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Summary

  • Four insiders sold DuPont stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • All four of these insiders decreased their holdings by more than 10%.

E. I. du Pont de Nemours and Company (NYSE:DD) is a science and engineering company that offers products and patents applications for agriculture, nutrition, electronics and communications, safety and protection, home and construction, transportation and apparel.

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Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Benito CachineroSVPApril 228,532No44,070 shares16.2%
Ellen KullmanCEOApril 2304,559Yes449,317 shares + 236,439 options30.8%
Thomas SagerSVPApril 217,530Yes46,865 shares + 8,766 options24.0%
James BorelEVPApril 130,909Yes158,419 shares + 33,253 options13.9%

There have been 361,530 shares sold by insiders during the last 30 days. Ellen Kullman, Thomas Sager, and James Borel 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 DuPont's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 2014361,5300
March 201479,8840
February 2014228,0030
January 20146720
December 201355,0000
November 201300
October 201300
September 201370,6920
August 2013190,5220
July 2013107,4630
June 201300
May 2013264,6260
April 2013313,8650
March 201300
February 201322,6750
January 2013161,6990

There have been 1,856,631 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of April 2014 has seen the most insider selling.

Financials

DuPont reported the first-quarter financial results on April 17 with the following highlights:

Revenue$10.1 billion
Net income$1.4 billion
Cash$3.8 billion
Debt$11.3 billion

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(Source: Earnings presentation)

Outlook

DuPont's 2014 guidance is as follows:

Revenue~$37 billion
EPS$4.20-$4.45

Competition

DuPont's competitors include BASF (OTCQX:BASFY), and The Dow Chemical Company (NYSE:DOW). Here is a table comparing these companies.

CompanyDDBASFYDOW
Market Cap:61.90B103.42B59.93B
Employees:64,000106,76952,731
Qtrly Rev Growth (yoy):-0.030.010.03
Revenue:35.66B95.77B57.08B
Gross Margin:0.370.250.17
EBITDA:5.96B12.48B7.20B
Operating Margin:0.120.090.08
Net Income:2.90B6.27B4.41B
EPS:3.146.823.68
P/E:21.4816.4913.46
PEG (5 yr expected):1.918.761.47
P/S:1.731.081.03

DuPont has the highest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
BASFYN/AN/A
DOW0823,323

Only DuPont has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling DuPont, and there have not been any insiders buying DuPont during the last 30 days. All four of these insiders decreased their holdings by more than 10%. DuPont has an insider ownership of 0.07%.

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

Source: DuPont: 4 Different Insiders Have Sold Shares This Month