Analyzing Monday's Noteworthy Insider Buys And Sells In Consumer, Retail And Airline Sectors

 |  Includes: DAL, JBLU, MAT, QVCA, WEN
by: GuruFundPicks

Insiders reported on Monday that they bought and sold stock in over 400 separate transactions in over 210 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime after mid-week last week. We culled through these 400 or so insider buys and sells (based on SEC Forms 3, 4, and 5 filings), as part of our daily and weekly coverage of insider trades, and present here the most notable trades reported on Monday in the consumer, retail and airlines sectors; notable based on the dollar amount sold, the number of insiders selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock (for more info on how to interpret insider trades, please refer to the end of this article):

Delta Air Lines Inc. (NYSE:DAL): DAL provides international and domestic passenger and cargo transportation in the U.S. and abroad, offering services to 357 destinations in 66 countries. On Monday, two insiders filed SEC Forms 4 indicating that they sold a total of 96,636 shares for $1.1 million. The selling insiders included EVP Glen Hauenstein (46,636 shares) and EVP Michael Campbell (50,000 shares). Overall, insiders have reported selling a total of 0.26 million shares in the past six weeks, an acceleration in selling, given that insiders sold a total of 0.57 million shares in the past year. DAL recently reported a stellar Q4, and is up 15% since the Q4 report and almost 35% YTD, amid what is turning out to be a great year so far for airline stocks. Even after the recent huge surge, DAL still trades at a modest 4 forward P/E and 7.5 P/B compared to the averages of 8.2 and 1.5 for its (large-cap) peers in the airline group.

JetBlue Airways Corp. (NASDAQ:JBLU): JBLU provides passenger airline service to 63 destinations in 21 states, Puerto Rico, and Mexico, and 10 countries in the Caribbean and Latin America. On Monday, CEO Dave Barger filed SEC Form 4 indicating that he sold 15,000 shares for $91,275. This is on top of the 15,000 share sale reported by Mr. Barger just last week. In comparison, insiders sold about 100,000 shares in the past year. JBLU, along with most of the airline companies, has been in a strong rally mode recently, up over 70% from the lows in late November. It trades at a discount 9 forward P/E and 1.1 P/B compared to the averages of 11.0 and 1.6 respectively for its (mid-cap) peers in the airline group.

Mattel Inc. (NASDAQ:MAT): MAT is a designer, manufacturer and marketer of toy products sold worldwide under the Mattel, Fisher-Price and American Girl brands. On Monday, two insiders filed SEC Forms 4 indicating that they exercised options and sold a total of 125,000 shares for $3.9 million. The selling insiders included EVP Thomas Debrowski (100,000 shares) and EVP Ellen Brothers (25,000 shares). In comparison, insiders sold 0.98 million shares in the past year (in direct holdings). MAT is up 15% for the year, and it trades at 12-13 forward P/E and 4.1 P/B compared to averages of 14.2 and 2.1 for its peers in the toy manufacturers group.

Wendy's Co. (NYSE:WEN): WEN franchises and operates a chain of over 10,000 Wendy's and Arby's fast food restaurants in the U.S. and internationally. On Monday, Director Jack Wasserman filed SEC Form 4 indicating that he purchased 2,000 shares for $9,660. Although small, the buy is significant in that insider buying is rare at WEN; in fact, insiders purchased only an additional 5,000 shares of WEN in the past two years. WEN has been stuck in a trading range in the past three-plus years, and it currently trades at 20-21 forward P/E and 1.0 P/B compared to averages of 18.7 and 4.5 for the restaurant group.

Liberty Interactive Corp. (LINTA): LINTA is a holding company engaged in a broad range of electronic retailing, media, communications and entertainment businesses and investments. It is probably better-known by the brands and businesses it owns, including QVC, Encore, Starz, IAC/Interactive Corp.. Expedia and News Corporation. On Monday, Director Michael George filed SEC Form 4 indicating that he exercised options and sold the resulting 50,000 shares for $0.9 million, pursuant to a 10b5-1 plan. In comparison, insiders sold only a total of under 120,000 shares in the past six months. LINTA trades at 18 forward P/E and 1.7 P/B compared to averages of 14.7 and 11.6 for its peers in the cable TV group.


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

Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our 'opinions' and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.