PetSmart, Inc. (PETM): Why Are This Company’s Insiders Selling Big?

There is also the threat of the e-tailer, which can provide similar products at lower costs and with greater convenience. Anecdotally, I recently switched my dog-food purchases to a Web-based retailer that delivers automatically every five weeks — and with no shipping cost. The company hit $1 million in monthly revenue early last year — 11 months after it launched.

Beware
The industry trend is very encouraging, and PetSmart continues to grow at an attractive rate. But be careful of the other forces emerging in this space, and keep in mind that the company insiders, likely its biggest supporters, are seemingly selling every share they get their hands on.

The article Why Are PetSmart’s Insiders Selling Big? originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale (NASDAQ:COST) and PetSmart. The Motley Fool owns shares of Costco Wholesale.

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