I screened with Open Insider for insider sell transactions filed on September 26. I then checked with Stock Charts if the stocks had bearish Point and Figure counts. Bearish Point and Figure counts mean that the price objective is below the current market price. 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. C. R. Bard (NYSE:BCR) is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.
Mason Morfit sold 208,296 shares on September 24-26 and currently controls 4,572,298 shares of the company. Mason Morfit serves as a director of the company.
The company reported the second-quarter financial results on July 25 with the following highlights:
|Net income||$133.9 million|
Christopher S. Holland, Chief Financial Officer and Senior Vice President, commented on July 25 earnings call:
Moving to financial guidance. For Q3, we expect constant currency sales growth between 3% and 5%. The sales environment is certainly challenging particularly in the U.S., and we are being appropriately cautious in this environment. While our full year sales guidance remains unchanged, realistically, we are now focused on achieving growth at the lower end of that range, which as you recall called for constant currency sales growth of 4%.
From an EPS standpoint, excluding items affecting comparability, we see the third quarter in the range of $1.60 to $1.64 per share. For the full year, we still expect to achieve the full year earnings guidance range of 3% to 4% growth, which we provided to you in December, which excluded the renewal of the R&D tax credit. As a reminder, we estimate the tax credit is worth about $4 million or slightly less than 1% of incremental EPS growth.
The stock has a bearish $78 price target from the Point and Figure chart. There have been 39 insider sell transactions and there has been one insider buy transaction this year. The stock is trading at a forward P/E ratio of 14.67. There is an opportunity for a short entry with the $78 target price and a stop loss at $110.
2. Kellogg Company (NYSE:K) is the world's leading producer of cereal, second largest producer of cookies and crackers and - through the May 2012 acquisition of the iconic Pringles business - the world's second largest savory snacks company. In addition, Kellogg is a leading producer of frozen foods. Every day, the company's well-loved brands - produced in 18 countries and marketed in more than 180 countries - nourish families so they can flourish and thrive. With 2011 sales of more than $13 billion, these brands include Cheez-It, Coco Pops, Corn Flakes, Eggo, Frosted Flakes, Kashi, Keebler, Kellogg's, Mini-Wheats, Pop-Tarts, Pringles, Rice Krispies, Special K, and many more.
Kellogg W K Foundation Trust sold 60,000 shares on September 25 pursuant to trading instructions, given by the W.K. Kellogg Foundation Trust on May 9, 2012, that are intended to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934. Kellogg W K Foundation Trust currently holds 76,564,190 shares of Kellogg Company. Kellogg Company has 357,735,254 shares outstanding which makes Kellogg W K Foundation Trust a 21.4% owner of Kellogg Company.
The company reported the second-quarter financial results on August 2 with the following highlights:
|Net income||$301 million|
The company reaffirmed its guidance on August 2 for full-year internal net sales growth of between two and three percent. In addition, the company continues to expect that full-year internal operating profit will decline between two and four percent. Expectations remain for full-year, as-reported earnings per share to be in a range between $3.18 and $3.30 per share, including the anticipated impact of the Pringles acquisition.
The stock has a bearish $40 price target from the Point and Figure chart. There have been 38 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 14.44 and has a 3.40% dividend yield. There is an opportunity for a short entry with the $40 target price and a stop loss at $55.
3. Garmin (NASDAQ: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.
Min Kao sold 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 Kaoco-founded Garmin Corporation with Gary Burrell in October 1989 to integrate Global Positioning System [GPS] technology into navigation devices for multiple markets.
The company reported the second-quarter financial results on August 1 with the following highlights:
|Net income (Pro Forma)||$192.9 million|
The company updated its 2012 guidance on August 1. The new 2012 guidance is:
|Revenue||$2.75 billion to $2.80 billion|
|EPS (Pro Forma)||$2.70 - $2.85|
The stock has a $21 price target from the Point and Figure chart. There have been 51 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 13.99. There is an opportunity for a short entry with the $21 target price and a stop loss at $50.
4. Proto Labs (NYSE:PRLB) is a leading online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. Proto Labs provides "Real Parts, Really Fast" to product developers worldwide. Proto Labs utilizes computer numerical control [CNC] machining and injection molding to manufacture custom parts for its customers.
- Bradley Cleveland sold 9,000 shares on September 24-25 pursuant to a Rule 10b5-1 trading plan adopted by the applicable trust on August 3, 2012. Mr. Cleveland has served as President and Chief Executive Officer of the company since November 2001.
- John Tumelty sold 35,000 shares on September 21-25. John Tumelty serves as a managing director of the company.
The company reported the second-quarter financial results on July 24 with the following highlights:
|Net income||$5.1 million|
The stock has a bearish $24 price target from the Point and Figure chart. There have been 17 insider sell transactions and there has been one insider buy transaction this year. The stock is trading at a forward P/E ratio of 37.30. There is an opportunity for a short entry with the $24 price target and a stop loss at $42.
5. Susser Holdings Corporation (NYSE:SUSS) is the 11th-largest company-operated convenience store chain in the U.S. The company operates more than 550 convenience stores in Texas, New Mexico and Oklahoma under the Stripes brand, offering motor fuel, merchandise, food service under Laredo Taco Company brand and other services.
Susser Holdings has delivered consistently strong financial and operating results, with 23 consecutive years of same-store merchandise sales growth. Since Susser Holdings' IPO in 2006, adjusted EBITDA has more than tripled, and last year the company ranked No. 5 in total shareholder return among Fortune 500 companies.
Susser Holdings is majority owner and owns the general partner of Susser Petroleum Partners LP (SUSP) a master limited partnership [MLP] created in 2012 that is the largest independent wholesale fuel distributor in Texas. Susser Petroleum Partners distributes over 1.4 billion gallons of motor fuel annually from major oil companies and independent refiners to Stripes convenience stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma and Louisiana.
Mary Sullivan sold 5,324 shares on September 24 pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on August 23, 2012. Mary Sullivan is Executive Vice President, Chief Financial Officer and Treasurer of the company.
The company reported the second-quarter financial results on August 8 with the following highlights:
|Net income||$29.8 million|
The company's guidance for full-year 2012 is as follows:
|Merchandise Same-Store Sales Growth||5.5%-7.5%|
|Retail Average Per-Store Gallons Growth||4.5%-6.5%|
|New Retail Stores||26-29|
|New Wholesale Dealer Sites||28-35|
The stock has a bearish $28 price target from the Point and Figure chart. There have been eight 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 18.80. The company has a book value of $17.50 per share. There is an opportunity for a short entry with the $28 price target and a stop loss at $40.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in PRLB over 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.