DuPont: 4 Different Insiders Have Sold Shares This Month

| About: E. I. (DD)

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.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Benito Cachinero SVP April 22 8,532 No 44,070 shares 16.2%
Ellen Kullman CEO April 2 304,559 Yes 449,317 shares + 236,439 options 30.8%
Thomas Sager SVP April 2 17,530 Yes 46,865 shares + 8,766 options 24.0%
James Borel EVP April 1 30,909 Yes 158,419 shares + 33,253 options 13.9%
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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.

Month Insider selling / shares Insider buying / shares
April 2014 361,530 0
March 2014 79,884 0
February 2014 228,003 0
January 2014 672 0
December 2013 55,000 0
November 2013 0 0
October 2013 0 0
September 2013 70,692 0
August 2013 190,522 0
July 2013 107,463 0
June 2013 0 0
May 2013 264,626 0
April 2013 313,865 0
March 2013 0 0
February 2013 22,675 0
January 2013 161,699 0
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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
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Competition

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

Company DD BASFY DOW
Market Cap: 61.90B 103.42B 59.93B
Employees: 64,000 106,769 52,731
Qtrly Rev Growth (yoy): -0.03 0.01 0.03
Revenue: 35.66B 95.77B 57.08B
Gross Margin: 0.37 0.25 0.17
EBITDA: 5.96B 12.48B 7.20B
Operating Margin: 0.12 0.09 0.08
Net Income: 2.90B 6.27B 4.41B
EPS: 3.14 6.82 3.68
P/E: 21.48 16.49 13.46
PEG (5 yr expected): 1.91 8.76 1.47
P/S: 1.73 1.08 1.03
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DuPont has the highest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
BASFY N/A N/A
DOW 0 823,323
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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.

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.