I screened with Open Insider for insider sell transactions filed on September 28. 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. Thermon Group (THR) provides highly engineered thermal solutions, known as heat tracing, for process industries, including energy, chemical processing and power generation. Thermon's products provide an external heat source to pipes, vessels and instruments for the purposes of freeze protection, temperature maintenance, environmental monitoring and surface snow and ice melting. Thermon is headquartered in San Marcos, Texas.
- CHS Private Equity V LP sold 7,002,682 shares on September 26 pursuant to a secondary offering. CHS Private Equity V LP currently holds 2,476,877 shares of Thermon.
- Thompson Street Capital Partners II L P sold 2,450,073 shares on September 26 pursuant to a secondary offering. Thompson Street Capital Partners II L P currently holds 866,600 shares of Thermon.
The company reported the financial results for the first-quarter, which ended June 30, 2012, on August 7 with the following highlights:
|Net income||$6.6 million|
The company experienced significant backlog growth in both hemispheres with Western increasing 52% and Eastern increasing 32% as compared to ending backlog of Q1 2012. The company's backlog increased to $117.3 million as of June 30.
There have been 30 insider sell transactions and two insider buy transactions this year. The stock is trading at a forward P/E ratio of 18.93. The 200 day moving average is currently at $20.83. There is an opportunity for a short entry with a $21 price target and a stop loss at $26.5.
2. Alexion Pharmaceuticals (ALXN) is a biopharmaceutical company focused on serving patients with severe and ultra-rare disorders through the innovation, development and commercialization of life-transforming therapeutic products. Alexion is the global leader in complement inhibition and has developed and markets Soliris (eculizumab) as a treatment for patients with PNH and aHUS, two debilitating, ultra-rare and life-threatening disorders caused by chronic uncontrolled complement activation. Soliris is currently approved in more than 40 countries for the treatment of PNH, and in the United States and the European Union for the treatment of aHUS. Alexion is evaluating other potential indications for Soliris and is developing four other highly innovative biotechnology product candidates, which are being investigated across eight severe and ultra-rare disorders beyond PNH and aHUS.
- Leonard Bell sold 143,100 shares on September 27-28 pursuant a sales plan designed to meet the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act. Dr. Leonard Bell is the Chief Executive Officer and principal founder of Alexion Pharmaceuticals.
- Patrice Coissac sold 63,483 shares on August 27-28. Patrice Coissac joined Alexion in 2005 and serves as a Corporate Senior Vice President and as President of Alexion Pharma International. Mr. Coissac also leads the company's expanding global operations in Europe, the Middle East and African countries.
The company reported the second-quarter financial results on July 25 with the following highlights:
|Net income||$94.1 million|
Alexion announced on July 25 that it is raising its 2012 revenue guidance from the previous range of $1.065 to $1.085 billion to the higher range of $1.110 to $1.125 billion. The upward revision reflects continued global growth of Soliris in PNH and growth from the ongoing launch of Soliris in aHUS. 2012 guidance for non-GAAP SG&A is being increased from the previous range of $345 to $355 million, to $360 to $370 million, reflecting continued investment in the growth of the company's global operations. Non-GAAP R&D guidance remains unchanged. Guidance for 2012 non-GAAP earnings per share is being raised, from the previous range of $1.65 to $1.75 per share, to the higher range of $1.78 to $1.88 per share for the year. Shares outstanding are expected to be approximately 203 million in the third quarter and approximately 204 million in the fourth quarter.
The stock has a $124 price target from the Point and Figure chart. There have been 43 insider sell transactions and there has not been any insider buy transactions this year. The stock is trading at a P/E ratio of 113.27 and a forward P/E ratio of 43.50. I am not interested in shorting the stock before the $124 target price is hit.
3. FactSet Research Systems Inc. (FDS), a leading provider of financial information and analytics, helps the world's best investment professionals outperform. More than 49,000 users stay ahead of global market trends, access extensive company and industry intelligence, and monitor performance with FactSet's desktop analytics, mobile applications, and comprehensive data feeds. The company was named the 2012 Best Research Provider at the Inside Market Data and Inside Reference Data Awards and has been included in FORTUNE's Top 100 Best Companies to Work For, the United Kingdom's Great Places to Work and France's Best Workplaces.
- Michael Frankenfield sold 30,411 shares on September 27. Mr. Frankenfield was named to his current position of Executive Vice President and Director of Global Sales in August 2009.
- Charles Snyder sold 119,562 shares on September 26. Charles Snyder serves as a director of the company.
The company reported the full fiscal year 2012, which ended August 31, financial results on September 25 with the following highlights:
|Net income||$188.8 million|
First Quarter Fiscal 2013 Expectations
- Revenues are expected to range between $210 million and $213 million.
- Operating margin is expected to range between 33.5% and 34.0%.
- The effective tax rate is expected to range between 31.5% and 32.5%.
- GAAP diluted EPS should range between $1.10 and $1.12, which represents year over year growth of 11% and 13% at each end of the range.
Full Year Fiscal 2013
- The full year fiscal 2013 guidance for capital expenditures, net of landlord contributions, is $20 million to $28 million.
- The annual effective tax rate is expected to range between 31.5% and 32.5%.
The stock has a $131 price target from the Point and Figure chart. There have been seven 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 20.83. I am not interested in shorting the stock before the $131 target price is hit.
4. Southwestern Energy Co. (SWN) is an independent energy company whose wholly owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering and marketing.
- Gregory Kerley sold 247,218 shares on September 26. Gregory Kerley is Executive Vice President and Chief Financial Officer of the company.
- Vello Kuuskraa sold 10,000 shares on September 26 and 6,000 shares on September 14. Vello Kuuskraa serves as a director of the company.
- John Thaeler sold 100,000 shares on September 14. John Thaeler is a former Senior Vice President of the company.
The company reported the second-quarter financial results on August 2 with the following highlights:
|Net loss||$488.1 million|
For the second quarter of 2012, Southwestern reported a net loss of $488.1 million, or $1.40 per diluted share. The net loss for the three months ended June 30, 2012 included a $935.9 million non-cash ceiling test impairment ($578.9 million net of taxes) of the company's natural gas and oil properties resulting from lower natural gas prices. Excluding the non-cash impairment, Southwestern reported net income for the second quarter of 2012 of $90.8 million, or $0.26 per diluted share, compared to net income of $167.5 million, or $0.48 per diluted share, for the prior year period.
Steve Mueller, President and Chief Executive Officer of Southwestern Energy commented on August 2:
"The second quarter was challenging for any company drilling for natural gas. Southwestern Energy has embraced those challenges and our results show we had a very strong quarter. Our costs continue to be low, with all-in cash operating costs of $1.20 per Mcfe for the second quarter of 2012 and our Fayetteville and Marcellus drilling programs continue to provide a meaningful drilling inventory at the prices we see going forward. Finally, our New Ventures activities in the Brown Dense play are providing encouraging results and we are excited about the other ideas we are pursuing. We see many challenges as we look toward the second half of 2012, but those challenges also bring opportunities that have the potential to make 2012 one of the most exciting years in our history."
The stock has a $51 price target from the Point and Figure chart. There have been 21 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 22.44. I am not interested in shorting the stock before the $51 price target is hit.
5. Cheniere Energy, Inc (LNG) is a Houston-based energy company primarily engaged in LNG-related businesses. The company owns and operates the Sabine Pass LNG receiving terminal in Louisiana through its 90.6% ownership interest in and management agreements with Cheniere Energy Partners (CQP), which is a publicly traded partnership the company created in 2007. The company also owns and operates the Creole Trail Pipeline, which interconnects the Sabine Pass LNG receiving terminal with downstream markets. One of the company's subsidiaries, Cheniere Marketing is marketing LNG and natural gas and is developing a portfolio of contracts to monetize capacity at the Sabine Pass LNG receiving terminal and the Creole Trail Pipeline. The company is also in various stages of developing other LNG receiving terminal and pipeline related projects, which, among other things, will require acceptable commercial arrangements before the company makes a final investment decision.
Nuno Brandolini sold 500,000 shares on September 26-27. Nuno Brandolini serves as a director of the company.
The company reported the second-quarter financial results on August 3 with the following highlights:
|Net loss||$73.0 million|
The stock has a $26 price target from the Point and Figure chart. There have been 27 insider sell transactions and there has not been any insider buy transactions this year. I am not interested in shorting the stock before the $26 price target is hit.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in SWN over the next 72 hours.