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I screened with Open Insider for insider sell transactions filed on October 10. 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. Google (NASDAQ: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

  • Lawrance Page sold 41,666 shares on October 9-10, 20,833 shares on October 8, 27,778 shares on September 12, 27,778 shares on September 11 and 27,778 shares on September 10 pursuant to a Rule 10b5-1 trading plan. Lawrance Page currently holds 25,589,427 shares of the company. Lawrance Page is the CEO of the company.

  • Sergey Brin sold 83,334 shares on October 2 pursuant to a Rule 10b5-1 trading plan. Sergey Brin is the co-founder of the company.

  • 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.

  • Nikesh Arora sold 1,218 shares on September 12 pursuant to 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.

  • 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 bearish $705 price target from the Point and Figure chart. The stock has seen steady insider selling this year with 2,224,810 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 15.12. The stock is currently trading very close to its all time high level. There is an opportunity for a short entry with the $705 price target and a stop loss at $775.

2. Family Dollar Stores (NYSE:FDO) has been providing value and convenience to customers in easy-to-shop neighborhood locations. Family Dollar's mix of name brands and quality, private brand merchandise, appeals to shoppers in more than 7,400 stores in rural and urban settings across 45 states. Helping families save on the items they need with everyday low prices creates a strong bond with customers who refer to their neighborhood store as "my Family Dollar."

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Insider sells

  • Howard Levine sold 227,570 shares on October 8. Howard Levine is Chairman of the Board and Chief Executive Officer of the company.

  • Barry Sullivan sold 7,983 shares on October 8. Barry Sullivan is Executive Vice President of the company.

Financials

The company reported the full fiscal year 2012, which ended on August 25, financial results on October 3 with the following highlights:

Revenue$9.3 billion
Net income$422.2 million
Cash$98.5 million

Outlook

Commenting on expectations for fiscal 2013, Howard R. Levine, Chairman and CEO, said:

Our financial goals over the next three to five years are to consistently deliver: five to seven percent net new store growth; mid-single-digit comp sales growth; operating margin expansion, and double-digit earnings per share growth. Our plans for fiscal 2013 align nicely with these long-term goals.

For the 53-week year ending August 31, 2013, the company expects that earnings per diluted share will be between $4.10 and $4.40, compared with $3.58 in fiscal 2012. Consistent with the National Retail Federation Calendar, fiscal 2013 will include an extra week, which will be recorded in the second quarter of the year. The extra week is expected to add approximately $0.10 of earnings per diluted share to the year, which is included in the company's earnings guidance.

The company's outlook for fiscal 2013 is based on the following assumptions which may or may not prove valid:

  • An increase in comparable store sales of between 4% and 6%;

  • Approximately 500 new store openings and 70-90 store closings;

  • Gross margin pressure driven primarily by an expanding mix of lower-margin consumables;

  • SG&A leverage driven by a strong increase in comparable store sales;

  • An effective income tax rate between 36% and 37%;

  • Weighted average diluted shares of approximately 117 million; and

  • Capital expenditures of between $600 million and $650 million to support new store openings, store renovations, merchandising initiatives, and expansion of the company's supply chain.

For the first quarter of fiscal 2013, the company expects that comparable store sales will increase between 4% and 6% and that earnings per diluted share will be between $0.69 and $0.78 per share compared with $0.68 per share in the first quarter of fiscal 2012.

My analysis

The stock has a bearish $53 price target from the Point and Figure chart. There have been eight insider sell transactions and there have not been any insider buy transactions this year. The stock is trading at a P/E ratio of 18.99 and a forward P/E ratio of 14.14. The stock is currently trading only $5 below its all time high level. There is an opportunity for a short entry with the $53 price target and a stop loss at $75.

3. Monsanto Company (NYSE:MON) is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy.

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Insider sells

Financials

The company reported the full fiscal year 2012, which ended on August 31, financial results on October 3 with the following highlights:

Revenue$13.5 billion
Net income$2.0 billion
Cash$3.6 billion

Outlook

In fiscal year 2013, Monsanto expects to achieve mid-teens ongoing EPS growth off the 2012 base of $3.70 for a range of $4.18 to $4.32.

The Seeds and Genomics segment is expected to deliver gross profit in the range of $6.55 billion in 2013, with gross profit growth projected to be divided roughly evenly between the United States and international regions.

Gross profit for the Agricultural Productivity segment for fiscal 2013 is expected in the range of $1 billion.

The company projects free cash flow in the range of $1.7 billion to $1.8 billion for fiscal year 2013. The company expects net cash provided by operating activities to be $2.8 billion to $3.1 billion, and net cash required by investing activities to be approximately $1.1 billion to $1.3 billion for fiscal year 2013.

In fiscal year 2013, the company expects selling, general and administrative expenses to be in the range of $2.55 billion. The company's research and development spend is projected in the range of $1.53 billion for fiscal year 2013.

My analysis

The stock has a $101 price target from the Point and Figure chart. There have been 21 insider sell transactions and there have not been any insider buy transactions this year. The stock is trading at a P/E ratio of 23.69 and a forward P/E ratio of 17.86. I am not interested in shorting the stock before the $101 price target is hit.

4. LinkedIn (NYSE: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

  • Steven Sordello sold 50,000 shares on October 10 pursuant to a rule 10b5-1 trading plan. Steven Sordello is Senior Vice President and Chief Financial Officer of the company.

  • 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.

  • 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 48 insider sell transactions and there have not been any insider buy transactions since July 2012. The stock is trading at a P/E ratio of 933.17 and a forward P/E ratio of 88.87. I am not interested in shorting the stock before the $153 target price is hit.

5. Exar Corporation (NYSE:EXAR) designs, develops and markets high performance analog mixed-signal integrated circuits and advanced sub-system solutions for data communication, networking, storage, consumer and industrial applications. Exar's product portfolio includes power management and connectivity components, communications products, network security and storage optimization solutions. Exar has locations worldwide providing real-time customer support.

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Insider sells

Soros Fund Management sold 300,000 shares on October 5. Soros Fund Management currently holds 6,366,666 shares of Exar. Exar has 45,710,434 shares outstanding which makes Soros Fund Management a 13.9% owner of Exar.

Financials

The company reported the first-quarter fiscal year 2013, which ended on July 1, financial results on July 25 with the following highlights:

Revenue$29.3 million
Net loss [GAAP]$0.6 million
Cash$195.0 million
Net cash per share$4.27

Outlook

The company's president and CEO Louis DiNardo commented on July 25:

Our bookings were strong throughout the first quarter and increased 22% as compared to the prior quarter. While this level of bookings supported a book-to-bill ratio of significantly better than 1:1, our dependence on distribution sell-through, for which we have less visibility, and weak macro economic conditions suggest caution in the September quarter.

My analysis

The stock has a $13 price target from the Point and Figure chart. There has been one insider sell transaction and there have not been any insider buy transactions this year. The stock is trading at a forward P/E ratio of 20.36. The company has a book value of $4.92 per share and a net cash position of $4.27 per share. I am not interested in shorting the stock before the $13 target price is hit.

Source: Top 5 Stocks With Insider Sells Filed On October 10 To Consider