Welcome to edition 371 of Insider Weekends. With Q2 earnings season in full swing, we finally saw an uptick in insider buying with insiders purchasing $94.97 million of stock compared to $15.01 million in the week prior. Selling on the other hand decreased with insiders selling $651.35 million of stock last week compared to $1.28 billion 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 6.86. In other words, insiders sold almost 7 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 85.25.
I was hiking through the Purisima Creek Redwoods Preserve this weekend while listening to a Masters in Business podcast where Barry Ritholtz interviews Rich Barton, the cofounder of Expedia (EXPE), Zillow (Z) and Glassdoor. The interview was as absorbing as the ones I mentioned last week and it was interesting to hear Mr. Barton bring up Jay Hoag, the founding general partner at venture capital firm TCV. Mr. Hoag’s track record of purchasing Netflix (NFLX) and Zillow (Z) in the public market has been excellent. You can read more about his purchases of both these companies in the February 26, 2016 edition of Insider Weekends.
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. Lands End, Inc. (LE): $13.25
10% Owner Edward S. Lampert acquired 1,783,024 shares of this apparel retailer, paying $13.39 per share for a total amount of $23.87 million.
We also featured Mr. Lampert’s purchase of Lands End last week and wrote the following,
We normally don’t feature purchases by 10% owners but decided to make an exception in this case because of Mr. Lampert is the CEO of Sears Holdings (SHLD) and Land’s End was spun out of Sears in April 2014.
You can view the list of recent insider transactions for Lands' End, Inc. here.
P/E: -3.79 | Forward P/E: 38.97 | Industry P/E: 38.62 |
P/S: 0.32 | Price/Book: 1.6 | EV/EBITDA: N/A |
Market Cap: $424.39M | Avg. Daily Volume: 171,212 | 52 Week Range: $13.15 – $24.8 |
2. Sarepta Therapeutics, Inc. (SRPT): $40.81
President & CEO Douglas S. Ingram acquired 47,058 shares of this biotech company, paying $42.50 per share for a total amount of $1.99 million. Mr. Ingram increased his stake by 14.05% to 382,058 shares with this purchase.
Despite the size of the purchase, market reaction to this purchase was muted. Sarepta shareholders have been on wild rollercoaster ride over the last few years as the company developed a drug to treat Duchenne muscular dystrophy (DMD), a genetic disorder characterized by progressive muscle degeneration. Its drug to treat DMD was approved last September amid clashes within the FDA.
You can view the list of recent insider transactions for Sarepta Therapeutics, Inc. here.
P/E: -16.85 | Forward P/E: -24.73 | Industry P/E: 216.26 |
P/S: 39.5 | Price/Book: 5.22 | EV/EBITDA: N/A |
Market Cap: $2.24B | Avg. Daily Volume: 2,333,088 | 52 Week Range: $23.51 – $63.73 |
3. Tile Shop Holdings, Inc. (TTS): $14.65
Shares of this home improvement products retailer were acquired by 3 insiders:
We mentioned Mr. Kamin’s $2.29 million purchase of TTS last week and he was joined by two other insiders this week. He was also a frequent buyer of the stock in 2014 and especially in the fourth quarter of 2014 after a large decline in the stock that saw it trading in the high single digits.
You can view the list of recent insider transactions for Tile Shop Holdings, Inc. here.
P/E: 38.55 | Forward P/E: 21.87 | Industry P/E: 22.93 |
P/S: 2.26 | Price/Book: 5.21 | EV/EBITDA: N/A |
Market Cap: $759.7M | Avg. Daily Volume: 456,306 | 52 Week Range: $13.3 – $22.4 |
4. Dell Technologies Inc. (DVMT): $63.72
Chief Executive Officer Michael S. Dell acquired 33,567 shares of this VMWare tracking stock, paying $31.29 per share for a total amount of $1.05 million. Mr. Dell increased his stake by 9.04% to 404,973 shares with this purchase.
You can view the list of recent insider transactions for Dell Technologies Inc. here.
P/E: -16.22 | Forward P/E: 13.5 | Industry P/E: 14.96 |
P/S: 0.73 | Price/Book: 4.27 | EV/EBITDA: N/A |
Market Cap: $49.19B | Avg. Daily Volume: 1,626,766 | 52 Week Range: $42.02 – $69.72 |
5. General Electric Company (GE): $25.53
Shares of General Electric were acquired by 3 insiders:
You can view the list of recent insider transactions for General Electric Company here.
P/E: 26 | Forward P/E: 13.88 | Industry P/E: 22.83 |
P/S: 1.87 | Price/Book: 2.97 | EV/EBITDA: N/A |
Market Cap: $221.7B | Avg. Daily Volume: 39,786,030 | 52 Week Range: $25.26 – $32.38 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Floor & Decor Holdings, Inc. (FND): $35.54
Shares of this flooring products retailer were sold by 6 insiders:
You can view the list of recent insider transactions for Floor & Decor Holdings, Inc. here.
P/E: 66.31 | Forward P/E: 50.06 | Industry P/E: 21.33 |
P/S: 2.78 | Price/Book: 20.32 | EV/EBITDA: N/A |
Market Cap: $3.34B | Avg. Daily Volume: 605,331 | 52 Week Range: $0.09 – $46.95 |
2. Wayfair Inc. (W): $78.2
Shares of this ecommerce company were sold by 6 insiders:
You can view the list of recent insider transactions for Wayfair Inc. here.
P/E: -31.84 | Forward P/E: -104.27 | Industry P/E: 59.37 |
P/S: 1.88 | Price/Book: 185.31 | EV/EBITDA: N/A |
Market Cap: $6.77B | Avg. Daily Volume: 1,668,000 | 52 Week Range: $27.6 – $80.4 |
3. Monro Muffler Brake, Inc. (MNRO): $45.8
Shares of this auto repair services provider and tire retailer were sold by 2 insiders:
You can view the list of recent insider transactions for Monro Muffler Brake, Inc. here.
P/E: 24.78 | Forward P/E: 19.08 | Industry P/E: 32.11 |
P/S: 1.41 | Price/Book: 2.58 | EV/EBITDA: N/A |
Market Cap: $1.5B | Avg. Daily Volume: 542,612 | 52 Week Range: $39.65 – $63.2 |
4. Criteo S.A. (CRTO): $51.42
Executive Chairman Jean-Baptiste Rudelle sold 150,000 shares of this digital performance marketing company for $50.56, generating $7.58 million from the sale.
You can view the list of recent insider transactions for Criteo S.A. here.
P/E: 44.06 | Forward P/E: 16.69 | Industry P/E: 38.88 |
P/S: 1.74 | Price/Book: 5.04 | EV/EBITDA: N/A |
Market Cap: $3.33B | Avg. Daily Volume: 811,441 | 52 Week Range: $32.83 – $56 |
5. Lindsay Corporation (LNN): $91.69
President and CEO Rick Parod sold 77,387 shares of this water management and road infrastructure products and services provider for $91.47, generating $7.08 million from the sale.
You can view the list of recent insider transactions for Lindsay Corporation here.
P/E: 39.73 | Forward P/E: 30.06 | Industry P/E: 28.99 |
P/S: 1.89 | Price/Book: 3.72 | EV/EBITDA: N/A |
Market Cap: $980.13M | Avg. Daily Volume: 80,312 | 52 Week Range: $69.11 – $95.04 |
You can view the full list of sales from this Insider Sales page.
Disclaimer: 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.
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