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I screened with Open Insider for insider sell transactions filed on September 24. I then checked with Stock Charts if the stocks had bearish Point and Figure counts. Bearish Point and Figure counts mean that the price objective is below the current market price. From this list, I chose the top five stocks with insider selling in dollar terms. Here is a look at the top five stocks:

1. Ford Motor Company (NYSE:F), a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 168,000 employees and about 65 plants worldwide, the company's automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company.


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Insider sells

  • Michael Bannister sold 256,667 shares on September 21. Michael Bannister serves as Executive Vice President of the company.
  • Sankar Nair sold 41,778 shares on September 24. Sankar Nair serves as Group Vice President of the company.

Financials

The company reported the second-quarter financial results on July 25 with the following highlights:

Revenue $33.3 billion
Net income $1 billion
Gross cash $23.7 billion

Outlook

Going forward, Ford remains committed to all aspects of its One Ford plan, which is unchanged:

  • Aggressively restructure to operate profitably at the current demand and changing model mix
  • Accelerate the development of new products that customers want and value
  • Finance the plan and improve the balance sheet
  • Work together effectively as one team, leveraging Ford's global assets

Ford's planning assumptions and key metrics include the following:


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My analysis

The stock has a bearish $5 price target from the Point and Figure chart. There have been nine insider sell transactions and there has not been any insider buying this year. The stock is trading at a forward P/E ratio of 6.97. The company has a book value of $4.44 per share. I am not interested in shorting this stock based on the low forward P/E ratio.

2. Envestnet (NYSE:ENV) is a leading provider of technology-enabled wealth management solutions to investment advisors. Envestnet's Advisor Suite software empowers advisors to better manage client outcomes and strengthen their practice. Envestnet offers advanced portfolio solutions through its Portfolio Management Consultants Group, Envestnet PMC. Envestnet Tamarac provides leading rebalancing, reporting and practice management software. Envestnet Prima provides institutional-quality research and due diligence on investment and fund managers. Envestnet Vantage gives advisors an in-depth view of clients' investments, empowering them to give holistic, personalized advice.


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Insider sells

James Johnson sold 16,900 shares on September 20-21 pursuant to a 10b5-1 Plan. James Johnson serves as a director of the company.

Financials

The company reported the second-quarter financial results on August 8 with the following highlights:

Revenue $38.0 million
Net loss $0.7 million
Cash $13.4 million

My analysis

The stock has a bearish $8.5 price target from the Point and Figure chart. There have been 46 insider sell transactions and two insider buy transactions this year. The stock is trading at a forward P/E ratio of 20.98. There is an opportunity for a short entry with the $8.5 price target and a stop loss at $13.5.

3. Iridium (NASDAQ:IRDM) is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations and assets to and from anywhere, in real time. Together with its ever-expanding ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. The company has a major development program underway for its next-generation network - Iridium NEXT.


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Insider sells

Greenhill & Co. sold 30,000 shares on September 20-21 pursuant to a Rule 10b5-1 trading plan. Greenhill & Co. has sold 435,000 shares since August 13.

Financials

The company reported the second-quarter financial results on August 2 with the following highlights:

Revenue $97.3 million
Net income $17.7 million
Cash $166.7 million

Outlook

The company affirmed its full-year 2012 outlook for total billable subscriber growth and updated its projections for service revenue and OEBITDA. The company now expects:

  • Total billable subscriber growth between 20 percent and 25 percent for the full-year 2012
  • Total service revenue growth to be approximately 6 percent for the full-year 2012
  • Full-year 2012 OEBITDA between $205 million and $210 million. OEBITDA for 2011 was $190.4 million.

My analysis

The stock has a bearish $1 price target from the Point and Figure chart. There have been 54 insider sell transactions and 47 insider buy transactions since March 2012. The stock is trading at a forward P/E ratio of 8.10. The company has a book value of $10.04 per share. I am not interested in shorting the stock based on the strong financials.

4. Fresh Del Monte Produce (NYSE:FDP) is one of the world's leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared food in Europe, Africa, the Middle East and the countries formerly part of the Soviet Union. Fresh Del Monte markets its products worldwide under the Del Monte brand, a symbol of product innovation, quality, freshness and reliability for more than 100 years.


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Insider sells

Marissa Tenazas' husband sold 5,360 shares on September 20-21 pursuant to a Rule 10b5-1 plan. Ms. Tenazas has served as Vice President-Human Resources since May 1999.

Financials

The company reported the second-quarter financial results on July 31 with the following highlights:

Revenue $957.6 million
Net income $58.5 million
Cash $32.0 million

My analysis

The stock has a bearish $15 price target from the Point and Figure chart. There have been three insider sell transactions and two insider buy transactions this year. The stock is trading at a forward P/E ratio of 10.10. The company has a book value of $31.19 per share. I am not interested in shorting the stock based on the strong financials.

5. Solazyme (NASDAQ:SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme's renewable products can replace or enhance oils derived from the world's three existing sources - petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) chemicals and fuels, (2) nutrition and (3) skin and personal care.


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Insider sells

Jonathan Wolfson sold 12,500 shares on September 21 pursuant to a Rule 10b5-1 trading plan. Jonathan Wolfson currently controls 3,085,042 shares of the company. Mr. Wolfson is a co-founder and Chief Executive Officer of the company.

Financials

The company reported the second-quarter financial results on August 7 with the following highlights:

Revenue $13.5 million
Net loss $19.2 million
Cash $195.5 million

My analysis

The stock has a $2.5 price target from the Point and Figure chart. There have been 54 insider sell transactions and there have not been any insider buy transactions this year. The company has a book value of $3.65 per share. There is an opportunity for a short entry with a first target at $9 and a stop loss at $15.

Source: Top 5 Stocks With Insider Sells Filed On September 24 To Consider