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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!