In this article, I will feature one consumer stock 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%.
Dr Pepper Snapple Group (NYSE:DPS) operates as a brand owner, manufacturer, and distributor of non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean.
Insider selling during the last 30 days
Here is a table of Dr Pepper Snapple's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Derry Hobson||EVP||Feb 27||3,860||No||7,759 shares + 54,378 options||5.8%|
|Larry Young||CEO||Feb 26-27||147,950||No||250,000 shares + 189,977 options||25.2%|
|Martin Ellen||CFO||Feb 13-27||28,929||No||55,000 shares + 75,644 options||18.1%|
|David Thomas||EVP||Feb 24||5,656||No||31,531 shares + 11,308 options||11.7%|
|Angela Stephens||SVP||Feb 18||4,000||No||4,795 shares||45.5%|
|James Johnston||EVP||Feb 19||54,022||No||84,464 shares||39.0%|
|Rodger Collins||EVP||Feb 18||42,022||No||66,810 shares||38.6%|
There have been 286,439 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Dr Pepper Snapple's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 711,839 shares sold, and there have been 1,000 shares purchased by insiders since January 2013. The month of February 2014 has seen the most insider selling.
Dr Pepper Snapple reported the full-year 2013 financial results on February 12 with the following highlights:
(Source: Earnings presentation)
Dr Pepper Snapple's 2014 guidance is as follows:
|Net sales growth||0%-1%|
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||-0.01||-0.04||0.15||0.01|
|PEG (5 yr expected):||2.21||2.82||2.02||2.36|
Dr Pepper Snapple has the second-weakest revenue growth among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Dr Pepper Snapple has seen intensive insider selling during the last 30 days.
There have been seven different insiders selling Dr Pepper Snapple, and there have not been any insiders buying Dr Pepper Snapple during the last 30 days. Six of these seven insiders decreased their holdings by more than 10%. Dr Pepper Snapple has an insider ownership of 0.10%.
Before going short Dr Pepper Snapple, 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, but may initiate a long position in KO over 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.