Notable Large-Cap Insider Selling For The Fourth Week Of June

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Includes: AFL, BMY, CA, GOOG, IT, RTN, SYK
by: StockPandit

There are many different strategies to trade stocks and one of them is to look for insider selling of stocks. Any insider trading from corporate officers, key employees, vice presidents, directors, senior management or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Legal insider trading cannot be based on material non-public information; however, most investors believe that corporate insiders may have better insights into the growth of the company and its proceedings.

In this article, I will focus on notable insider sell transactions from large cap companies (market cap greater than $10 billion) filed at the Securities and Exchange Commission between June 25, 2012 and June 29, 2012. I have also included the key financial positions of each company and insider trading summaries for three-month and 12-month periods. Use this list as a potential starting point for your analysis.

1. Google Inc (GOOG): Google Inc., a technology company, maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. Google has a market cap of $189.12 billion and is currently trading around $580.07 with a 52-week range of $480.60 to $670.25. According to SEC filing, Google had one insider sold a total of 83,193 shares at a total value of $47,271,640 during the previous week. Over the past 3 months, there have been a total of 144 insider transactions with 78 Sell transactions. Key financial metric for Google is given below:

The following chart provides the insider trading summary for 3 month and 12 month periods.

Click to enlarge
(Click to enlarge)

2. Stryker Corporation (SYK): Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. Stryker has a market cap of $20.99 billion and is currently trading around $54.38 with a 52-week range of $43.73 to $60.64. According to SEC filing, Stryker had one insider sold a total of 45,000 shares at a total value of $2,426,747 during the previous week. Over the past 3 months, there have been a total of 66 insider transactions with 66 Sell transactions. Eight week insider sentiment is NEGATIVE. Key financial metric for Stryker is given below:

The following chart provides the insider trading summary for 3 month and 12 month periods.

3. Raytheon Company (RTN): Raytheon Company designs, develops, manufactures, integrates, and supports technological products, services, and solutions for governmental and commercial customers in the United States and internationally. Raytheon Company has a market cap of $18.86 billion and is currently trading around $55.97 with a 52-week range of $38.35 to $56.70. According to SEC filing, Raytheon Company had 2 insiders combine sold a total of 25,135 shares at a total value of $1,371,705 during the previous week. Multiple insider selling are usually a negative sign. Over the past 3 months, there have been a total of 52 insider transactions with 30 Sell transactions. Key financial metric for Raytheon Company is given below:

The following chart provides the insider trading summary for 3 month and 12 month periods.

4. CA, Inc (CA): CA Technologies, together with its subsidiaries, provides enterprise information technology (NYSE:IT) management software and solutions in the United States and internationally. The company operates in three segments: Mainframe Solutions, Enterprise Solutions, and Services. CA has a market cap of $12.80 billion and is currently trading around $26.97 with a 52-week range of $18.60 to $28.00. According to SEC filing, CA had 2 insiders combine sold a total of 21,996 shares at a total value of $568,656 during the previous week. Multiple insider selling are usually a negative sign. Over the past 3 months, there have been a total of 33 insider transactions with 25 Sell transactions. Key financial metric for CA is given below:

The following chart provides the insider trading summary for 3 month and 12 month periods.

5. AFLAC Incorporated (AFL): Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance. AFLAC has a market cap of $19.92 billion and is currently trading around $42.34 with a 52-week range of $31.25 to $50.33. According to SEC filing, AFLAC had one insider sold a total of 11,000 shares at a total value of $442,239 during the previous week. Over the past 3 months, there have been a total of 8 insider transactions with 4 Sell transactions. One week insider sentiment is NEUTRAL and eight week insider sentiment is POSITIVE with a sell/buy ratio of 2.60 and 1.00 respectively. Key financial metric for AFLAC is given below:

The following chart provides the insider trading summary for 3 month and 12 month periods.

6. Bristol-Myers Squibb Company (BMY): Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide. Bristol-Myers has a market cap of $60.72 billion and is currently trading around $35.89 with a 52-week range of $25.69 to $36.34. According to SEC filing, Bristol-Myers had one insider sold a total of 10,000 shares at a total value of $348,050 during the previous week. Over the past 3 months, there have been a total of 28 insider transactions with 27 Sell transactions. Key financial metric for Bristol-Myers is given below:

The following chart provides the insider trading summary for 3 month and 12 month periods.

Insider Sentiment is calculated by adding all insiders direct open market sells and buys (excluding option-related transactions) that have occurred in the time period. If the buys outweigh the sells, it is a POSITIVE sentiment. If the sells outweigh the buys, it is a NEGATIVE sentiment. If the buys and sells are approximately equal or there have been no transactions, then Insider Sentiment is considered as NEUTRAL.

Sell/Buy Ratio is calculated by dividing the total number of insider sales into the total number of buys filed with the SEC each week. The eight-week ratio is a moving average of the weekly ratio. A ratio of less than 2.0 is considered bullish and over 2.5 is bearish. A value below 2.0 with a ratio that has been declining over the previous eight weeks is considered more bullish.

Sources: Some of the data is sourced from Google Finance, Nasdaq, Finviz, Fidelity and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AFL, BMY, CA, GOOG, RTN, SYK over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein 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. It is up to investors to make the correct decision after necessary research.