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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, as 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 a watch list.

On this week's list, the most negative companies based on the financial records are Amarin plc, AutoZone, The Fresh Market, Marriott Vacations Worldwide, and Western Refining.

Arlington Asset Investment Corp. (AI) is a financial company, specifically in the industry of investment brokerage - regional. It has a market cap of $221.79 million. Its stock closed at $22.87 per share last Friday. Over the past week, Arlington Asset Investment has one insider who sold a total of 53,616 shares at the total value of $1,233,168. The trading volume has been consolidating recently. To conclude: I do not see enough evidence for establishing a position.

Amarin Corporation plc (AMRN) is a healthcare company, specifically in the industry of drug manufacturers - other. It has a market cap of $1.77 billion. Its stock closed at $12.95 per share last Friday. Over the past week, Amarin plc has one insider who sold a total of 617,100 shares at the total value of $7,968,612. Its stock price is about 13.78% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. Recently, the stock is not traded actively. My thoughts: The company appears an attractive short candidate.

AmSurg Corp. (AMSG) is a healthcare company, specifically in the industry of hospitals. It has a market cap of $930.39 million. Its stock closed at $29.45 per share last Friday. Over the past week, AmSurg has one insider who sold a total of 58,145 shares at the total value of $1,690,275. Given that its price is only 1.47% lower than its 52-week high, the stock might be close to the upper bound of its potential. Based on its PEG ratio of 1.44, the stock appears overvalued. The recent trading volume is below average. The verdict: It doesn't appear to be at a point of short selling entry yet. Watch.

AutoZone Inc. (AZO) is a services company, specifically in the industry of auto parts stores. It has a market cap of $14.33 billion. Its stock closed at $382.09 per share last Friday. Over the past week, AutoZone has three insiders who sold a total of 55,000 shares at the total value of $21,214,191. Multiple insider sales occasions are usually a negative sign. Its stock price is about 4.26% below its 52-week high, technically a positive indicator but can also mean the price has hit the plateau. The PEG ratio around 1 suggests it's in general fairly valued. 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. The conclusion: The company appears an attractive short candidate.

Fidelity National Financial, Inc. (FNF) is a financial company, specifically in the industry of surety & title insurance. It has a market cap of $4.16 billion. Its stock closed at $19.03 per share last Friday. Over the past week, Fidelity National Financial has four insiders who sold a total of 341,959 shares at the total value of $6,619,318. Multiple insider sales occasions are usually a negative sign. Given that its price is only 3.40% lower than its 52-week high, the stock might be close to the upper bound of its potential. Thinning trading volume suggests that trading interest in the company is waning. What to do: I cannot recommend short selling this company at this price level.

HUGHES Telematics, Inc. (OTC:HUTC) is a technology company, specifically in the industry of networking & communication devices. It has a market cap of $562.60 million. Its stock closed at $11.87 per share last Friday. Over the past week, HUGHES Telematics has one insider who sold a total of 621,293 shares at the total value of $7,362,322. The shares sold account for 1.31% of the company's market cap. Given that its price is only 1.00% lower than its 52-week high, the stock might be close to the upper bound of its potential. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. The trading volume has been consolidating recently. To summarize: I may put it on my watch list, but definitely not on top of the list.

IHS Inc. (IHS) is a technology company, specifically in the industry of information & delivery services. It has a market cap of $6.73 billion. Its stock closed at $105.40 per share last Friday. Over the past week, IHS has one insider who sold a total of 8,695,653 shares at the total value of $852,173,994. The shares sold account for 12.66% of the company's market cap. Given that its price is only 1.06% lower than its 52-week high, the stock might be close to the upper bound of its potential. Based on its PEG ratio of 1.46, 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. The verdict: A lot of caution should be used while watching new progress.

LeapFrog Enterprises Inc. (LF) is a consumer goods company, specifically in the industry of toys & games. It has a market cap of $690.75 million. Its stock closed at $10.23 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 $1,514,700. Given that its price is only 6.58% lower than its 52-week high, the stock might be close to the upper bound of its potential. The PEG ratio around 1 suggests it's in general fairly valued. I believe LeapFrog Enterprises' operating margin of 7.66%, a negative sign for the company's financial health. Recently, the stock is not traded actively. To conclude: I would watch this stock with caution.

Montpelier Re Holdings Ltd. (MRH) is a financial company, specifically in the industry of property & casualty insurance. It has a market cap of $1.2 billion. Its stock closed at $20.88 per share last Friday. Over the past week, Montpelier Re Holdings Ltd. has one insider who sold a total of 75,000 shares at the total value of $1,548,375. Given that its price is only 2.88% lower than its 52-week high, the stock might be close to the upper bound of its potential. The trading volume has been consolidating recently. What to do: I do not see enough evidence for establishing a position.

MWI Veterinary Supply, Inc. (MWIV) is a services company, specifically in the industry of medical equipment wholesale. It has a market cap of $1.27 billion. Its stock closed at $99.55 per share last Friday. Over the past week, MWI Veterinary Supply has one insider who sold a total of 52,290 shares at the total value of $5,097,983. Its stock price is about 1.08% 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. MWI Veterinary Supply, Inc. has a low operating margin of 4.33%. Recently, the stock is not traded actively. My thoughts: I may put it on my watch list, but definitely not on top of the list.

SIRIUS XM Radio Inc. (SIRI) is a services company, specifically in the industry of broadcasting - radio. It has a market cap of $7.18 billion. Its stock closed at $1.89 per share last Friday. Over the past week, SIRIUS XM Radio has one insider who sold a total of 4,100,000 shares at the total value of $7,503,000. The PEG ratio around 1 suggests it's in general fairly valued. The trading volume has been consolidating recently. My thoughts: I would watch this stock with caution.

The Fresh Market, Inc. (TFM) is a services company, specifically in the industry of grocery stores. It has a market cap of $2.53 billion. Its stock closed at $52.69 per share last Friday. Over the past week, The Fresh Market has one insider who sold a total of 2,876,243 shares at the total value of $143,797,768. The shares sold account for 5.68% of the company's market cap. Given that its price is only 10.85% lower than its 52-week high, the stock might be close to the upper bound of its potential. I see this company slightly overvalued, reflected in a high PEG ratio. I believe The Fresh Market's operating margin of 7.84%, a negative sign for the company's financial health. Trading is fairly active with this company lately, reflected in elevated volume. The final words: If I were the shareholder of this company, I'd perhaps dump my positions too.

Tiffany & Co. (TIF) is a services company, specifically in the industry of jewelry stores. It has a market cap of $6.62 billion. Its stock closed at $52.28 per share last Friday. Over the past week, Tiffany & Co. has one insider who sold a total of 525,000 shares at the total value of $28,082,250. Its price is only around 0.15% off its 52-week low. It is rare that insiders are dumping at such a low level of stock price. The situation can become worse. The recent trading volume is below average. What to do: This is likely a stock very low on my watch list.

Tutor Perini Corporation (TPC) is an industrial goods company, specifically in the industry of heavy construction. It has a market cap of $552.30 million. Its stock closed at $11.64 per share last Friday. Over the past week, Tutor Perini has one insider who sold a total of 99,532 shares at the total value of $1,107,791. Its price is only around 15.48% off its 52-week low. It is rare that insiders are dumping at such a low level of stock price. The situation can become worse. I believe Tutor Perini's operating margin of 4.19%, 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. What to do: This stock is OK for your watch list, but not particularly appealing either long or short.

Marriott Vacations Worldwide Corp. (VAC) is a services company, specifically in the industry of resorts & casinos. It has a market cap of $1.05 billion. Its stock closed at $30.70 per share last Friday. Over the past week, Marriott Vacations Worldwide has one insider who sold a total of 75,080 shares at the total value of $2,106,744. Given that its price is only 8.74% lower than its 52-week high, the stock might be close to the upper bound of its potential. One concern is the company isn't profitable at this point. Recently, the stock is not traded actively. What to do: This can be a profitable short selling play.

Western Refining, Inc. (WNR) is a basic materials company, specifically in the industry of oil & gas refining & marketing. It has a market cap of $1.93 billion. Its stock closed at $21.39 per share last Friday. Over the past week, Western Refining has three insiders who sold a total of 193,807 shares at the total value of $4,003,113. Multiple insider sales occasions are usually a negative sign. Given that its price is only 1.66% lower than its 52-week high, the stock might be close to the upper bound of its potential. I believe Western Refining's operating margin of 7.81%, a negative sign for the company's financial health. Recently, the stock is not traded actively. In conclusion: The company makes a decent case for short selling.

Source: 16 Companies Dumped By Insiders