Insider Weekends – Berkshire Hathaway adds to its Liberty SiriusXM Stake

Welcome to edition 358 of Insider Weekends. Insider buying increased significantly with insiders buying $318.69 million of stock compared to $58.58 million in the week prior. The majority of this buying was driven by Berkshire Hathaway adding to its Liberty SiriusXM stake as discussed below. Selling also increased with insiders selling $400.52 million of stock last week compared to $386.44 million in the week prior.

Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week dropped to 1.26. In other words, insiders sold about as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 6.6.

Insider Sell Buy Ratio April 28, 2017

Insider Sell Buy Ratio April 28, 2017

Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

Notable Insider Buys:

1. The Liberty SiriusXM Group (LSXMA): $38.1

Member of 10% owner group Ted R. Weschler acquired 6,345,128 shares of this broadcasting company, paying $39.95 per share for a total amount of $253.50 million. These shares were purchased indirectly by Berkshire Hathaway (BRK-A) and included purchases of both series C (LSXMK) and series A (LSXMA) stock.

Ted Weschler is one of two lieutenants Warren Buffett and Charlie Munger picked to manage investment portfolios of about $10 billion each. This interview from last week with Mr. Buffett, Mr. Weschler and Mr. Combs is worth checking out.

You can view the list of recent insider transactions for The Liberty SiriusXM Group here.

P/E: 30.9 Forward P/E: 17.8 Industry P/E: 25.81
P/S: 2.54 Price/Book: 1.27 EV/EBITDA: 11.24
Market Cap: $12.75B Avg. Daily Volume: 484,841 52 Week Range: $29.26 – $41.39

2. CSX Corporation (CSX): $50.84

CEO & President E. Hunter Harrison acquired 300,000 shares of this railroad company, paying $50.20 per share for a total amount of $15.06 million.

Mr. Hunter was appointed CEO of CSX last month and is well respected in the industry as a turnaround specialist. His request for a large pay package drew a lot of criticism when it was first announced and this Fortune article provides a lot of additional color about both the nature of the pay package and why he is likely to get it.

You can view the list of recent insider transactions for CSX Corporation here.

P/E: 27.75 Forward P/E: 18.76 Industry P/E: 24.96
P/S: 4.14 Price/Book: 4.02 EV/EBITDA: 11.68
Market Cap: $46.91B Avg. Daily Volume: 9,340,455 52 Week Range: $24.43 – $51.66

3. Eastman Kodak Company (KODK): $11

Shares of this global commercial printing and imaging company were acquired by two insiders:

  • Director George Karfunkel acquired 835,706 shares, paying $10.75 per share for a total amount of $8.98 million. Mr. Karfunkel increased his stake by 61.10% to 2,203,376 shares with this purchase.
  • 10% Owner Moses Marx acquired 454,500 shares, paying $10.75 per share for a total amount of $4.89 million.

You can view the list of recent insider transactions for Eastman Kodak Company here.

P/E: 38.73 Forward P/E: N/A Industry P/E: 89.56
P/S: 0.3 Price/Book: N/A EV/EBITDA: 1.54
Market Cap: $466.96M Avg. Daily Volume: 179,687 52 Week Range: $9.55 – $17.3

4. Twitter, Inc. (TWTR): $16.48

Chief Executive Officer Jack Dorsey acquired 574,002 shares of Twitter, paying $16.62 per share for a total amount of $9.54 million. These shares were purchased indirectly through a trust.

This is the second significant insider purchase by Mr. Dorsey in recent months and both purchases followed large sales of Square (SQ), where he also serves as CEO. You can see all his insider transactions across companies here. He announced both purchases on Twitter, which is a unusual as companies and CEOs don’t normally explicitly draw attention to their purchases and let the action speak for itself.

After his first $7 million purchase I tweeted that he also sold $15.74 million worth of Twitter stock in 2014-2015. With this purchase, his total purchases for this year are now at $16.54 million. I am long the stock and recently wrote an article about the 10 things worth celebrating about Twitter.

You can view the list of recent insider transactions for Twitter, Inc. here.

P/E: -25.31 Forward P/E: 42.26 Industry P/E: 36.29
P/S: 4.72 Price/Book: 2.56 EV/EBITDA: 136.13
Market Cap: $11.94B Avg. Daily Volume: 19,400,061 52 Week Range: $13.73 – $25.25

5. Mattel, Inc. (MAT): $22.42

Director Dean A. Scarborough acquired 47,000 shares of Mattel, paying $21.95 per share for a total amount of $1.03 million. Mr. Scarborough increased his stake by 153.73% to 77,573 shares with this purchase.

You can view the list of recent insider transactions for Mattel, Inc. here.

P/E: 28.13 Forward P/E: 14.95 Industry P/E: 30.3
P/S: 1.44 Price/Book: 3.47 EV/EBITDA: 12.27
Market Cap: $7.68B Avg. Daily Volume: 5,678,255 52 Week Range: $21.55 – $34.24

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. NVR, Inc. (NVR): $2

Shares of this construction company were sold by 3 insiders:

  • Chief Executive Officer Paul C. Saville sold 5,000 shares for $2093.14, generating $10.47 million from the sale.
  • Director Manuel H. Johnson sold 1,302 shares for $2092.71, generating $2.72 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director David A. Preiser sold 1,302 shares for $2070.07, generating $2.69 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for NVR, Inc. here.

P/E: 18.68 Forward P/E: 13.84 Industry P/E: 14.63
P/S: 1.32 Price/Book: 5.6 EV/EBITDA: 10.9
Market Cap: $7.89B Avg. Daily Volume: 26,626 52 Week Range: $1,478.04 – $2,191.75

2. The Charles Schwab Corporation (SCHW): $38.85

Shares of this investment brokerage were sold by 3 insiders:

  • Chairman Charles R. Schwab sold 300,000 shares for $40.25, generating $12.08 million from the sale. These shares were sold indirectly through a trust.
  • Director Stephen T. McLin sold 7,823 shares for $39.69, generating $310,518 from the sale.
  • Director Nancy H. Bechtle sold 7,823 shares for $39.85, generating $311,710 from the sale.

You can view the list of recent insider transactions for The Charles Schwab Corporation here.

P/E: 27.55 Forward P/E: 20.03 Industry P/E: 32.15
P/S: 6.68 Price/Book: 3.8 EV/EBITDA: N/A
Market Cap: $51.93B Avg. Daily Volume: 8,384,949 52 Week Range: $23.83 – $43.65

3. KITE PHARMA, INC. (KITE): $82.08

Shares of this biotech company were sold by 2 insiders:

  • Director Farah Champsi sold 123,913 shares for $82.67, generating $10.24 million from the sale. These shares were sold indirectly by Alta Partners Management.
  • Chief Operating Officer Cynthia M. Butitta sold 15,000 shares for $81.85, generating $1.23 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for KITE PHARMA, INC. here.

P/E: -15.04 Forward P/E: -13.2 Industry P/E: 58.4
P/S: 203.01 Price/Book: 9.61 EV/EBITDA: -14.26
Market Cap: $4.5B Avg. Daily Volume: 1,589,823 52 Week Range: $39.82 – $88.58

4. Six Flags Entertainment Corporation (SIX): $62.61

Shares of this theme park operator were sold by 2 insiders:

  • Exec. Chairman James Reid-Anderson sold 78,992 shares for $65.04, generating $5.14 million from the sale.
  • Senior VP – Marketing Brett Petit sold 20,000 shares for $64.95, generating $1.29 million from the sale.

You can view the list of recent insider transactions for Six Flags Entertainment Corporation here.

P/E: 54.87 Forward P/E: 26.87 Industry P/E: 46.72
P/S: 4.39 Price/Book: N/A EV/EBITDA: 18.15
Market Cap: $5.73B Avg. Daily Volume: 806,423 52 Week Range: $47.61 – $65.19

5. CRITEO S.A. (CRTO): $54.39

Shares of this digital performance marketing company were sold by 2 insiders:

  • Executive Chairman Jean-Baptiste Rudelle sold 95,897 shares for $52.00, generating $4.99 million from the sale.
  • Chief Executive Officer Eric Eichmann sold 20,000 shares for $52.00, generating $1.04 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for CRITEO S.A. here.

P/E: 43.51 Forward P/E: 16.94 Industry P/E: 44.86
P/S: 1.93 Price/Book: 5.8 EV/EBITDA: 17.77
Market Cap: $3.48B Avg. Daily Volume: 597,871 52 Week Range: $32.83 – $55.26

You can view the full list of sales from this Insider Sales page.

Disclaimer: I hold a long position in Twitter (TWTR). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria

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