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.
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%|
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|
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.
DuPont reported the first-quarter financial results on April 17 with the following highlights:
|Net income||$1.4 billion|
(Source: Earnings presentation)
DuPont's 2014 guidance is as follows:
|Qtrly Rev Growth (yoy):||-0.03||0.01||0.03|
|PEG (5 yr expected):||1.91||8.76||1.47|
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|
Only DuPont has seen intensive insider selling during the last 30 days.
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.