I screened with Open Insider for insider sell transactions filed on September 25. 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. Intuit (INTU) is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks, Quicken and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries and Lacerte are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money. Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations.
- Christopher Brody sold 50,000 shares on September 21-24, 47,669 shares on September 19-20 and 142,331 shares on September 17-18. Christopher Brody has been a director of Intuit since December 1993.
- R. Neil Williams sold 28,000 shares on September 20 and currently holds 4,548 shares of the company. R. Neil Williams became Intuit's senior vice president and chief financial officer in January 2008.
- Scott Cook sold 200,000 shares on August 23 pursuant to a 10b5-1 trading plan adopted by the reporting person. Scott Cook co-founded Intuit Inc. in 1983 and now serves as the chairman of the Executive Committee.
- Kiran Patel sold 175,000 shares on September 10 and 90,000 shares on August 23 pursuant to a 10b5-1 trading plan adopted by the reporting person. Kiran Patel is executive vice president and general manager of Intuit's small business group.
- Laura Fennell sold 12,393 shares on August 23 pursuant to a 10b5-1 trading plan adopted by the reporting person. Laura Fennell is senior vice president, general counsel and secretary, leading Intuit's legal, corporate affairs, privacy, information and physical security teams.
The company reported the fourth-quarter fiscal year 2012, which ended July 31, results on August 21 with the following highlights:
|Net income||$4 million|
|Quarterly dividend||$0.17 per share|
Intuit announced guidance for fiscal year 2013, which ends July 31, and expects:
- Revenue of $4.55 billion to $4.65 billion, growth of 10 to 12 percent.
- GAAP operating income of $1.315 billion to $1.345 billion, growth of 12 to 14 percent.
- Non-GAAP operating income of $1.57 billion to $1.60 billion, growth of 12 to 14 percent.
- GAAP diluted EPS of $2.76 to $2.82, growth of 6 to 8 percent.
- Non-GAAP diluted EPS of $3.32 to $3.38, growth of 12 to 14 percent.
For the first quarter of fiscal 2013, Intuit expects:
- Revenue of $630 million to $640 million, growth of 10 to 11 percent.
- GAAP operating loss of $85 million to $90 million, compared to a loss of $84 million in the year-ago quarter.
- Non-GAAP operating loss of $20 million to $25 million, compared to a loss of $20 million in the year-ago quarter.
- GAAP net loss per share of $0.20 to $0.21, compared to a net loss per share of $0.21 in the year-ago quarter.
- Non-GAAP net loss per share of $0.06 to $0.07, compared to a net loss per share of $0.08 in the year-ago quarter.
The stock has a $46 bearish price objective from the Point and Figure chart. There have been 29 insider sell transactions since December 2011 and there has not been any insider buy transactions since December 2011. The stock is trading at a forward P/E ratio of 15.43. There is an opportunity for a short entry with the $46 price target and a stop loss at $62.
2. Proto Labs (PRLB) is a leading online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. Proto Labs provides "Real Parts, Really Fast" to product developers worldwide. Proto Labs utilizes computer numerical control [CNC] machining and injection molding to manufacture custom parts for its customers.
John Tumelty sold 35,000 shares on September 21-25. John Tumelty serves as a managing director of the company.
The company reported the second-quarter financial results on July 24 with the following highlights:
|Net income||$5.1 million|
The stock has a bearish $24 price target from the Point and Figure chart. There have been 16 insider sell transactions and there has been one insider buy transaction this year. The stock is trading at a forward P/E ratio of 37.48. There is an opportunity for a short entry with the $24 price target and a stop loss at $42.
3. Perrigo (PRGO) develops, manufactures and distributes over-the-counter [OTC] and generic prescription [Rx] pharmaceuticals, infant formulas, nutritional products, dietary supplements and active pharmaceutical ingredients [API]. The company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The company's primary markets and locations of logistics operations have evolved over the years to include the United States, Israel, Mexico, the United Kingdom, India, China and Australia.
Joseph Papa sold 15,000 shares on September 21 pursuant to a Rule 10b5-1 sales plan adopted by the reporting person on November 29, 2011. This 10b5-1 sales plan will expire on the close of business November 20, 2012. Mr. Papa joined Perrigo on October 9, 2006 as President and Chief Executive Officer and was elected a Director in November 2006 and Chairman of the Board in October 2007.
The company reported the full fiscal year 2012, which ended June 30, financial results on August 16 with the following highlights:
|Net income||$401.6 million|
Management expects full-year fiscal 2013 adjusted earnings per share to be in a range of $5.30 to $5.50 per diluted share, an increase of 6% to 10% from fiscal 2012's $4.99 per diluted share.
The stock has a bearish $92 price target from the Point and Figure chart. There have been 34 insider sell transactions and there has not been any insider buy transactions this year. The stock is trading at a forward P/E ratio of 18.81. There is an opportunity for a short entry with the $92 price target and a stop loss at $125.
4. Primoris (PRIM), through various subsidiaries, has grown to become one of the largest construction service enterprises in the United States. Serving diverse end markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, and other customers. Since 2008, Primoris has more than doubled its size and the company's national footprint extends from Florida, along the Gulf Coast, through California, into the Pacific Northwest and Canada.
Brian Pratt sold 57,157 shares on September 21-25 and currently controls 15,106,488 shares of the company. The company has 51,388,406 shares outstanding which makes Brian Pratt a 29.4% owner of the company. Mr. Pratt has been a Director and Chairman as well as President and Chief Executive Officer of the company since July 2008.
The company reported the second-quarter financial results on August 8 with the following highlights:
|Net income||$11.7 million|
At June 30, 2012, total backlog was $1.09 billion compared to $1.17 billion at December 31, 2011. Primoris expects that approximately 61% of total backlog at June 30, 2012 will be recognized as revenue during the remainder of 2012, with $420 million expected for the East Construction Services segment, $228 million for the West Construction Services segment and $14 million for the Engineering segment.
Backlog should not be considered a comprehensive indicator of future revenues, as a significant portion of Primoris's revenues are derived from projects that are not part of a backlog calculation and projects that are considered a part of backlog may be cancelled by the company's customers. For the six months ended June 30, 2012, approximately $124.7 million of revenue was generated by projects that were not included in backlog.
The stock has a bearish $5 price target from the Point and Figure chart. There have been 25 insider sell transactions and six insider buy transactions this year. The stock is trading at a forward P/E ratio of 9.90. The company has a book value of $5.82 per share. There is an opportunity for a short entry with a first target at $10 and a stop loss at $15.
5. Dolby Laboratories (DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound, Dolby creates innovations that enrich entertainment at the movies, at home, or on the go.
The company reported the financial results for its third-quarter of fiscal 2012, which ended June 29, on August 2 with the following highlights:
|Net income||$51.5 million|
|Shares outstanding||104.7 million|
|Cash per share||$9.48|
For fiscal 2012, Dolby is anticipating total revenue to range from $900 million to $920 million.
The stock has a bearish $22 price target from the Point and Figure chart. There have been 46 insider sell transactions and there has not been any insider buy transactions since May 2012. The stock is trading at a forward P/E ratio of 14.42. The company has a book value of $16.42 per share. There is an opportunity for a short entry with the $22 target price and a stop loss at $45.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in PRLB over the next 72 hours.