CalAmp: 6 Different Insiders Have Sold Shares This Year

In this article, I will feature one tech stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

1. The stock was sold by three or more insiders within one month.


2. The stock was not purchased by any insiders in the month of intensive selling.


3. At least two sellers decreased their holdings by more than 10%.

CalAmp Corp. (CAMP) develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communication and other applications primarily in the United States.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of CalAmp's insider-trading activity during the last 30 days by insider.

Name	Title	Trade Date	Shares Sold	Rule 10b5-1	Current Ownership	Decrease In Ownership
Kimberly Alexy	Director	Jan 23	10,000	No	44,931 shares	18.2%
Garo Sarkissian	SVP	Jan 2-23	10,000	No	165,762 shares	5.7%
Richard Vitelle	CFO	Jan 6	10,000	Yes	322,516 shares + 10,000 options	2.9%
Frank Perna	Director	Jan 2	8,300	Yes	257,922 shares	3.1%
Michael Burdiek	CEO	Jan 2	10,000	Yes	439,941 shares + 25,000 options	2.1%
Larry Wolfe	Director	Jan 2	25,000	No	86,931 shares	22.3%

There have been 73,300 shares sold by insiders during the last 30 days. Richard Vitelle, Frank Perna, and Michael Burdiek sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of CalAmp's insider-trading activity by calendar month.

Month	Insider selling / shares	Insider buying / shares
January 2014	73,300	0
December 2013	28,300	0
November 2013	34,440	0
October 2013	98,300	0
September 2013	18,300	0
August 2013	40,453	0
July 2013	38,045	0
June 2013	18,300	0
May 2013	74,494	0
April 2013	0	0
March 2013	5,000	0
February 2013	120,000	0
January 2013	17,500	0

There have been 566,432 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

CalAmp reported the fiscal 2014 third-quarter, which ended November 30, financial results on December 23 with the following highlights:

Revenue	$63.5 million
GAAP net income	$4.2 million
Cash	$31.1 million
Debt	$2.4 million

Outlook

CalAmp's fiscal 2014 fourth-quarter guidance is as follows:

Revenue	$60-$63 million
GAAP EPS	$0.08-$0.11
Non-GAAP EPS	$0.19-$0.23

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(Source: January presentation)

Competition

CalAmp's competitors include Motorola Solutions (MSI), and Sharp (OTCPK:SHCAY). Here is a table comparing these companies.

Company	CAMP	MSI	SHCAY
Market Cap:	1.07B	16.67B	4.14B
Employees:	340	21,000	50,647
Qtrly Rev Growth (yoy):	0.43	-0.02	0.14
Revenue:	224.45M	8.63B	34.52B
Gross Margin:	0.33	0.50	0.17
EBITDA:	24.01M	1.52B	2.47B
Operating Margin:	0.08	0.15	0.02
Net Income:	41.37M	1.09B	-2.06B
EPS:	1.20	3.95	-1.79
P/E:	25.52	16.30	N/A
PEG (5 yr expected):	1.61	2.08	N/A
P/S:	4.99	1.96	0.12

CalAmp has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company	Insider buying / shares	Insider selling / shares
MSI	0	94,112
SHCAY	N/A	N/A

Only CalAmp has seen intensive insider selling during the last 30 days.

Conclusion

There have been six different insiders selling CalAmp, and there have not been any insiders buying CalAmp during the last 30 days. Two of these six insiders decreased their holdings by more than 10%. CalAmp has an insider ownership of 4.30%.

There are five analyst buy ratings, one neural rating, and zero sell ratings with an average price target of $30.08. Before going short CalAmp, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are bearish analyst price targets, relatively high P/S ratio, and the intensive insider-selling activity.

Source: CalAmp: 6 Different Insiders Have Sold Shares This Year

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. (More...)

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