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.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Mark de Saram||EVP||Apr 15-May 1||7,683||No||33,087 shares||18.8%|
|Joseph Taranto||Chairman||April 28-30||69,310||No||330,008 shares||17.4%|
|John Dunne||Director||April 28||500||No||8,829 shares||5.4%|
|John Weber||Director||April 28||6,000||No||8,006 shares||42.8%|
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.
|Month||Insider selling / shares||Insider buying / shares|
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.
Everest Re reported the first-quarter financial results on April 23 with the following highlights:
|Net income||$293.9 million|
|Book value||$152.8 per share|
The four insiders sold shares after these results.
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||-0.06||-0.04||-0.02|
|PEG (5 yr expected):||0.87||1.66||-3.40|
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.
|Company||Insider buying / shares||Insider selling / shares|
Only Everest Re has seen intensive insider selling during the last 30 days.
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.
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.