12 Large-Cap Stocks Insiders And Short Sellers Are Dumping Like Crazy

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 |  Includes: AMGN, CHRW, CPB, CRM, EMC, NEE, PCAR, PCLN, RL, SNDK, VFC, WFM
by: Insider Monkey

Generally insider sales are motivated by diversification or liquidity needs. However, if a stock is sold by a large number of insiders in a short period and is also targeted by short sellers, investors should pay attention to this stock.

We are going to discuss the large cap stocks insiders and short sellers are dumping recently. All companies have at least $10 billion market cap, at least 3% short interest, and the short interest is increasing during the past month. At least three insiders sold each stock during the past three months. The market data is sourced from Fidelity and Finviz.

Company

Symbol

Short %

Chg in short interest

Insiders

WHOLE FOODS

WFM

4.26%

8.56%

18

V.F. CORP

VFC

3.16%

43.52%

10

SANDISK CORP

SNDK

3.32%

6.83%

9

EMC CORP

EMC

4.36%

4.53%

9

SALESFORCE.COM INC

CRM

10.98%

9.42%

7

NEXTERA ENERGY INC

NEE

3.20%

91.23%

6

RALPH LAUREN CORP

RL

3.24%

4.98%

5

PRICELINE.COM INC

PCLN

7.77%

0.69%

5

PACCAR INC

PCAR

3.44%

1.24%

4

CAMPBELL SOUP CO

CPB

4.70%

0.73%

4

C.H. ROBINSON

CHRW

5.41%

1.75%

3

AMGEN INC.

AMGN

4.41%

76.70%

3

Click to enlarge

Whole Foods Market Inc (NASDAQ:WFM) is sold by the most number of corporate insiders. During the past three months, there are 18 insiders who sold WFM. The most recent insider sales occurred on December 1, 2011. On that day, Green Equity Investors sold 124,788 shares at $67.904 per share. Green Equity Investors also sold 559,695 shares at $68.0732 a day earlier. WFM is trading at $70.47 today. It has a market cap of $12.50B and a P/E ratio of 36.08. It has a short interest of 4.26% and the interest was increased by 8.56% over the past month. Andrew Sandler’s Sandler Capital Management decreased its WFM stakes by 45% to $49 million over the third quarter.

Salesforce.com Inc (NYSE:CRM) has the highest open short interest among the stocks listed above. The short interest of CRM is 10.98% and increased by 9.42% over the past month. The stock was sold by seven insiders during the past three months. For example, Graham Smith sold 11500 shares at around $108 per share on December 15. Smith also sold 2000 shares at $122.31/125.17 per share on December 5. Other six insiders also sold the stock at above $100 per share. It seems that they made the right choice as CRM is trading at $96.91 per share today. The stock has an insanely high P/E ratio of 5060. Jim Simons’ Renaissance Technologies sold out its stake in CRM over the third quarter.

The open short interest of Nextera Energy Inc (NYSE:NEE) increased the most during the past month. NEE has a short interest of 3.20%, up 91.23% over the past month. The stock was sold by six insiders in the past three months. Antonio Rodriguez sold 13820 shares at $60 on December 23. Rodriguez also sold 6054 shares at $57.85 on December 15. The other five insiders also sold different amounts of the stock at prices ranging from $54.84 to $58.088 per share. Now NEE is trading at $59.01. Though insiders and short sellers are crazily dumping NEE, there are more than 10 hedge funds opened new NEE positions over the third quarter, including Jim Simons’ Renaissance Technologies, D. E. Shaw’s D E Shaw, Steven Cohen’s SAC Capital Advisors, Cliff Asness’ AQR Capital Management and Clint Carlson’s Carlson Capital.

Other large cap stocks that insiders and short sellers are dumping include Amgen Inc (NASDAQ:AMGN), EMC Corp (NYSE:EMC), Exelon Corp (NYSE:EXC), Dell Inc (NASDAQ:DELL), Lockheed Martin Corp (NYSE:LMT), Priceline.com Inc (NASDAQ:PCLN) and Sysco Corp (NYSE:SYY). We think investors should be cautious when initiating new positions in these stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.