- 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.
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%|
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|
There have been 1,651,404 shares sold, and there have been zero shares purchased by insiders since January 2013.
Travelers reported the full-year 2013 financial results on January 21 with the following highlights:
|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|
(Source: Earnings presentation)
The four insiders sold their shares after these results.
|Qtrly Rev Growth (yoy):||0.04||-0.05||0.06|
|PEG (5 yr expected):||1.15||0.98||1.83|
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|
Only Travelers has seen intensive insider selling during the last 30 days.
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.
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.