I screened with Open Insider for insider sell transactions filed on October 2. 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. Garmin (GRMN) and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 - most of which are enabled by GPS technology. Garmin's products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, and OEM applications. Garmin is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom.
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Insider sells
- Min Kao sold 100,000 shares on September 28, 36,000 shares on September 24, 113,476 shares on September 19-21, 350,000 shares on September 14-17, 466,000 shares on September 12-13, 150,300 shares on September 7-10, 474,000 shares on September 4-6 and 300,000 shares on August 30-31. All these sales were pursuant to a Rule 10b5-1 Stock Trading Plans adopted on August 28, 2012 by family trusts of which the reporting person and his spouse are the trustees. Dr. Min Kao co-founded Garmin Corporation with Gary Burrell in October 1989 to integrate Global Positioning System [GPS] technology into navigation devices for multiple markets.
- Kevin Rauckman sold 15,000 shares on September 28. Kevin Rauckman joined the Garmin team as director of finance in January 1999 and became CFO and Treasurer for Garmin in August 2000.
Financials
The company reported the second-quarter financial results on August 1 with the following highlights:
| Revenue | $718 million |
| Net income (Pro Forma) | $192.9 million |
| Cash | $1.37 billion |
Outlook
The company updated its 2012 guidance on August 1. The new 2012 guidance is:
| Revenue | $2.75 billion to $2.80 billion |
| Gross Margin | 52-53% |
| Operating Margin | 21-22% |
| EPS (Pro Forma) | $2.70 - $2.85 |
My analysis
The stock has a $21 price target from the Point and Figure chart. There have been 53 insider sell transactions since December 2010. There has not been any insider buying since at least December 2010. The stock is currently trading at a forward P/E ratio of 14.24. There is an opportunity for a short entry with the $21 target price and a stop loss at $50.
2. Pentair (PNR) delivers industry-leading products, services and solutions for its customers' diverse needs in water and other fluids, thermal management and equipment protection. With pro forma 2011 revenues of more than $7 billion, Pentair employs more than 30,000 people worldwide.
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Insider sells
Randall Hogan sold 58,900 shares on September 28 - October 1 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on May 30, 2012. Randall Hogan was named Pentair's chief executive officer in 2001 and was appointed chairman in 2002.
Financials
The company reported the second-quarter financial results on July 24 with the following highlights:
| Revenue | $941.5 million |
| Net income | $71.8 million |
| Cash | $60.6 million |
Outlook
The company updated its full year 2012 EPS outlook to a range of $2.55 to $2.61 on July 24. Excluding acquisition-related and repositioning costs and specific tax benefits, the company's full year 2012 adjusted EPS outlook is $2.70 to $2.76. This represents an increase of 12 to 15 percent from 2011 adjusted EPS of $2.41. The company anticipates full year 2012 sales of approximately $3.6 billion and adjusted operating profits to be consistent with previously provided outlook.
In addition, the company introduced third quarter 2012 EPS guidance of $0.61 to $0.63, up 5 to 9 percent versus the same quarter last year's adjusted EPS. Third quarter 2012 sales are expected to be up 1 to 3 percent over last year's quarter to a range of $900 million to $915 million.
Both the full year and third quarter outlook do not include any future impact from the merger with Tyco International's Flow Control business.
News
Pentair announced on September 28 the completion of the merger of Pentair and the Flow Control business of Tyco International (TYC). Pentair and Flow Control have combined to create Pentair Ltd., an industrial growth company that is a global leader in water and fluid solutions, valves and controls, equipment protection and thermal management products.
My analysis
The stock has a $81 price target from the Point and Figure chart. There have been five 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 14.49. I am not interested in shorting the stock before the $81 price target is hit.
3. 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
- William Crowley sold 6,526 shares on October 1-2. William Crowley has been a director of the company since 2008.
- Robert Grusky sold 2,000 shares on October 1-2. Robert Grusky has been a director of the company since 2008.
- Luis Nieto sold 1,000 shares on October 2. Luis Nieto has been a director of the company since 2008.
- 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 on 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 43 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 11.85. I am not interested in shorting the stock before the $428 target price is hit.
4. Copart (CPRT) provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its patented VB2 technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others as well as cars sourced from the general public. The company currently operates 157 facilities in the United States, Canada, the United Kingdom and the United Arab Emirates. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made.
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Insider sells
- Simon Rote sold 63,634 shares on September 28. Simon Rote serves as a Vice President of Finance.
- Russell Lowy sold 1,822 shares on September 28. Russell Lowy serves as chief operating officer of the company.
Financials
The company reported the fiscal year ended July 31, 2012 financial results on September 25 with the following highlights:
| Revenue | $924.2 million |
| Net income | $182.1 million |
| Cash | $140.1 million |
My analysis
The stock has a $45.5 price target from the Point and Figure chart. There have been 16 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 15.30. I am not interested in shorting the stock before the $45.5 price target is hit.
5. Molson Coors Brewing Company (TAP) is one of the world's largest brewers. The company's operating segments include Canada, the United States, Central Europe, the United Kingdom, and Molson Coors International [MCI]. The company has a diverse portfolio of owned and partner brands, including signature brands Coors Light, Molson Canadian, Staropramen and Carling. Molson Coors is listed on the 2011 Dow Jones Sustainability Index [DJSI], the most recognized global benchmark of sustainability among global corporations.
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Insider sells
Peter Coors sold 37,400 shares on October 1 pursuant to a Rule 10b5-1 trading plan previously adopted by the reporting person. Peter Coors serves as Vice-Chairman of the Board.
Financials
The company reported the second-quarter financial results on August 7 with the following highlights:
| Revenue | $999.4 million |
| Net income | $105.1 million |
| Cash | $516 million |
My analysis
The stock has a $62 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 10.63. The company has a book value of $43.15 per share. I am not interested in shorting the stock before the $62 price target is hit based on the strong financials.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in GRMN over the next 72 hours.
