Nordstrom: 7 Different Insiders Have Sold Shares This Month

Mar.28.14 | About: Nordstrom Inc. (JWN)

Summary

Seven insiders sold Nordstrom stock within one month.

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

Six of these seven insiders decreased their holdings by more than 10%.

Nordstrom (NYSE:JWN) offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Daniel Little EVP March 24-25 15,583 Yes 50,517 shares + 92,231 options 9.8%
David Witman EVP March 24-25 13,824 No 15,765 shares 46.7%
Michael Koppel EVP March 24-25 37,126 Yes 75,092 shares 33.1%
Delena Sunday EVP March 19 51,912 No 44,038 shares + 7,035 options 50.4%
Geevy Thomas EVP March 17 19,544 No 45,394 shares 30.1%
Robert Middlemas EVP March 4 10,000 No 18,393 shares 35.2%
Tricia Smith EVP March 4 7,176 No 3,806 shares + 15,603 options 27.0%
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There have been 155,165 shares sold by insiders during the last 30 days. Daniel Little and Michael Koppel 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 Nordstrom's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 155,165 0
February 2014 0 0
January 2014 0 0
December 2013 44,710 0
November 2013 114,649 0
October 2013 6,439 0
September 2013 39,246 0
August 2013 0 0
July 2013 129,261 0
June 2013 49,603 0
May 2013 191,494 0
April 2013 0 0
March 2013 24,965 0
February 2013 0 0
January 2013 0 0
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There have been 755,532 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Nordstrom reported the fiscal 2013 full-year, which ended February 1, results on February 20 with the following highlights:

Revenue $12.5 billion
Net income $734 million
Cash $1.2 billion
Debt $3.1 billion
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The seven insiders sold their shares after these results.

(Source: Earnings presentation)

Outlook

Nordstrom's guidance is as follows:

Q1/2014 FY2014
Total sales growth 3.5%-5.5% 5.5%-7.5%
Same-store sales growth N/A 2%-4%
EPS $0.60-$0.70 $3.75-$3.90
Capital expenditures N/A $840-$880 million
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(Source: Earnings presentation)

Competition

Nordstrom's competitors include Dillard's (NYSE:DDS), Kohl's (NYSE:KSS), and Macy's (NYSE:M). Here is a table comparing these companies.

Company JWN DDS KSS M
Market Cap: 11.72B 3.95B 11.78B 21.31B
Employees: N/A N/A 31,000 N/A
Qtrly Rev Growth (yoy): 0.00 -0.04 -0.04 -0.02
Revenue: 12.54B 6.69B 19.03B 27.93B
Gross Margin: 0.37 0.37 0.36 0.40
EBITDA: 1.78B 809.20M 2.63B 3.78B
Operating Margin: 0.11 0.08 0.09 0.10
Net Income: 734.00M 323.70M 889.00M 1.49B
EPS: 3.71 7.10 4.05 3.86
P/E: 16.65 12.66 13.95 15.13
PEG (5 yr expected): 1.41 0.73 2.40 1.10
P/S: 0.94 0.59 0.61 0.76
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Nordstrom has the highest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
M 0 1,264,860
KSS 0 22,436
DDS 0 5,000
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Macy's has also seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Nordstrom and there have not been any insiders buying Nordstrom during the last 30 days. Six of these seven insiders decreased their holdings by more than 10%. Nordstrom has an insider ownership of 9.70%.

Before going short Nordstrom, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.