Insider Selling at Delphi Automotive PLC (DLPH)

Page 1 of 2

We believe that insiders have the greatest insight into the fundamental health of a company, and so we follow closely insider transactions. It has been shown that insiders tend to outperform the market by as much as 7% annually (read more about how this strategy can boost your returns).

In a recent Form 4 filing with the SEC, four directors were selling off shares of Delphi Automotive PLC (NYSE:DLPH). These four directors – Nicholas Donofrio, Gary Cowger, Bernd Wiedemann, and John Krol – sold off over 87,000 shares in the range of $33.75-$34.10. Krol was the biggest seller, dumping over 50,000 shares – 33% of his shares.

Paul Singer ELLIOTT MANAGEMENT

Insider selling in Delphi shares has been robust in 2012, and includes big cuts by its largest shareholders, billionaires John Paulson and Paul Singer. Paulson sold off 29% (2Q) followed by 22% (3Q) over the past two quarters. Billionaire Paul Singer – founder of Elliott Management – dumped 18% of his shares in 2Q and then 17% in 3Q (check out Paul Singer’s latest market moves). Other notable large insider trades include four insiders that have sold off 100,000 collectively through the month of November.

Delphi is already up 60% year to date, but still only trades at 9x earnings. This is below some of its top peers, including Johnson Controls (16x) and Visteon (76x). Delphi’s 3Q results came in at $0.84 versus $0.72 from the same quarter last year and well above consensus of $0.73. Despite this recent success and a relatively low P/E, 4Q guidance was lowered on weak European production expectations – estimates predict a 15% declination year over year. EPS is now expected to be in the range of $0.79-0.89 versus previous consensus of $0.99. Delphi also expects to have to spent $250 million for restructuring, with part going to help integrate its recent acquisition of FCI Group’s motorized vehicles division (MVL).

Johnson Controls, Inc. (NYSE:JCI), Visteon Corporation (NYSE:VC), Lear Corporation (NYSE:LEA) and Autoliv Inc. (NYSE:ALV) are some of Delphi’s closest peers. Johnson Controls is the largest of our five auto parts companies with an $18 billion market cap, but it is also down over 10% year to date. Johnson’s dividend yield of 2.7% and solid growth makes it a generally attractive investment, and on the back of increasing auto sales, Johnson expects to grow revenues by 4.6% in 2013.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!