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I screened with Open Insider for insider sell transactions filed on October 5. 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. Dollar General Corporation (DG) has been delivering value to shoppers for more than 70 years. Dollar General helps shoppers Save time. Save money. Every day! by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. With more than 10,000 stores in 40 states, Dollar General has more retail locations than any retailer in America. In addition to high quality private brands, Dollar General sells products from America's most-trusted manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola.

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Insider sells

  • Buck Holdings sold 35,529,421 shares on October 3 pursuant to a secondary offering. Buck Holdings currently holds 76,643,519 shares of Dollar General. Dollar General has 328,241,200 shares outstanding which makes Buck Holdings a 23.3% owner of Dollar General.
  • Todd Vasos sold 37,453 shares on October 3 pursuant to a secondary offering. Todd Vasos is executive vice president, division president and chief merchandising officer responsible for merchandising, marketing and global sourcing.
  • John Flanigan sold 29,489 shares on October 3 pursuant to a secondary offering. John Flanigan joined Dollar General as senior vice president, global supply chain in May 2008 and was promoted to executive vice president, global supply chain in March 2010.
  • Robert Ravener sold 33,587 shares on October 3 pursuant to a secondary offering. Robert Ravener is executive vice president and chief people officer at Dollar General, responsible for all human resources initiatives.
  • Anita Elliott sold 10,000 shares on October 3 pursuant to a secondary offering. Anita Elliott joined Dollar General in August 2005 and serves as Senior Vice President and Controller.
  • Susan Lanigan sold 22,432 shares on October 3 pursuant to a secondary offering. Susan Lanigan joined Dollar General in July 2002 as vice president, general counsel and corporate secretary.
  • David Tehle sold 32,894 shares on October 3 pursuant to a secondary offering. David Tehle joined Dollar General in June 2004 and serves as Executive Vice President and Chief Financial Officer.
  • Richard Dreiling sold 120,996 shares on October 3 pursuant to a secondary offering. Richard Dreiling has been Chief Executive Officer and Chairman of the Board with Dollar General Corporation since 2008.

Financials

The company reported the second-quarter financial results on September 5 with the following highlights:

Revenue$3.9 billion
Net income$214.1 million
Cash$134.2 million

Outlook

The company expects total sales for the 2012 fiscal year to increase 8 to 9 percent over the 53-week 2011 fiscal year, or 10 to 11 percent on a comparable 52-week basis. Same-store sales, based on a comparable 52-week period, are expected to increase 4 to 5 percent, an increase from the previous expectation of the low end of 3 percent. For the year, operating profit, excluding expenses resulting from secondary offerings of the company's stock, is expected to be between $1.64 billion and $1.66 billion, as compared to the company's previous guidance of between $1.62 billion and $1.66 billion.

Diluted EPS for the 52-week fiscal year is expected to be approximately $2.77 to $2.85.

The company plans to open approximately 625 new stores, including 40 Dollar General Market stores in 2012. In addition, the company plans to remodel or relocate a total of approximately 575 stores, an increase from the company's previous estimate of 550. Square footage is expected to increase by approximately 7 percent. Capital expenditures are expected to be in the range of $600 million to $650 million.

My analysis

The stock is currently trading very close to its all time highs. There have been 32 insider sell transactions and there has been one insider buy transaction since March 2012. The stock is trading at a forward P/E ratio of 15.48. There is an opportunity for a short entry with a $46 price target and a stop loss at $56.

2. Allergan (AGN) is a multi-specialty health care company established more than 60 years ago with a commitment to uncover the best of science and develop and deliver innovative and meaningful treatments to help people reach their life's potential. Today, the company has approximately 10,500 highly dedicated and talented employees, global marketing and sales capabilities with a presence in more than 100 countries, a rich and ever-evolving portfolio of pharmaceuticals, biologics, medical devices and over-the-counter consumer products, and state-of-the-art resources in R&D, manufacturing and safety surveillance that help millions of patients see more clearly, move more freely and express themselves more fully.

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Insider sells

  • David Pyott sold 616,300 shares on October 4-5. Mr. Pyott joined Allergan in January 1998 as President and Chief Executive Officer and now serves as Chairman of the Board (since 2001), President and CEO.
  • Douglas Ingram sold 100,000 shares on August 30. Mr. Ingram has been Executive Vice President and President, Europe, Africa and Middle East since August 2010.
  • Louis Lavigne sold 15,000 shares on August 29. Louis Lavigne serves as a director of the company.

Financials

The company reported the second-quarter financial results on August 1 with the following highlights:

Revenue$1.49 billion
Net income$295 million
Cash$2.67 billion

Outlook

For the third quarter of 2012, Allergan expects:

  • Total product net sales between $1,370 million and $1,445 million.
  • Non-GAAP diluted earnings per share attributable to stockholders between $1.02 and $1.04.

My analysis

The stock has a $110 price target from the Point and Figure chart. There have been 22 insider sell transactions and there have not been any insider buy transactions this year. The stock is trading at a forward P/E ratio of 19.67. I am not interested in shorting the stock before the $110 price target is hit.

3. TIBCO Software (TIBX) is a provider of infrastructure software for companies to use on-premise or as part of cloud computing environments. Whether it's optimizing claims, processing trades, cross-selling products based on real-time customer behavior, or averting a crisis before it happens, TIBCO provides companies the two-second advantage - the ability to capture the right information at the right time and act on it preemptively for a competitive advantage. More than 4,000 customers worldwide rely on TIBCO to manage information, decisions, processes and applications in real time.

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Insider sells

  • Vivek Ranadivé sold 542,000 shares on October 4-5. Mr. Ranadivé founded TIBCO in 1997 with the vision of bringing real-time technology into the mainstream. Vivek Ranadivé is Chairman and CEO of TIBCO.
  • Murray Rode sold 30,000 shares on October 4. Mr. Rode has been with TIBCO (and its predecessor company) since 1995 in a variety of roles. In addition to his general responsibilities as COO, Mr. Rode is also directly responsible for various functions, including finance, corporate development and IT.
  • Sydney Carey sold 24,500 shares on October 4. Sydney Carey is Executive Vice President and Chief Financial Officer of the company.

Financials

The company reported the financial results for its third fiscal quarter, which ended on Sunday, September 2, 2012, on September 20 with the following highlights:

Revenue$255.0 million
Net income$26.1 million
Cash$675.3 million

Outlook

Sydney L. Carey, Chief Financial Officer and Executive Vice President, commented on September 20 earnings conference call:

Our guidance for Q4 is as follows. We expect total revenue to range from $310 million to $318 million. On a constant currency basis, this represents growth of 11% to 14%. We expect license revenue to range from $148 million to $156 million. On a constant currency basis, this represents growth of 13% to 19%. Note that our growth rate on services and, therefore, total revenue is being impacted by our quarterly calendar, which has 5 fewer days in Q4 2012 than Q4 of 2011.

The non-GAAP operating margin is expected to be 33% to 34%. Non-GAAP EPS for the quarter should range between $0.42 and $0.44, with an assumed tax rate of 27%. We are estimating the impact of currency on earnings to be a negative $0.03. GAAP EPS should range from $0.32 to $0.34 with an assumed tax rate of 20%. Our actual GAAP and non-GAAP tax rates can vary depending on the mix of foreign versus domestic profits. For 2012, on a constant currency basis, we see total revenue growth at 17% to 18% and license revenue growth of 15% to 17%.

My analysis

The stock has a $61 price target from the Point and Figure chart. There have been 18 insider sell transactions and there have not been any insider buy transactions this year. The stock is trading at a forward P/E ratio of 20.93. I am not interested in shorting the stock before the $61 price target is hit.

4. PHH Corporation (PHH) is a leading provider of business process management services for the mortgage and fleet industries. Its subsidiary, PHH Mortgage, is one of the largest originators and servicers of residential mortgages in the United States, and its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada. PHH is dedicated to delivering premier customer service and providing value-added solutions to its clients.

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Insider sells

Scopia Fund Management sold 703,920 shares on September 28 - October 5. Scopia Fund Management is a 10% owner of PHH Corporation according to SEC filings.

Financials

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

Revenue$559 million
Net loss$57 million
Cash$700 million
Tangible book value$25.39 per share

My analysis

The stock has a $33 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 9.85. I am not interested in shorting the stock before the $33 price target is hit.

5. LinkedIn (LNKD) connects the world's professionals to make them more productive and successful. With more than 175 million members worldwide, including executives from every Fortune 500 company, LinkedIn is the world's largest professional network on the Internet. The company has a diversified business model with revenue coming from member subscriptions, marketing solutions and hiring solutions. Headquartered in Silicon Valley, LinkedIn also has offices across the Americas, Europe, and the Asia-Pacific.

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Insider sells

  • David Henke sold 58,000 shares on October 5 pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. David Henke serves as Senior Vice President, Operations.
  • Erika Rottenberg sold 14,000 shares on October 3-4 pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. Erika Rottenberg serves as Vice President, General Counsel and Secretary.
  • Jeff Weiner sold 74,584 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. The plan provides for periodic sales as part of a liquidity and diversification strategy. Jeff Weiner is the CEO of LinkedIn.
  • Dipchand Nishar sold 70,875 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. Dipchand Nishar serves as Senior Vice President, Products and User Experience.
  • Reid Hoffman sold 78,664 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. Reid Hoffman serves as a director of the company.
  • David Sze sold 13,384 shares on October 1. The shares were sold pursuant to a duly adopted 10b5-1 trading plan entered into in accordance with the issuer's insider trading policy. David Sze serves as a director of the company.
  • Steven Sordello sold 50,000 shares on September 10 pursuant to a rule 10b5-1 trading plan. Steven Sordello is Senior Vice President and Chief Financial Officer of the company.
  • Stanley Meresman sold 1,000 shares on September 11-12 pursuant to a rule 10b5-1 trading plan. Stanley Meresman serves as a director of the company.

Financials

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

Revenue$228.2 million
Net income$2.8 million
Cash$617.2 million

Outlook

On August 2 LinkedIn provided guidance for the third quarter of 2012, and revised guidance upwards for the full year of 2012 on revenue, adjusted EBITDA, and stock-based compensation, while narrowing the full-year outlook for depreciation and amortization.

  • Q3 2012 Guidance: Revenue for the third quarter of 2012 is projected to range between $235 million to $240 million. The company expects adjusted EBITDA to range between $42 million and $45 million. The company expects stock-based compensation to range between $27 and $28 million and depreciation and amortization to range between $20 million and $22 million.
  • Full Year 2012 Guidance: The company has revised its expected revenue range upward to $915 million to $925 million from the prior range of $880 million to $900 million. The company has also revised upward its expected adjusted EBITDA range to $185 million to $190 million from the prior range of $170 million to $175 million. The company now expects stock-based compensation to range between $85 million and $95 million, while the range for depreciation and amortization is now $75 million to $80 million.

My analysis

The stock has a $153 price target from the Point and Figure chart. There have been 47 insider sell transactions and there have not been any insider buy transactions since July 2012. The stock is trading at a forward P/E ratio of 95.06. I am not interested in shorting the stock before the $153 target price is hit.

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