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 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!