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

May. 6.14 | About: Everest Re (RE)

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.

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%
Click to enlarge

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
May 2014 1,683 0
April 2014 81,810 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 944 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 800 0
May 2013 4,328 0
April 2013 0 0
March 2013 0 0
February 2013 5,000 0
January 2013 5,000 0
Click to enlarge

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
Click to enlarge

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.

Company RE XL WTM
Market Cap: 7.34B 8.71B 3.70B
Employees: 1,063 4,291 1,700
Qtrly Rev Growth (yoy): -0.06 -0.04 -0.02
Revenue: 5.56B 7.47B 2.27B
Gross Margin: 0.27 0.32 0.24
EBITDA: N/A 1.21B N/A
Operating Margin: 0.27 0.15 0.15
Net Income: 1.16B 964.84M 289.10M
EPS: 24.08 3.53 48.08
P/E: 6.62 9.03 12.47
PEG (5 yr expected): 0.87 1.66 -3.40
P/S: 1.33 1.16 1.63
P/B: 1.05 0.85 0.91
Click to enlarge

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
XL 0 157,481
WTM 0 1,400
Click to enlarge

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.

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.