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Summary

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

Cameron International Corporation (NYSE:CAM) provides flow equipment products, systems, and services worldwide.
(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Gary HalversonSVPJune 237,500YesYes67,348 shares + 70,900 options5.1%
Scott RoweVPJune 2010,000YesYes34,442 shares + 53,504 options10.2%
James WrightSVPJune 9-2085,265Yes & NoNo48,158
shares + 18,635 options
56.1%
Baker CunninghamDirectorJune 55,133NoNo68,745
shares
6.9%

There have been 107,898 shares sold by insiders during the last 30 days. Gary Halverson, and Scott Rowe sold their 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 Cameron's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 2014107,8980
May 201481,9550
April 2014100,0000
March 20145,0000
February 201474,4780
January 201458,9980
December 201300
November 201300
October 201318,4530
September 201300
August 201300
July 201300
June 201388,8470
May 201300
April 201300
March 201385,4560
February 2013407,9580
January 2013170,9270

There have been 1,199,970 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June has seen the most insider selling this year.

Financials

Cameron reported the first-quarter financial results on April 24 with the following highlights:

Revenue$2.4 billion
Net income$111.1 million
Cash$1.0 billion
Debt$3.2 billion
Backlog$11.3 billion

The four insiders sold their shares after these results.

Outlook

Cameron's guidance from continuing operations is as follows:

Q2/2014FY2014
EPS$0.84-$0.89$3.80-$4.10

Competition

Cameron's competitors include National Oilwell Varco (NYSE:NOV), and Weatherford International (NYSE:WFT). Here is a table comparing these companies.

CompanyCAMNOVWFT
Market Cap:13.80B35.31B17.70B
Employees:29,00054,98367,000
Qtrly Rev Growth (yoy):0.180.09-0.06
Revenue:10.21B23.34B15.02B
Gross Margin:0.280.240.19
EBITDA:1.49B4.31B1.99B
Operating Margin:0.110.150.04
Net Income:669.50M2.41B-408.00M
EPS:2.815.64-0.53
P/E:24.0614.59N/A
PEG (5 yr expected):0.961.100.47
P/S:1.341.521.16

Cameron has the second-highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
NOV024,910
WFT05,000

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

Conclusion

There have been four different insiders selling Cameron and there have not been any insiders buying Cameron during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Cameron has an insider ownership of 0.81%.

Before going short Cameron, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Source: Cameron International: 4 Different Insiders Have Sold Shares During The Last 30 Days