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Small scale insider selling is not usually a problem, because insiders sell for various reasons, such as expense, divorce, diversification, etc. This is usually not very informative unless. However, when insiders start to dump 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.

Aaron's, Inc. (AAN) is a rental & leasing services company. It has a market cap of $2.15 billion. Its stock closed at $28.31 per share on Friday. Over the past week, Aaron's has one insider who sold a total of 202,279 shares at the total value of $5,465,983. Its stock price is not far below its 52-week high, usually a positive technical indicator on the company. The PEG ratio around 1 suggests it's in general fairly valued. Thinning trading volume suggests that trading interest in the company is waning. My thoughts: There aren't enough negative factors to sell this company short based on insider sales alone.

Apartment Investment & Management Co. (AIV) is a financial company, specifically in the industry of REIT - residential. It has a market cap of $3280.00 million. Its stock closed at $27.03 per share on Friday. Over the past week, Apartment Investment & Management Co. has one insider who sold a total of 2,041,934 shares at the total value of $54,601,315. The shares sold account for 1.66% of the company's market cap. The current price is fairly close to its 52-week high. Based on its PEG ratio of 1.50, the stock appears overvalued. The recent trading volume is below average. In summary: I don't think the company's overall financial record weak enough to justify short selling.

Churchill Downs Inc. (CHDN) is a services company, specifically in the industry of gaming activities. It has a market cap of $993.67 million. Its stock closed at $58.79 per share on Friday. Over the past week, Churchill Downs has one insider who sold a total of 51,607 shares at the total value of $3,019,776. Its stock price is 6.95% below 52-week high, a plus on the technical side. Based on its PEG ratio of 2.67, the stock appears overvalued. Recently, the stock is not traded actively. The verdict: Considering the insider sales and additional evidence, I'm not very positive about the company's prospect.

Dorman Products, Inc. (DORM) is a consumer goods company, specifically in the industry of auto parts. It has a market cap of $907.63 million. Its stock closed at $25.09 per share on Friday. Over the past week, Dorman Products has one insider who sold a total of 199,261 shares at the total value of $4,628,974. The current price is fairly close to its 52-week high. 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.

Ebix Inc. (EBIX) is a technology company, specifically in the industry of business software & services. It has a market cap of $727.60 million. Its stock closed at $19.95 per share on Friday. Over the past week, Ebix has one insider who sold a total of 324,799 shares at the total value of $5,684,149. Recently, the stock is not traded actively. The verdict: I cannot recommend short selling this company at this price level.

Energy Partners Ltd. (EPL) is a basic materials company, specifically in the industry of independent oil & gas. It has a market cap of $663.02 million. Its stock closed at $16.90 per share on Friday. Over the past week, Energy Partners Ltd. has one insider who sold a total of 249,116 shares at the total value of $4,074,541. Its stock price is about 8.60% below its 52-week high, usually a positive technical indicator on the company. Based on its PEG ratio of 1.65, 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 final words: I cannot recommend short selling this company at this price level.

ITT Educational Services Inc. (ESI) is a services company, specifically in the industry of education & training services. It has a market cap of $1470.00 million. Its stock closed at $60.75 per share on Friday. Over the past week, ITT Educational Services has one insider who sold a total of 30,000 shares at the total value of $1,696,050. Based on its PEG ratio of 1.96, the stock appears overvalued. Recently, the stock is not traded actively. The final words: I may put it on my watch list, but definitely not on top of the list.

Synageva BioPharma Corp. (GEVA) is a healthcare company, specifically in the industry of biotechnology. It has a market cap of $861.45 million. Its stock closed at $40.56 per share on Friday. Over the past week, Synageva BioPharma has 2 insiders who sold a total of 54,827 shares at the total value of $2,214,537. Multiple insider sales occasions are usually a negative sign. Its stock price is about 1.93% below its 52-week high, usually a positive technical indicator on the company. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. Thinning trading volume suggests that trading interest in the company is waning. To summarize: This stock is OK for your watch list, but not particularly appealing either long or short.

ICU Medical, Inc. (ICUI) is a healthcare company, specifically in the industry of medical instruments & supplies. It has a market cap of $754.90 million. Its stock closed at $53.38 per share on Friday. Over the past week, ICU Medical has one insider who sold a total of 25,000 shares at the total value of $1,335,400. The current price is fairly close to its 52-week high. I see this company slightly overvalued, reflected in a high PEG ratio. The recent trading volume is below average. My thoughts: This is likely a stock very low on my watch list.

IHS Inc. (IHS) is a technology company, specifically in the industry of information & delivery services. It has a market cap of $7090.00 million. Its stock closed at $107.73 per share on 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 12.02% of the company's market cap. Its stock price is about -0.16% below its 52-week high, usually a positive technical indicator on the company. I see this company slightly overvalued, reflected in a high PEG ratio. The trading volume has been consolidating recently. To summarize: I would not sell short the stock at this point.

LeapFrog Enterprises Inc. (LF) is a consumer goods company, specifically in the industry of toys & games. It has a market cap of $684.74 million. Its stock closed at $10.26 per share on Friday. Over the past week, LeapFrog Enterprises has one insider who sold a total of 150,000 shares at the total value of $1,554,300. Its stock price is 6.30% below 52-week high, a plus on the technical side. This company's value seems reasonable with a PEG ratio around 1, suggesting its growth is in sync with its valuation. I believe LeapFrog Enterprises' operating margin of 7.66%, 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 conclude: There isn't enough financial evidence to back up a strong bearish case for this company.

Network Equipment Technologies Inc. (NWK) is a technology company, specifically in the industry of networking & communication devices. It has a market cap of $39.65 million. Its stock closed at $1.31 per share on Friday. Over the past week, Network Equipment Technologies has one insider who sold a total of 1,000,000 shares at the total value of $1,320,000. The shares sold account for 3.33% of the company's market cap. One concern is the company isn't profitable at this point. Over the past ten days, Network Equipment Technologies has seen significantly higher than average trading volume. To summarize: I don't think the company's overall financial record weak enough to justify short selling.

Universal Insurance Holdings Inc. (UVE) is a financial company, specifically in the industry of property & casualty insurance. It has a market cap of $135.09 million. Its stock closed at $3.41 per share on Friday. Over the past week, Universal Insurance Holdings has one insider who sold a total of 1,500,000 shares at the total value of $4,725,000. The shares sold account for 3.50% of the company's market cap. Its price shows near term weakness, close to 52-week low (only 3.02% higher). The recent trading volume is below average. The final words: I cannot recommend short selling this company at this price level.

Source: 13 Companies Dumped By Insiders This Week