I screened with Open Insider for insider sell transactions filed on October 15. 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. Liberty Interactive Corporation (LINTA) operates and owns interests in a broad range of digital commerce businesses. Those interests are currently attributed to two tracking stock groups: Liberty Interactive Group and Liberty Ventures Group. The Liberty Interactive Group is primarily focused on digital commerce and consists of Liberty Interactive Corporation's subsidiaries Backcountry.com, Bodybuilding.com, Celebrate Interactive (including Evite and Liberty Advertising), CommerceHub, MotoSport, Provide Commerce, QVC, Right Start, and Liberty Interactive Corporation's interests in HSN and Lockerz. The Liberty Ventures Group (LVNTA) consists of Liberty Interactive Corporation's non-consolidated assets, including interests in AOL (AOL), Expedia (EXPE), Interval Leisure Group (IILG), Time Warner (TWX), Time Warner Cable (TWC), Tree.com (TREE), TripAdvisor (TRIP) and various green energy investments.
Gregory Maffei sold 534,399 shares on October 12 and 442,124 shares on October 10-11 pursuant to a 10b5-1 trading plan. Gregory Maffei has been President and Chief Executive Officer of Liberty Media since February 2006.
The company reported the second-quarter financial results on August 8 with the following highlights:
|Net income||$234 million|
The stock has a $29 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 18.11 and a forward P/E ratio of 14.84. The company has a book value of $11.34 per share. I am not interested in shorting the stock before the $29 price target is met.
2. 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.
- Philip Hadley sold 102,700 shares on October 11-15 and currently holds 856,384 shares of the company. Mr. Hadley was named Chairman and Chief Executive Officer of FactSet on September 5, 2000.
- 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 10 insider sell transactions and there have not been any insider buy transactions this year. The stock is trading at a P/E ratio of 22.52 and a forward P/E ratio of 18.06. I am not interested in shorting the stock before the $131 target price is hit.
3. Iron Mountain Incorporated (IRM) provides information storage and management services that help organizations lower the costs, risks and inefficiencies of managing their physical and digital data. The company's solutions enable customers to protect and better use their information so they can optimize their business and ensure proper recovery, compliance and discovery. Founded in 1951, Iron Mountain manages billions of information assets, including business records, electronic files, medical data and more for organizations around the world.
Marc Duale sold 150,000 shares on October 11 pursuant to a 10b5-1 trading plan which was approved and became effective as of September 7, 2012. Marc Duale was appointed president, international in September 2008, after overseeing Iron Mountain's business in Europe for two years.
The company reported the second-quarter financial results on July 26 with the following highlights:
|Net income||$38.1 million|
The company projects 2012 reported revenues to be in the range of $2,990 million to $3,040 million reflecting current foreign exchange rates. The company is maintaining its outlook for adjusted OIBDA to be in the range of $890 million to $930 million. Adjusted EPS for 2012 is expected to be in the range of $1.20 to $1.36, unchanged from the prior outlook.
The stock has a $55 price target from the Point and Figure chart. There have been five insider sell transactions and there has been one insider buy transaction this year. The stock is trading at a P/E ratio of 34.24 and a forward P/E ratio of 25.68. I am not interested in shorting the stock before the $55 target price is hit.
4. Ambarella (AMBA) is a leading developer of low-power, high-definition video compression and image processing solutions. The company's products are used in a variety of high definition [HD] cameras including security IP-cameras, wearable sports cameras, digital still cameras, and automotive video recorders. Ambarella technology is also used in television broadcasting infrastructure systems with video content encoded and transmitted to audiences around the world.
- Benchmark Capital Management Co IV sold 555,974 shares on October 15 pursuant to the initial public offering.
- Leslie Kohn sold 70,000 shares on October 15 pursuant to the initial public offering. Leslie Kohn currently holds 1,338,888 shares of the company. Leslie Kohn is the Chief Technology Officer of the company.
- Didier Legall sold 55,555 shares on October 15 pursuant to the initial public offering. Didier Legall currently holds 466,667 shares of the company. Didier Legall is Executive Vice President of the company.
The company reported the first-half 2012 financial results with the following highlights:
|Net income||$7.8 million|
|Cash (July 31, Pro forma after IPO)||$90.3 million|
The stock started trading on October 10. There were three insider sell transactions and there were no insider buy transactions during the IPO. The stock is trading at a P/E ratio of 12.53. I have a neutral bias for the stock currently.
5. Cracker Barrel Old Country Store (CBRL) was established in 1969 in Lebanon, Tenn. and operates 615 company-owned locations in 42 states. Cracker Barrel Old Country Store provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that's surprisingly unique, genuinely fun and reminiscent of America's country heritage … all at a fair price. The restaurant serves up delicious, home-style country food such as meatloaf and homemade chicken n' dumplings as well as its made from scratch biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences.
Michael Woodhouse sold 47,714 shares on October 12-15 pursuant to a 10b5-1 trading plan adopted by the reporting person on September 20, 2012. Michael Woodhouse serves as a director of the company.
The company reported the full-year fiscal 2012 (ended August 3, 2012) financial results on September 19 with the following highlights:
|Net income||$103.1 million|
For fiscal 2013, the company expects total revenue of between $2.6 billion and $2.65 billion and earnings per diluted share of between $4.50 and $4.70. The increased revenue projection for fiscal 2013 reflects the expected opening of 12 new Cracker Barrel stores and projected increases in comparable store restaurant and retail sales in a range of 2.0% to 3.0%. Despite expectations for increases in food commodity costs of between 5.0% and 6.0% for the year, the company projects an operating income margin of between 7.3% and 7.5% of revenues. The company expects depreciation expense of between $66 million and $68 million, net interest expense of between $36 million and $38 million, and an effective tax rate of between 32% and 33%. The company expects capital expenditures during fiscal 2013 to be between $90 million and $100 million.
The company expects to report earnings per diluted share for the first quarter of 2013 of between $1.00 and $1.05.
The stock has a $102 price target from the Point and Figure chart. There have been 19 insider sell transactions and 20 insider buy transactions this year. The stock is trading at a P/E ratio of 15.19 and a forward P/E ratio of 12.18. I am not interested in shorting the stock before the $102 price target is hit. The stock is currently trading at all time highs.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.