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Insider Sells at 52-Week Highs

April 12, 2014 | About:
Monica Wolfe

Monica Wolfe

122 followers

Over the past week there have been some notable insider sells coming from companies trading at historically high prices. The following three companies have all reported insider sells over the past week that come as their company’s price hits or comes within 5% of its 52-week high.

Deere & Co. (DE)

Over the past week there were three insiders making sells of their stake in Deere & Co. These were all sizeable sells and come as the company’s share price has exceeded its previous 52-week high. These sells are also the first reported insider transactions for the company since August 2013.

Over the past week Senior Vice President Jean Giles made two sells, selling a total of 22,650 shares of the company’s stock. She sold these shares in the price range of $92.72 to $92.74 per share. Giles raked in a total of $2,100,370 on these two sells, and since her most recent sell on April 8, the price per share has dropped a slight -0.01%.

Also over the past week, President James Field made a sell of 13,380 shares. He sold these at approximately $92.56 per share for a total transaction amount of $1,238,453. Since his sell the price per share has increased a minor 0.18%. Field now maintains at least 64,550 shares of the company’s stock.

Lastly, Chairman and CEO Samuel Allen made the largest sell, selling 32,371 shares of Deer & Co. stock. He sold these shares at an average price of $92.02 per share, and since then the price per share is up 0.77%. Allen now holds on to 280,151 shares of the company’s stock.

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Deere & Co. is a provider of advanced products and services for agriculture and forestry and a major provider of advanced products and services for construction, lawn and turf care, landscaping and irrigation.

Deere’s historical revenue and net income:

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The analysis on Deere & Co. reports that the company’s operating margin is expanding, its dividend yield is near a 3-year high and its P/B and P/S ratios are also trading at near 3-year highs. The analysis also notes that the company’s revenue has slowed down over the past year, its price is near a 10-year high and over the past three years the company has issued $11 billion of debt.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Deere & Co. has a market cap of $34.02 billion. Its shares are currently trading at around $92.01 with a P/E ratio of 10.10, a P/S ratio of 0.90 and a P/B ratio of 3.40. The dividend yield at Deere & Co. is at 2.20%, and over the past ten years the company has seen an annual average earnings growth of 11.40%.

GuruFocus rated the company the business predictability rank of 5-star.

Willis Lease Finance Corporation (WLFC)

Over the past week CEO Charles Willis made two notable sells of his stake in his company Willis Lease Finance Corporation. These sells come as the company’s price has fallen slightly from its 52-week high.

On April 7, Willis sold 7,555 shares at an average price of $20.20 per share. This transaction raked in a notable $152,611 for the CEO. Since this sell the price per share has dropped a minor -0.05%.

On April 9, Willis sold a much larger 28,003 shares of Willis stock. He sold these shares at an average price of $19.84 per share for a total transaction amount of $555,580. Since this sell the price per share has risen approximately 1.76%. Willis now holds on to 2,736,071 shares of the company’s stock.

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Willis Lease Finance, with its subsidiaries, is a leasor of commercial aircraft engines. The company's core business is acquiring and leasing pursuant to operating leases, commercial aircraft engines and related aircraft equipment, and the selective sale of such engines.

Willis Lease Finance’s historical revenue and net income:

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The analysis on Willis Lease reports that the company has issued $70.45 million of debt over the past three years, its price is close to a 10-year high, and the company has had operating loss over the past three years as well.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Willis Lease Finance Corporation has a market cap of $169.8 million. Its shares are currently trading at around $20.13 with a P/E ratio of 10.60, a P/S ratio of 1.10 and a P/B ratio of 0.80.

Whiting Petroleum (WLL)

Over the past week there were two insiders making buys into Whiting Petroleum. These buys come as the company’s price exceeded its previous 52-week high and is inching closer to its 10-year high.

Treasurer Brent Jensen added 900 shares to his holdings at $73 per share. This transaction raked in $65,700 for the treasurer. Since his sell the price per share has dropped approximately -2.19%. Jensen now holds on to 26,878 shares of the company’s stock.

Director Sherwin Artus added 1,000 shares to her holdings. Artus bought these shares for $72.65 per share for a total transaction amount of $72,650. Since her buy the price per share has dropped a slight -1.72%. Artus now holds on to 48,173 shares of the company’s stock.

The Company is an independent oil and natural gas company engaged in exploitation, acquisition, exploration and production activities mainly in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast and Michigan regions of the United States.

Whiting Petroleum’s historical revenue and net income:

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The analysis on Whiting Petroleum reports that the company has shown predictable revenue and earnings growth, its price is near a 10-year high and the company has issued $1.8 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Whiting Petroleum has a market cap of $8.43 billion. Its shares are currently trading at around $70.86 with a P/E ratio of 23.10, a P/S ratio of 3.00 and a P/B ratio of 2.20. Whiting Petroleum had an annual average earnings growth of 11.70% over the past ten years.

GuruFocus rated the company the business predictability rank of 4-star.

You can check out more insider buys by looking at the GuruFocus Insider Page. Or for more specific information, you can check out the GuruFocus All-in-One Screener under the Insider tab.

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Comments

DouginHartford
DouginHartford premium member - 4 months ago

Monica, help me understand how you calculate that Deere is overvalued on the basis of the Peter Lynch chart, which shows a PE at 15 would be $138 and current stock price is at $92. Actually,the 10-year financial data table shows a PLFV at about $199 currently, indicating even greater undervaluation per PLFV/Price

How do you figure "Overvalued" for DE in your analysis?

Thanks for the clarification.

Doug

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