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

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 |  About: The Travelers Companies, Inc. (TRV), Includes: AIG, WRB
by: Markus Aarnio

Summary

Four insiders sold Travelers stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

Two of these four insiders decreased their holdings by more than 10%.

The Travelers Companies (NYSE:TRV) provides various commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
William Cunningham EVP March 3 8,298 Yes 8,686 shares 48.9%
Laurie Thomsen Director Feb 27 3,889 No 37,281 shares 9.4%
Kenneth Spence EVP Feb 24 4,654 No 34,138 shares 12.0%
Jay Benet CFO Feb 20 5,361 Yes 57,288 shares 8.6%
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There have been 22,202 shares sold by insiders during the last 30 days. William Cunningham and Jay Benet 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 Travelers' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 8,298 0
February 2014 342,055 0
January 2014 94,096 0
December 2013 30,000 0
November 2013 134,039 0
October 2013 108,981 0
September 2013 0 0
August 2013 17,532 0
July 2013 70,623 0
June 2013 28,950 0
May 2013 319,539 0
April 2013 16,524 0
March 2013 37,423 0
February 2013 371,822 0
January 2013 71,522 0
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There have been 1,651,404 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Travelers reported the full-year 2013 financial results on January 21 with the following highlights:

Revenue $26.2 billion
Net income $3.7 billion
Book value $70.15 per share
Adjusted book value $66.41 per share
Tangible book value $55.29 per share
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(Source: Earnings presentation)

The four insiders sold their shares after these results.

Competition

Travelers' competitors include American International Group (NYSE:AIG), and W.R. Berkley Corporation (NYSE:WRB). Here is a table comparing these companies.

Company TRV AIG WRB
Market Cap: 29.12B 71.14B 5.23B
Employees: 30,800 64,000 7,247
Qtrly Rev Growth (yoy): 0.04 -0.05 0.06
Revenue: 26.08B 67.50B 6.41B
Gross Margin: 0.34 0.23 0.44
EBITDA: 6.07B 15.74B 921.74M
Operating Margin: 0.20 0.16 0.13
Net Income: 3.65B 9.00B 499.92M
EPS: 9.74 6.14 3.55
P/E: 8.49 7.92 11.46
PEG (5 yr expected): 1.15 0.98 1.83
P/S: 1.12 1.06 0.81
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Travelers has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities during the last six months.

Company Insider buying / shares Insider selling / shares
AIG 0 26,430
WRB 0 0
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Only Travelers has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Travelers, and there have not been any insiders buying Travelers during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Travelers has an insider ownership of 0.40%.

Travelers has a $69 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $69 price target. I would place a stop loss at $91, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in TRV 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.