Top 5 Stocks With Insider Sells Filed On October 17 To Consider

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 |  Includes: AAPL, AEGR, CBS, OXM, SIRI
by: Markus Aarnio

I screened with Open Insider for insider sell transactions filed on October 17. 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. Sirius XM Radio (NASDAQ:SIRI) is the world's largest radio broadcaster measured by revenue and has nearly 23 million subscribers. SiriusXM creates and broadcasts commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment; and the most comprehensive Latin music, sports and talk programming in radio. SiriusXM is available in vehicles from every major car company in the U.S., from retailers nationwide, and online at siriusxm.com. SiriusXM programming is also available through the SiriusXM Internet Radio App for Android, Apple, and BlackBerry smartphones and other connected devices. SiriusXM also holds a minority interest in SiriusXM Canada which has more than 2 million subscribers [From Sirius' website].

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Insider sells

Mel Karmazin sold 13,100,000 shares on October 15-16 pursuant to the Sales Plan adopted by Mr. Karmazin on August 30, 2012. Mel Karmazin is Chief Executive Officer of Sirius XM Radio.

Financials

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

Revenue $837.5 million
Net income $0.48 per share
Cash $868.3 million
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Included in the second-quarter 2012 net income was an income tax benefit of approximately $3.0 billion related to a reversal of substantially all of the company's deferred income tax valuation allowance.

Outlook

Mel Karmazin, Chief Executive Officer, SiriusXM commented:

Our increase in adjusted EBITDA guidance to approximately $900 million indicates strong confidence in our ability to continue to execute in the back half of the year. We were also pleased to raise our subscriber guidance for the second time this year just last month.

The company's 2012 subscriber, revenue, adjusted EBITDA and free cash flow guidance are as follows:

  • Net subscriber growth approaching 1.6 million,

  • Revenue approaching $3.4 billion,

  • Adjusted EBITDA of approximately $900 million, and

  • Free cash flow of approximately $700 million.

My analysis

The stock has a $5.5 price target from the Point and Figure chart. There have been 19 insider sell transactions and eight insider buy transactions this year. The stock is trading at a forward P/E ratio of 25.77. I am not interested in shorting the stock before the $5.5 price target is hit.

2. CBS Corporation (NYSE:CBS) is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media. CBS owns the most-watched television network in the U.S. and one of the world's largest libraries of entertainment content, making its brand - "the Eye" - one of the most recognized in business. The company's operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media. CBS's businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), Showtime Networks, CBS Sports Network, Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Interactive, CBS Consumer Products, CBS Home Entertainment, CBS Films and CBS EcoMedia [From CBS's website].

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Insider sells

  • Leslie Moonves sold 300,000 shares on October 15 and 250,000 shares on August 15 pursuant to a Rule 10b5-1 trading plan previously adopted by the reporting person. Leslie Moonves is president and chief executive officer of CBS Corporation.

  • Louis Briskman sold 160,000 shares on August 15. Louis Briskman serves as the Executive Vice President and General Counsel of CBS Corporation.

Financials

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

Revenue $3.5 billion
Net income $427 million
Cash $1.9 billion
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Outlook

Leslie Moonves, President and Chief Executive Officer, CBS Corporation commented on August 2:

The good news is, there's so much more to come, and there are several important events just ahead. The U.S. presidential election will be a major factor in our second half results, and the London Olympics will give a considerable lift to our Outdoor business. And as we head into 2013, we will benefit from the Super Bowl, CBS's success in the upfront marketplace, as well as from a number of hit shows that will be sold into syndication. Plus, we are containing our costs and reducing our interest expense, and as a sign of the confidence we have in our future, we recently announced a significant increase in the amount of capital we are returning to our shareholders both through our ongoing dividend and accelerated share buyback program. For all of these reasons, we're confident 2012 will be a record year, and we will produce exceptional results in 2013 and beyond as well.

My analysis

The stock has a $66.5 price target from the Point and Figure chart. There have been 37 insider sell transactions and there has been one insider buy transaction since February 2012. The stock is currently trading at a P/E ratio of 15.50 and a forward P/E ratio of 11.87. I am not interested in shorting the stock before the $66.5 price target is hit.

3. Aegerion Pharmaceuticals (NASDAQ:AEGR) is an emerging biopharmaceutical company focused on the development and commercialization of novel, life-altering therapeutics to treat debilitating and often fatal rare diseases. The company's lead drug candidate, lomitapide, is in late-stage development for the treatment of Homozygous Familial Hypercholesterolemia [HoFH], a rare life-threatening disease characterized by severely elevated cholesterol levels [From Aegerion's website].

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Insider sells

Alta Biopharma Partners III sold 200,733 shares on October 15-16. Alta Biopharma Partners III is a 10% owner according to SEC filings.

Financials

The company reported the second-quarter financial results on August 8 with the following highlights:

Revenue $0
Net loss $13.9 million
Cash $100.6 million
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Outlook

The company is expecting cash burn of $43M - $48M for the full-year 2012.

Cash Flow Guidance:

  • Achievement of positive cash flow expected in 2014; assuming first cycle FDA approval in late 2012 and EMA approval in first half 2013

News

Aegerion Pharmaceuticals announced on October 17 that the Endocrinologic and Metabolic Drugs Advisory Committee [EMDAC] of the U.S. Food and Drug Administration [FDA] determined by a vote of 13 to 2 that Aegerion has presented sufficient safety and efficacy data to support marketing of its product, lomitapide, for the treatment of patients with Homozygous Familial Hypercholesterolemia [HoFH] when used as an adjunct to a low-fat diet and other lipid-lowering therapies.

The FDA has assigned a Prescription Drug User Fee Act [PDUFA] action date of December 29, 2012, for completion of its review of the New Drug Application [NDA] for lomitapide. The EMDAC provides the FDA with independent expert advice and recommendations. The FDA is not bound by the EMDAC's recommendation, but will consider the committee's recommendation as the FDA completes its review of the lomitapide NDA.

My analysis

The stock has a $30.5 price target from the Point and Figure chart. There have been 14 insider sell transactions and four insider buy transactions this year. Aegerion is expecting EMA approval in the first half of 2013 and the FDA approval on December 29, 2012. If Aegerion will be granted both the EMA and the FDA approval the stock could be trading above $25. With a unlikely CRL on December 29 the stock could fall below $10.

4. Apple (NASDAQ:AAPL) designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad [From Apple's website].

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Insider sells

  • Jeffrey Williams sold 4,014 shares on October 15-16 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on November 19, 2010. Jeffrey Williams is Senior Vice President of the company.

  • Millard Drexler sold 25,000 shares on August 31 and currently holds 584 shares of the company. Millard Drexler serves as a director of the company.

Financials

The company reported its fiscal 2012 third-quarter (ended June 30, 2012) financial results on July 24 with the following highlights:

Revenue $35.0 billion
Net income $8.8 billion
Cash $117.2 billion
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Outlook

Peter Oppenheimer, Apple's CFO commented on July 24:

Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65.

My analysis

The stock has a $705 price target from the Point and Figure chart. There have been 17 insider sell transactions and there have not been any insider buy transactions this year. The stock is currently trading at a P/E ratio of 15.15 and a forward P/E ratio of 12.06. The company has a book value of $119.22 per share. I am not interested in shorting the stock before the $705 level.

5. Oxford Industries (NYSE:OXM) is a global apparel company which designs, sources, markets and distributes products bearing the trademarks of its owned and licensed brands. Oxford's brands include Tommy Bahama, Lilly Pulitzer, Ben Sherman, Oxford Golf, Arnold Brant and Billy London. The company also holds exclusive licenses to produce and sell certain product categories under the Kenneth Cole, Geoffrey Beene, Dockers and Ike Behar labels. The company operates retail stores, restaurants and Internet websites. The company also has license arrangements with select third parties to produce and sell certain product categories under its Tommy Bahama, Lilly Pulitzer and Ben Sherman brands. Oxford's wholesale customers include department stores, specialty stores, national chains, specialty catalogs and Internet retailers [From Oxford's website].

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Insider sells

Reese Lanier sold 47,100 shares on October 15-16 and currently controls 269,281 shares of the company. Reese Lanier is a director of the company.

Financials

The company reported the second-quarter financial results on August 29 with the following highlights:

Revenue $206.9 million
Net income $5.0 million
Cash $4.6 million
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Outlook

For fiscal 2012, the company affirmed its previously issued guidance of adjusted earnings from continuing operations per diluted share in a range of $2.85 to $2.95 and net sales of $850 to $865 million. On a U.S. GAAP basis, earnings per diluted share are expected to be between $2.42 and $2.52.

For the third quarter, ending on October 27, 2012, the company anticipates net sales in a range from $175 to $185 million and adjusted earnings from continuing operations per diluted share of $0.18 to $0.23. On a U.S. GAAP basis, earnings per diluted share are expected to be between $0.16 and $0.21. Because of the impact of seasonality on the company's business, sales and earnings in the third quarter are typically lower than other quarters.

My analysis

The stock has a $96 price target from the Point and Figure chart. There have been nine insider sell transactions and there have not been any insider buy transactions this year. The stock is trading at a P/E ratio of 28.54 and a forward P/E ratio of 15.66. The company has a book value of $13.60 per share. I am not interested in shorting the stock before the $96 target price 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. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.