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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%.

The Boeing Company (NYSE:BA) designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide.

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Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Shephard HillSVPFeb 1814,129No76,532 shares15.6%
Raymond ConnerVice ChairmanFeb 1815,828No89,872 shares15.0%
Gregory SmithCFOFeb 53,911No40,031 shares8.9%
John TracySVPFeb 415,000No63,650 shares19.1%

There have been 48,868 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Boeing's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
February 201448,8680
January 201400
December 201300
November 201300
October 201300
September 201300
August 2013480,8000
July 201300
June 201300
May 201333,6961,500
April 201387,6040
March 201300
February 201300
January 201300

There have been 650,968 shares sold, and there have been 1,500 shares purchased by insiders since January 2013.

Financials

Boeing reported the full-year 2013 financial results on January 29, with the following highlights:

Revenue$86.6 billion
Net income$4.6 billion
Cash$15.3 billion
Debt$9.6 billion
Backlog$441 billion

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(Source: Earnings presentation)

Outlook

Boeing's 2014 guidance is as follows:

Revenue$87.5-$90.5 billion
EPS$6.10-$6.30

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(Source: Earnings presentation)

Competition

Boeing's competitors include Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC). Here is a table comparing these companies.

CompanyBALMTNOC
Market Cap:95.84B51.77B26.23B
Employees:168,400115,00065,300
Qtrly Rev Growth (yoy):0.07-0.05-0.05
Revenue:86.62B45.36B24.66B
Gross Margin:0.150.100.22
EBITDA:8.17B5.34B3.62B
Operating Margin:0.070.100.13
Net Income:4.58B2.95B1.95B
EPS:5.969.148.35
P/E:21.6317.7714.49
PEG (5 yr expected):1.682.151.71
P/S:1.101.141.05

Boeing has the highest P/E ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
LMT098,228
NOC0157,499

Lockheed Martin and Northrop Grumman have also seen intensive insider selling during the last 30 days.

Conclusion

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

Boeing has a $96 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $96 price target. I would place a stop loss at $144, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/E ratio, and the intensive insider selling activity.

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Source: Boeing: 4 Different Insiders Have Sold Shares During The Last 30 Days