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Small scale insider selling is not usually a problem. As Peter Lynch pointed out in his book, One Up On Wall Street, insiders sell for various reasons, which is usually not very informative unless they are dumping shares like there is no tomorrow. It often shows that they are not sufficiently confident about the future return of their company. Insiders, especially executives and directors of companies, tend to know their company very well. Tracking their large-amount stock selling activities is a very good point to start for lucrative returns.

This article analyzes insider selling activities when they dump at least $1,000,000 worth of shares and 0.1% of the market cap during the past week, filed at the Securities and Exchange Commission. I have written a short analysis of each company. However, these are not buying and selling recommendations. Of course, insiders could be wrong. It is nevertheless a good starting point to add those stocks to watch list.

On this week's list (6/11-6/15), the most negative companies based on the financial records are AutoZone, ICU Medical, LeapFrog Enterprises, MicroStrategy, Primoris Servicesration, Synopsys, and Tutor Periniration.

AutoZone Inc. (AZO) is a services company, specifically in the industry of auto parts stores. It has a market cap of $14670.00 million. Its stock closed at $385.11 per share last Friday. Over the past week, AutoZone has 3 insiders who sold a total of 63,188 shares at the total value of $24,338,163. Multiple insider sales occasions are usually a negative sign. Its stock price is about 3.51% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. This company's value seems reasonable with a PEG ratio around 1, suggesting its growth is in sync with its valuation. The recent trading volume is below average. In conclusion: It wouldn't surprise me if the company's stock price goes down from here.

Copart, Inc. (CPRT) is a services company, specifically in the industry of auto dealerships. It has a market cap of $2960.00 million. Its stock closed at $23.35 per share last Friday. Over the past week, Copart has one insider who sold a total of 332,716 shares at the total value of $8,071,357. Given that its price is only 16.25% lower than its 52-week high, the stock might be close to the upper bound of its potential. Based on its PEG ratio of 1.29, the stock appears overvalued. Thinning trading volume suggests that trading interest in the company is waning. In summary: It doesn't appear to be at a point of short selling entry yet. Watch.

CPI Aerostructures Inc. (CVU) is an industrial goods company, specifically in the industry of aerospace/defense products & services. It has a market cap of $83.73 million. Its stock closed at $11.91 per share last Friday. Over the past week, CPI Aerostructures has one insider who sold a total of 200,000 shares at the total value of $2,400,000. The shares sold accounted for 2.87% of the company's market cap. Over the past ten days, CPI Aerostructures has seen significantly higher than average trading volume. My thoughts: Considering the insider sales and additional evidence, I'm not very positive about the company's prospect.

Dollar General Corporation (DG) is a services company, specifically in the industry of discount, variety stores. It has a market cap of $17,340.00 million. Its stock closed at $51.48 per share last Friday. Over the past week, Dollar General has 2 insiders who sold a total of 17,767,852 shares at the total value of $803,657,713. Multiple insider sales occasions are usually a negative sign. The shares sold account for 4.63% of the company's market cap. Given that its price is only -1.24% lower than its 52-week high, the stock might be close to the upper bound of its potential. This company's value seems reasonable with a PEG ratio around 1, suggesting its growth is in sync with its valuation. The trading volume has been consolidating recently. My thoughts: It doesn't appear to be at a point of short selling entry yet. Watch.

Delphi Automotive PLC (DLPH) is a consumer goods company, specifically in the industry of auto parts. It has a market cap of $9,370.00 million. Its stock closed at $28.49 per share last Friday. Over the past week, Delphi Automotive PLC has one insider who sold a total of 4,000,000 shares at the total value of $114,000,000. The shares sold account for 1.22% of the company's market cap. Its stock price is about 13.61% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. Thinning trading volume suggests that trading interest in the company is waning. The verdict: It doesn't appear to be at a point of short selling entry yet. Watch.

FleetCor Technologies, Inc. (FLT) is a services company, specifically in the industry of business services. It has a market cap of $3,110.00 million. Its stock closed at $37.51 per share last Friday. Over the past week, FleetCor Technologies has 2 insiders who sold a total of 4,750,000 shares at the total value of $175,512,500. Multiple insider sales occasions are usually a negative sign. The shares sold account for 5.64% of the company's market cap. Given that its price is only 9.18% lower than its 52-week high, the stock might be close to the upper bound of its potential. This company's value seems reasonable with a PEG ratio around 1, suggesting its growth is in sync with its valuation. Over the past ten days, FleetCor Technologies has seen significantly higher than average trading volume. What to do: It doesn't appear to be at a point of short selling entry yet. Watch.

ICU Medical, Inc. (ICUI) is a healthcare company, specifically in the industry of medical instruments & supplies. It has a market cap of $730.43 million. Its stock closed at $51.67 per share last Friday. Over the past week, ICU Medical has one insider who sold a total of 25,000 shares at the total value of $1,266,975. Its stock price is about 4.28% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. Based on its PEG ratio of 2.20, the stock appears overvalued. The trading volume has been consolidating recently. In summary: Shareholders of this company should perhaps sell.

Kinder Morgan, Inc. (KMI) is a basic materials company, specifically in the industry of oil & gas pipelines. It has a market cap of $22,550.00 million. Its stock closed at $31.84 per share last Friday. Over the past week, Kinder Morgan has one insider who sold a total of 36,695,835 shares at the total value of $1,164,358,844. The shares sold account for 5.16% of the company's market cap. Thinning trading volume suggests that trading interest in the company is waning. The verdict: This is likely a stock very low on my watch list.

LeapFrog Enterprises Inc. (LF) is a consumer goods company, specifically in the industry of toys & games. It has a market cap of $671.39 million. Its stock closed at $10.20 per share last Friday. Over the past week, LeapFrog Enterprises has one insider who sold a total of 150,000 shares at the total value of $1,483,200. Given that its price is only 5.38% lower than its 52-week high, the stock might be close to the upper bound of its potential. This company's value seems reasonable with a PEG ratio around 1, suggesting its growth is in sync with its valuation. LeapFrog Enterprises Inc. has a low operating margin of 7.66%. The recent trading volume is below average. The conclusion: The company appears an attractive short candidate.

MicroStrategy Inc. (MSTR) is a technology company, specifically in the industry of business software & services. It has a market cap of $1,350.00 million. Its stock closed at $124.74 per share last Friday. Over the past week, MicroStrategy has 2 insiders who sold a total of 63,000 shares at the total value of $7,650,954. Multiple insider sales occasions are usually a negative sign. I see this company slightly overvalued, reflected in a high PEG ratio. I believe MicroStrategy's operating margin of 2.46%, a negative sign for the company's financial health. The trading volume has been consolidating recently. In summary: If I were the shareholder of this company, I'd perhaps dump my positions too.

MWI Veterinary Supply, Inc. (MWIV) is a services company, specifically in the industry of medical equipment wholesale. It has a market cap of $1,250.00 million. Its stock closed at $99.03 per share last Friday. Over the past week, MWI Veterinary Supply has one insider who sold a total of 19,598 shares at the total value of $1,768,974. Given that its price is only 1.60% lower than its 52-week high, the stock might be close to the upper bound of its potential. Based on its PEG ratio of 1.38, the stock appears overvalued. MWI Veterinary Supply, Inc. has a low operating margin of 4.33%. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this company. It can be positive because ignored stocks tend to be undervalued. What to do: A lot of caution should be used while watching new progress.

Primoris Services Corporation (PRIM) is an industrial goods company, specifically in the industry of heavy construction. It has a market cap of $620.82 million. Its stock closed at $12.03 per share last Friday. Over the past week, Primoris Services has one insider who sold a total of 83,607 shares at the total value of $1,003,785. I believe Primoris Services' operating margin of 7.27% is a negative sign for the company's financial health. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this company. It can be positive because ignored stocks tend to be undervalued. To summarize: Based on its financial records, one can consider short selling the company.

Synopsys Inc. (SNPS) is a technology company, specifically in the industry of semiconductor equipment & materials. It has a market cap of $4270.00 million. Its stock closed at $29.04 per share last Friday. Over the past week, Synopsys has 2 insiders who sold a total of 269,184 shares at the total value of $7,930,158. Multiple insider sales occasions are usually a negative sign. Its stock price is about 6.50% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. Based on its PEG ratio of 1.64, the stock appears overvalued. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this company. It can be positive because ignored stocks tend to be undervalued. What to do: The company looks a good candidate to sell short.

Tutor Perini Corporation (TPC) is an industrial goods company, specifically in the industry of heavy construction. It has a market cap of $559.40 million. Its stock closed at $11.69 per share last Friday. Over the past week, Tutor Perini has one insider who sold a total of 216,043 shares at the total value of $2,451,162. Its price is near the bottom, at around 15.97% off its 52-week low, which makes insider dumping even more alarming. I believe Tutor Perini's operating margin of 4.19%, a negative sign for the company's financial health. The trading volume has been consolidating recently. To conclude: The company makes a decent case for short selling.

Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA) is a services company, specifically in the industry of personal services. It has a market cap of $6030.00 million. Its stock closed at $95.61 per share last Friday. Over the past week, Ulta Salon Cosmetics & Fragrance has one insider who sold a total of 125,825 shares at the total value of $11,786,782. Its stock price is about 2.33% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. I see this company slightly overvalued, reflected in a high PEG ratio. The recent trading volume is below average. My conclusion: I would watch this stock with caution.

Source: Companies Dumped By Insiders