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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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
William CunninghamEVPMarch 38,298Yes8,686 shares48.9%
Laurie ThomsenDirectorFeb 273,889No37,281 shares9.4%
Kenneth SpenceEVPFeb 244,654No34,138 shares12.0%
Jay BenetCFOFeb 205,361Yes57,288 shares8.6%

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.

MonthInsider selling / sharesInsider buying / shares
March 20148,2980
February 2014342,0550
January 201494,0960
December 201330,0000
November 2013134,0390
October 2013108,9810
September 201300
August 201317,5320
July 201370,6230
June 201328,9500
May 2013319,5390
April 201316,5240
March 201337,4230
February 2013371,8220
January 201371,5220

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.

CompanyTRVAIGWRB
Market Cap:29.12B71.14B5.23B
Employees:30,80064,0007,247
Qtrly Rev Growth (yoy):0.04-0.050.06
Revenue:26.08B67.50B6.41B
Gross Margin:0.340.230.44
EBITDA:6.07B15.74B921.74M
Operating Margin:0.200.160.13
Net Income:3.65B9.00B499.92M
EPS:9.746.143.55
P/E:8.497.9211.46
PEG (5 yr expected):1.150.981.83
P/S:1.121.060.81

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.

CompanyInsider buying / sharesInsider selling / shares
AIG026,430
WRB00

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