AvalonBay Communities (NYSE:AVB) engages in the development, re-development, acquisition, ownership, and operation of multi-family communities in the United States.
Insider selling during the last 30 days
Here is a table of AvalonBay Communities' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Kevin O'Shea||EVP||April 30||747||No||7,379 shares||9.2%|
|William McLaughlin||EVP||April 30||14,047||No||51,757 shares + 62,176 options||11.0%|
|Stephen Wilson||EVP||April 28||5,831||No||26,313 shares + 22,500 options||10.7%|
|Leo Horey||CAO||April 28||15,012||No||46,221 shares + 46,286 options||14.0%|
There have been 35,637 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of AvalonBay Communities' insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 7,924,064 shares sold, and there have been 6,000 shares purchased by insiders since January 2013.
AvalonBay Communities reported the first-quarter financial results on April 23 with the following highlights:
|Net income||$141.7 million|
|Net debt||$5.8 billion|
The four insiders sold their shares after these results.
AvalonBay Communities' second-quarter guidance is as follows:
|Projected FFO||$1.62-$1.66 per share|
|Qtrly Rev Growth [yoy]:||0.38||0.21||0.00|
|PEG (5 yr expected):||1.92||1.92||2.33|
AvalonBay Communities 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 AvalonBay Communities has seen intensive insider selling during the last 30 days.
There have been four different insiders selling AvalonBay Communities, and there have not been any insiders buying AvalonBay Communities during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. AvalonBay Communities has an insider ownership of 5.92%.
Before going short AvalonBay Communities, 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/E ratio, 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.