000No27,981 shares26.3%

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.

MonthInsider selling / sharesInsider buying / shares
February 2014101,6760
January 201433,0240
December 201300
November 201322,0000
October 201300
September 2013146,0330
August 201360,4000
July 201353,0040
June 20136,0000
May 20135,9080
April 201300
March 201332,6500
February 2013133,4070
January 201384,8210

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


United Technologies' 2014 guidance is as follows:

Revenue~$64 billion

(click to enlarge)

(Source: Earnings presentation)


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

Market Cap:107.10B95.84B256.99B
Qtrly Rev Growth (yoy):
Gross Margin:
Operating Margin:
Net Income:5.69B4.58B15.18B
PEG (5 yr expected):1.521.681.77

United Technologies has the second-highest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares

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.