- Five insiders sold Lowe's stock within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- All five of these insiders decreased their holdings by more than 10%.
Lowe's Companies (NYSE:LOW) operates as a home improvement retailer.
Insider selling during the last 30 days
Here is a table of Lowe's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Marshall Croom||CRO||April 4||17,305||No||70,226 shares||19.8%|
|Maureen Ausura||CHRO||April 2||146,233||No||80,224 shares + 26,666 options||57.8%|
|Ricky Damron||COO||March 18||67,949||No||168,909 shares + 26,666 options||25.8%|
|Robert Niblock||CEO||March 17-18||80,572||No||565,259 shares||12.5%|
|Gaither Keener||CLO||March 10||116,000||No||65,306 shares + 25,000 options||56.2%|
There have been 428,059 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Lowe's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,114,837 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.
Lowe's reported the full-year 2013, which ended January 31, financial results on February 26 with the following highlights:
|Net income||$2.3 billion|
The five insiders sold their shares after these results.
Lowe's 2014 guidance is as follows:
|Total sales growth||~5%|
|Comparable sales growth||~4%|
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||0.06||-0.03|
|PEG (5 yr expected):||1.08||1.06|
Lowe's is trading at a higher P/E ratio than Home Depot. In Home Depot, there have been 737,860 shares sold and there have been zero shares purchased by insiders this year. Only Lowe's has seen intensive insider selling during the last 30 days.
There have been five different insiders selling Lowe's, and there have not been any insiders buying Lowe's during the last 30 days. All five of these insiders decreased their holdings by more than 10%. Lowe's has an insider ownership of 0.16%.
Before going short Lowe's, 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/E ratio, and the intensive insider-selling activity.