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I screened with Open Insider for insider sell transactions filed on October 1. 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. C. R. Bard (BCR) is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.


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Insider sells

Mason Morfit sold 110,161 shares on September 27 - October 1 and 208,296 shares on September 24-26. Mason Morfit currently controls 4,462,137 shares of the company. Mason Morfit serves as a director of the company.

Financials

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

Revenue $742.6 million
Net income $133.9 million
Cash $714.0 million

Outlook

Christopher S. Holland, Chief Financial Officer and Senior Vice President, commented on July 25 earnings call:

Moving to financial guidance. For Q3, we expect constant currency sales growth between 3% and 5%. The sales environment is certainly challenging particularly in the U.S., and we are being appropriately cautious in this environment. While our full year sales guidance remains unchanged, realistically, we are now focused on achieving growth at the lower end of that range, which as you recall called for constant currency sales growth of 4%.

From an EPS standpoint, excluding items affecting comparability, we see the third quarter in the range of $1.60 to $1.64 per share. For the full year, we still expect to achieve the full year earnings guidance range of 3% to 4% growth, which we provided to you in December, which excluded the renewal of the R&D tax credit. As a reminder, we estimate the tax credit is worth about $4 million or slightly less than 1% of incremental EPS growth.

My analysis

The stock has a bearish $78 price target from the Point and Figure chart. There have been 40 insider sell transactions and there has been one insider buy transaction this year. The stock is trading at a forward P/E ratio of 14.74. There is an opportunity for a short entry with the $78 target price and a stop loss at $110.

2. Google (GOOG) is a global technology leader focused on improving the ways people connect with information. Google's innovations in web search and advertising have made its website a top internet property and its brand one of the most recognized in the world.


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Insider sells

  • John Doerr sold 10,966 shares on October 1 and 12,285 shares on September 4 pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person. John Doerr serves as a director of the company.
  • David Drummond sold 568 shares on October 1. David Drummond is Senior Vice President, Corporate Development.
  • Lawrance Page sold 27,778 shares on September 12, 27,778 shares on September 11 and 27,778 shares on September 10 via a Rule 10b5-1 trading plan. Lawrance Page currently holds 25,651,926 shares of the company. Lawrance Page is the CEO of the company.
  • Nikesh Arora sold 1,218 shares on September 12 via a Rule 10b5-1 trading plan. Nikesh Arora serves as SVP and Chief Business Officer of the company.
  • Patrick Pichette sold 1,964 shares on September 10. Patrick Pichette is SVP & Chief Financial Officer of the company.
  • Kavitark Shriram sold 72,604 shares on September 7. Kavitark Shriram serves as a director of the company.
  • Sergey Brin sold 83,334 shares on September 4. Sergey Brin is the Co-Founder of the company.
  • John Hennessy sold 74 shares on September 4. John Hennessy serves as a director of the company.
  • Eric Schmidt sold 50,000 shares on August 29 and 103,193 shares on August 27-28. Eric Schmidt serves as Executive Chairman of Board.

Financials

The company reported the second-quarter financial results on July 19 with the following highlights:

Revenue $12.2 billion
Net income $2.8 billion
Cash $43.1 billion

My analysis

The stock has a $685 price target from the Point and Figure chart which has been met already. The stock has seen steady insider selling this year with 1,760,450 shares sold during the last 6 months. There has not been any insider buying during the last 6 months. The stock is trading at a forward P/E ratio of 15.45. The stock is currently trading very close to its all time high levels. I have a neutral bias for the stock currently.

3. Lululemon Athletica (LULU) is a yoga-inspired athletic apparel company that creates components for people to live a long, healthy and fun lives. By producing products that help keep people active and stress free, lululemon believes that the world will be a better place. Setting the bar in technical fabrics and functional designs, lululemon works with yogis and athletes in local communities for continuous research and product feedback.


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Insider sells

Christine Day sold 83,336 shares on September 24-25. Christine Day has been Chief Executive Officer of lululemon athletica since June 2008.

Financials

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

Revenue $282.6 million
Net income $57.2 million
Cash $444.3 million

Outlook

For the third quarter of fiscal 2012, the company expects net revenue to be in the range of $300 million to $305 million based on a comparable-store sales percentage increase in the low to mid teens on a constant-dollar basis. Diluted earnings per share are expected to be in the range of $0.34 to $0.36 for the quarter. This assumes 145.8 million diluted weighted-average shares outstanding and a 29.5% tax rate.

For the full fiscal 2012, the company expects net revenue to be in the range of $1.345 billion to $1.360 billion and diluted earnings per share are expected to be in the range of $1.76 to $1.81 for the full year. This assumes 145.8 million diluted weighted-average shares outstanding and a tax rate of 28.9%, which includes the effects of the $2.0 million adjustment to reverse taxes provided for in Q4 of fiscal 2011.

My analysis

The stock has a $129 price target from the Point and Figure chart. There have been 26 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 32.84. I am not interested in shorting this stock before the $129 target price is hit.

4. Red Hat (RHT) is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT.


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Insider sells

James Whitehurst sold 100,000 shares on September 28 pursuant to a Rule 10(b)5-1 trading plan effective January 24, 2012. James Whitehurst has served as the President and CEO of Red Hat and as a member of the Board since January 2008.

Financials

The company reported the second-quarter financial results on September 24 with the following highlights:

Revenue $322.6 million
Net income $35.0 million
Cash $1.36 billion

My analysis

The stock has a bearish $47 price target from the Point and Figure chart. There have been 24 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 39.44. There is an opportunity for a short entry with the $47 target price and a stop loss at $60.

5. AutoZone (AZO) is the nation's leading retailer and a leading distributor of automotive replacement parts and accessories with more than 4,800 stores in the U.S., Puerto Rico, and Mexico. Each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and re-manufactured hard parts, maintenance items and accessories. Since opening its first store in Forrest City, Ark. on July 4, 1979, the company has joined the New York Stock Exchange and earned a spot in the Fortune 500.


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Insider sells

Lisa Kranc sold 6,725 shares on October 1. Lisa Kranc was elected Senior Vice President - Marketing during fiscal 2001.

Financials

The company reported the fiscal year 2012, which ended August 25, financial results September 19 with the following highlights:

Revenue $8.6 billion
Net income $930.4 million
Cash $103.1 million

My analysis

The stock has a $428 price target from the Point and Figure chart. There have been 40 insider sell transactions and there has not been any insider buy transactions since March 2012. The stock is trading at a forward P/E ratio of 11.83. I am not interested in shorting the stock before the $428 target price is hit.

Source: Top 5 Stocks With Insider Sells Filed On October 1 To Consider