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Summary

  • 4 insiders sold Everest Re's stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 3 of these 4 insiders decreased their holdings by more than 10%.

Everest Re Group (NYSE:RE) provides reinsurance and insurance products.
(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Mark de SaramEVPApr 15-May 17,683No33,087 shares18.8%
Joseph TarantoChairmanApril 28-3069,310No330,008 shares17.4%
John DunneDirectorApril 28500No8,829 shares5.4%
John WeberDirectorApril 286,000No8,006 shares42.8%

There have been 83,493 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Everest Re's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 20141,6830
April 201481,8100
March 201400
February 201400
January 201400
December 201300
November 20139440
October 201300
September 201300
August 201300
July 201300
June 20138000
May 20134,3280
April 201300
March 201300
February 20135,0000
January 20135,0000

There have been 99,565 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

Everest Re reported the first-quarter financial results on April 23 with the following highlights:

Revenue$1.3 billion
Net income$293.9 million
Book value$152.8 per share

The four insiders sold shares after these results.

(click to enlarge)

(Source: Investor presentation)

Competition

Everest Re's competitors include XL Group (NYSE:XL) and White Mountains Insurance Group (NYSE:WTM). Here is a table comparing these companies.

CompanyREXLWTM
Market Cap:7.34B8.71B3.70B
Employees:1,0634,2911,700
Qtrly Rev Growth (yoy):-0.06-0.04-0.02
Revenue:5.56B7.47B2.27B
Gross Margin:0.270.320.24
EBITDA:N/A1.21BN/A
Operating Margin:0.270.150.15
Net Income:1.16B964.84M289.10M
EPS:24.083.5348.08
P/E:6.629.0312.47
PEG (5 yr expected):0.871.66-3.40
P/S:1.331.161.63
P/B:1.050.850.91

Everest Re has the highest P/B ratio among these three companies.

Here is a table of these competitors' insider activities during the last six months.

CompanyInsider buying / sharesInsider selling / shares
XL0157,481
WTM01,400

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

Conclusion

There have been four different insiders selling Everest Re, and there have not been any insiders buying Everest Re during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Everest Re has an insider ownership of 20.67%.

Before going short Everest Re, 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/B ratio, negative revenue growth, and the intensive insider-selling activity.

Source: Everest Re: 4 Different Insiders Have Sold Shares During The Last 30 Days