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

Jul. 1.14 | About: Cameron International (CAM)

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.
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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Option Exercise & Sale Rule 10b5-1 Current Ownership Decrease In Ownership
Gary Halverson SVP June 23 7,500 Yes Yes 67,348 shares + 70,900 options 5.1%
Scott Rowe VP June 20 10,000 Yes Yes 34,442 shares + 53,504 options 10.2%
James Wright SVP June 9-20 85,265 Yes & No No 48,158
shares + 18,635 options
56.1%
Baker Cunningham Director June 5 5,133 No No 68,745
shares
6.9%
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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.

Month Insider selling / shares Insider buying / shares
June 2014 107,898 0
May 2014 81,955 0
April 2014 100,000 0
March 2014 5,000 0
February 2014 74,478 0
January 2014 58,998 0
December 2013 0 0
November 2013 0 0
October 2013 18,453 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 88,847 0
May 2013 0 0
April 2013 0 0
March 2013 85,456 0
February 2013 407,958 0
January 2013 170,927 0
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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
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The four insiders sold their shares after these results.

Outlook

Cameron's guidance from continuing operations is as follows:

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

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

Company CAM NOV WFT
Market Cap: 13.80B 35.31B 17.70B
Employees: 29,000 54,983 67,000
Qtrly Rev Growth (yoy): 0.18 0.09 -0.06
Revenue: 10.21B 23.34B 15.02B
Gross Margin: 0.28 0.24 0.19
EBITDA: 1.49B 4.31B 1.99B
Operating Margin: 0.11 0.15 0.04
Net Income: 669.50M 2.41B -408.00M
EPS: 2.81 5.64 -0.53
P/E: 24.06 14.59 N/A
PEG (5 yr expected): 0.96 1.10 0.47
P/S: 1.34 1.52 1.16
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Cameron has the second-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
NOV 0 24,910
WFT 0 5,000
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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.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.