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Small scale insider selling is not usually a problem -- 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.

Apollo Group Inc. (NASDAQ:APOL) is an education & training services company. It has a market cap of $4.14 billion. Its stock closed at $36.55 per share on Friday. Over the past week, Apollo Group Inc. has one insider who sold a total of 150,000 shares at the total value of $5,336,250. At a P/E ratio of 8.75, the stock appears fairly cheap in valuation. This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. Its price/book ratio is 4.51. Apollo Group Inc. has an enterprise value / EBITDA ratio of 3.46. The EV/EBITDA ratio indicates this company is cheap. It has a profit margin of 12.18%. The company had a net income of $535.84 million and EBITDA of $1.04 billion on revenue of $4.4 billion. Its revenue declined by 8.50%, and its net income declined by 36.90% during the most recent quarter. The trading volume has been stable recently. This month, 14.03 million shares are being shorted. Comparing to 14.29 million shares shorted over the previous month, the shared short has decreased by 1%. The short ratio of Apollo Group Inc. is 7.40, accounting for 12.30% of floating shares. During an economic crisis, it gets harder to find jobs. Many job seekers therefore go back to school or attend job training programs in order to increase their chances to land a job. This explains Apollo's great performance over the past a few years. During a recovery, however, the trend reverses and the demand for education and training goes down. As I argued in this article, a full recovery may be exactly what we are in now. For this reason, the macroeconomic environment is very likely against the for-profit education industry. It is definitely high on the watch list for short selling.

BlackRock Kelso Capital Corporation (NASDAQ:BKCC) is an asset management company. It has a market cap of $727.47 million. Its stock closed at $9.89 per share on Friday. Over the past week, BlackRock Kelso Capital has one insider who sold a total of 153,188 shares at the total value of $1,503,344. Its price shows near term strength, close to 52-week high (only 4.35% lower). The PEG ratio is way above one, something to be cautious about. Both its revenue and earnings grew in double digits over the latest quarter, by 32.00% and 12.70%, respectively. Stable trading volume suggests a relatively calm market. This month, 2.56 million shares are being shorted. The short ratio of BlackRock Kelso Capital is 7.20, accounting for 5.00% of floating shares. The trailing dividend yield is 10.40. Over the past five years, the average yield is 13.60.

Cardtronics Inc. (NASDAQ:CATM) is a business services company. It has a market cap of $1.35 billion. Its stock closed at $30.53 per share on Friday. Over the past week, Cardtronics Inc. has 2 insiders who sold a total of 60,000 shares at the total value of $1,803,370. Multiple insider sales occasions are usually a negative sign. The current price is fairly close to its 52-week high. Its P/E ratio of 18.62 is on the expensive side. Investors should use some cautious because of this valuation. Its price/book ratio is 11.38. Cardtronics Inc. has an enterprise value / EBITDA ratio of 11.34. It has a profit margin of 10.86%. The company had a net income of $70.83 million and EBITDA of $159.53 million on revenue of $677.58 million. Both its revenue and earnings grew in double digits over the latest quarter, by 38.40% and 51.70%, respectively. This month, 1.91 million shares are being shorted. The short ratio of Cardtronics Inc. is 7.90, accounting for 4.40% of floating shares. I cannot recommend short selling this company at this price level.

Dick's Sporting Goods Inc. (NYSE:DKS) is a sporting goods stores company. It has a market cap of $5.88 billion. Its stock closed at $49.80 per share on Friday. Over the past week, Dick's Sporting Goods Inc. has 2 insiders who sold a total of 550,702 shares at the total value of $26,622,483. Multiple insider sales occasions are usually a negative sign. Its stock price is 3.58% below 52-week high, a plus on the technical side. Its P/E ratio of 22.15 is on the expensive side. Investors should use some cautious because of this valuation. Its price/book ratio is 3.77. Dick's Sporting Goods Inc. has an enterprise value / EBITDA ratio of 9.60. Its profit margin was 5.27% over the past year. I believe Dick's Sporting Goods Inc.'s operating margin of 8.57% is acceptable. The company had a net income of $283.57 million and EBITDA of $578.01 million on revenue of $5.38 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 15.10% and 52.40%, respectively. This month, 10.59 million shares are being shorted. Comparing to 9.21 million shares shorted over the previous month, the shared short has increased by 14%. The short ratio of Dick's Sporting Goods Inc. is 4.20, accounting for 12.40% of floating shares. I cannot recommend short selling this company at this price level.

Gas Natural Inc. (NYSEMKT:EGAS) is a gas utilities company. It has a market cap of $83.10 million. Its stock closed at $10.19 per share on Friday. Over the past week, Gas Natural Inc. has one insider who sold a total of 700,000 shares at the total value of $7,070,000. The shares sold account for 8.51% of the company's market cap. Its price shows near term weakness, close to 52-week low (only 6.81% higher). Its P/E ratio of 18.98 is on the expensive side. Investors should use some cautious because of this valuation. Gas Natural Inc. has an enterprise value / EBITDA ratio of 8.89. The company had a net income of $4.38 million and EBITDA of $13.87 million on revenue of $92.84 million. Both its revenue and earnings declined in double digits over the latest quarter, by 15.90% and 23.20%, respectively. Over the past ten days, Gas Natural Inc. has seen significantly higher than average trading volume. The trailing dividend yield is 5.30. Over the past five years, the average yield is 4.70. I do not see enough evidence for establishing a position.

The Ensign Group, Inc. (NASDAQ:ENSG) is a long-term care facilities company. It has a market cap of $594.16 million. Its stock closed at $27.84 per share on Friday. Over the past week, The Ensign Group Inc. has 2 insiders who sold a total of 53,511 shares at the total value of $1,522,315. Multiple insider sales occasions are usually a negative sign. It has a reasonable P/E ratio of 12.60. This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. The Ensign Group Inc. has an enterprise value / EBITDA ratio of 6.74. The EV/EBITDA ratio indicates this company is cheap. It has a profit margin of 6.15%. The company had a net income of $47.83 million and EBITDA of $115.52 million on revenue of $777.49 million. Its revenue grew by 10.50%, and its net income improved by 1.20% during the most recent quarter. Over the past ten days, The Ensign Group Inc. has seen significantly higher than average trading volume. This month, 0.91 million shares are being shorted. The short ratio of The Ensign Group Inc. is 11.40, accounting for 5.10% of floating shares. There isn't enough financial evidence to back up a strong bearish case for this company.

GNC Holdings Inc. (NYSE:GNC) is a drug stores company. It has a market cap of $4.49 billion. Its stock closed at $42.14 per share on Friday. Over the past week, GNC Holdings Inc. has one insider who sold a total of 210,000 shares at the total value of $8,533,839. The current price is fairly close to its 52-week high. Its P/E ratio of 24.36 is on the expensive side. Investors should use some cautious because of this valuation. The PEG ratio is slightly above one, not much a concern of valuation. GNC Holdings Inc. has an enterprise value / EBITDA ratio of 13.38. The company had a net income of $185.77 million and EBITDA of $390.08 million on revenue of $2.19 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 23.40% and 543.50%, respectively. This month, 9.41 million shares are being shorted. Comparing to 7.84 million shares shorted over the previous month, the shared short has increased by 20%. The short ratio of GNC Holdings Inc. is 5.00, accounting for 16.00% of floating shares.

Home Properties Inc. (NYSE:HME) is a residential REIT company. It has a market cap of $3.05 billion. Its stock closed at $62.72 per share on Friday. Over the past week, Home Properties Inc. has one insider who sold a total of 50,000 shares at the total value of $3,054,050. Its stock price is about 6.76% below its 52-week high, usually a positive technical indicator on the company. Home Properties Inc. has an enterprise value / EBITDA ratio of 16.74. The valuation is a little too expensive for my taste. Its profit margin was 7.68% over the past year. I like Home Properties Inc.'s operating margin of 31.09%, a good sign for the company's financial health. The company had a net income of $46.02 million and EBITDA of $340.86 million on revenue of $598.89 million. Its revenue grew in double digits over the latest quarter by 13.40%.

LogMeIn, Inc. (NASDAQ:LOGM) is an application software company. It has a market cap of $769.87 million. Its stock closed at $31.26 per share on Friday. Over the past week, LogMeIn Inc. has 2 insiders who sold a total of 45,000 shares at the total value of $1,406,935. Multiple insider sales occasions are usually a negative sign. Its P/E ratio of 134.74 is on the expensive side. The high PEG ratio suggests that the market expectation may be too high to become reality. LogMeIn Inc. has an enterprise value / EBITDA ratio of 36.40. That is very expensive. The company had a net income of $5.90 million and EBITDA of $16.07 million on revenue of $125.11 million. This month, 3.29 million shares are being shorted. The short ratio of LogMeIn Inc. is 11.30, accounting for 20.90% of floating shares. This company's stock isn't appealing to own, but short selling it appears a risky play.

The Medicines Company (NASDAQ:MDCO) is a drug manufacturer. It has a market cap of $1.28 billion. Its stock closed at $23.63 per share on Friday. Over the past week, The Medicines Company has one insider who sold a total of 73,607 shares at the total value of $1,685,968. Its price shows near term strength, close to 52-week high (only 1.54% lower). It has a reasonable P/E ratio of 11.63. The Medicines Company has an enterprise value / EBITDA ratio of 15.66. It is on the expensive side. It has a profit margin of 22.28%. The company had a net income of $111.21 million and EBITDA of $63.73 million on revenue of $499.20 million. Its revenue grew by 12.90%, and its net income declined by 68.80% during the most recent quarter. This month, 4.43 million shares are being shorted. Comparing to 2.56 million shares shorted over the previous month, the shares shorted have increased by 73%. The short ratio of The Medicines Company is 5.90, accounting for 9.20% of floating shares. I see more negatives than positives in this company.

Primoris Services Corporation (NASDAQ:PRIM) is a heavy construction company. It has a market cap of $638.84 million. Its stock closed at $12.41 per share on Friday. Over the past week, Primoris Services has one insider who sold a total of 92,392 shares at the total value of $1,111,568. It has a reasonable P/E ratio of 11.28. Its PEG ratio is 0.72, much lower than one. Primoris Services has an enterprise value / EBITDA ratio of 4.39. The EV/EBITDA ratio indicates this company is cheap. Its profit margin was 4.08% over the past year. Primoris Services Corporation has a decent operating margin of 7.27%. The company had a net income of $56.77 million and EBITDA of $134.49 million on revenue of $1.39 billion. Both its revenue and earnings declined in double digits over the latest quarter, by 18.90% and 14.60%, respectively.

Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR) is a biotechnology company. It has a market cap of $3.19 billion. Its stock closed at $50.23 per share on Friday. Over the past week, Questcor Pharmaceuticals Inc. has one insider who sold a total of 70,000 shares at the total value of $3,717,980. Its stock price is 7.51% below 52-week high, a plus on the technical side. Its P/E ratio of 31.03 is on the expensive side. Investors should use some cautious because of this valuation. Questcor Pharmaceuticals Inc. has an enterprise value / EBITDA ratio of 19.43. The valuation is a little too expensive for my taste. The company had a net income of $106.91 million and EBITDA of $155.23 million on revenue of $277.30 million. Both its revenue and earnings grew in double digits over the latest quarter, by 160.50% and 243.40%, respectively. This month, 18.84 million shares are being shorted. The short ratio of Questcor Pharmaceuticals Inc. is 10.10, accounting for 37.50% of floating shares.

Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) is a generic drugs company. It has a market cap of $3.19 billion. Its stock closed at $54.91 per share on Friday. Over the past week, Salix Pharmaceuticals Ltd. has one insider who sold a total of 119,300 shares at the total value of $6,211,831. The current price is fairly close to its 52-week high. Its P/E ratio of 35.61 is on the expensive side. This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. Salix Pharmaceuticals Ltd. has an enterprise value / EBITDA ratio of 17.13. It has a profit margin of 16.03% and an operating margin of 28.72%, both very healthy. The company had a net income of $97.07 million and EBITDA of $199.26 million on revenue of $605.72 million. Its revenue grew by 61.60% during the most recent quarter. This month, 7.62 million shares are being shorted. The short ratio of Salix Pharmaceuticals Ltd. is 10.00, accounting for 18.10% of floating shares. Considering the insider sales and additional evidence, I'm not very positive about the company's prospect.

Seagate Technology PLC (NASDAQ:STX) is a data storage devices company. It has a market cap of $10.61 billion. Its stock closed at $24.95 per share on Friday. Over the past week, Seagate Technology PLC has one insider who sold a total of 500,000 shares at the total value of $12,215,500. At a P/E ratio of 5.64, the stock appears fairly cheap in valuation. Seagate Technology PLC has an enterprise value / EBITDA ratio of 3.75. Its profit margin was 14.78% over the past year. The company had a net income of $1.97 billion and EBITDA of $3.06 billion on revenue of $13.32 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 65.10% and 1132.30%, respectively. The market seems to believe the profit generated by the flood in Thailand is not sustainable. This month, 17.82 million shares are being shorted. I would not sell short the stock at this point.

Constellation Brands Inc. (NYSE:STZ) is a wineries & distillers company. It has a market cap of $5.29 billion. Its stock closed at $28.46 per share on Friday. Over the past week, Constellation Brands Inc. has one insider who sold a total of 246,795 shares at the total value of $6,744,166. Its stock price is 1.76% below 52-week high, a plus on the technical side. Constellation Brands Inc. has an enterprise value / EBITDA ratio of 13.30. Its profit margin was 16.67% over the past year. The company had a net income of $442.50 million and EBITDA of $651.40 million on revenue of $2.65 billion. Its revenue declined by 0.10%, and its net income declined by 3.40% during the most recent quarter. Over the past ten days, Constellation Brands Inc. has seen significantly higher than average trading volume. I cannot recommend short selling this company at this price level.

Source: 15 Companies Dumped By Insiders