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.
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%|
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|
There have been 755,532 shares sold, and there have been zero shares purchased by insiders since January 2013.
Nordstrom reported the fiscal 2013 full-year, which ended February 1, results on February 20 with the following highlights:
|Net income||$734 million|
The seven insiders sold their shares after these results.
(Source: Earnings presentation)
Nordstrom's guidance is as follows:
|Total sales growth||3.5%-5.5%||5.5%-7.5%|
|Same-store sales growth||N/A||2%-4%|
|Capital expenditures||N/A||$840-$880 million|
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||0.00||-0.04||-0.04||-0.02|
|PEG (5 yr expected):||1.41||0.73||2.40||1.10|
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|
Macy's has also seen intensive insider selling during the last 30 days.
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.