Welcome to the fifth edition of Insider Weekends. We saw a reversal of roles last week with insider buying dropping precipitously from $59 million to just $6.6 million last week even as the Dow posted its best week in a year with a gain of 5.3%. One could attribute this drop to the short four day week. However insider selling picked up in pace with insiders selling $217.5 million worth of stock.
The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider buying in that week. The adjusted ratio for last week jumped up to 32.90. In other words, insiders sold almost 33 times as much stock as they purchased. This compares unfavorably with the week prior when the ratio stood at just 2.55. We are calculating an adjusted ratio by removing transactions by funds and trying as best as possible only to retain information about insiders and 10% owners who are not funds.
Notable Insider Buys Last Week:
1. China Marine Food Group Ltd. (CMFO) $4.74
For the second week in a row, CMFO made it into the top 5 insider purchases of the week. CEO Pengfei Liu acquired 110,000 shares of this food processing and packaging company paying an average of $4.34 per share for a total amount of $477,400. 10% holder Kent C McCarthy also acquired 65,000 shares paying an average of $4.15 per share for a total amount of $269,830. These purchases are perplexing in light of the critical articles that have been written an anonymous short seller called “Chinese Company Analyst”. Check out his recent article titled “China Marine Food Group: Auditor’s Role in Another Alleged Fraud“.
|P/E: 7.74||Forward P/E: 4.51||Industry P/E: N/A|
|P/S: 1.74||Price/Book: 1.36||EV/EBITDA: 4.72|
|Market Cap: $135.05 million||Avg. Daily Volume: 327,503||52 Week Range: $3.07 – $8.63|
2. Agilysys (AGYS) $7.52
Agilysys makes its appearance on our list for a third week in a row with Director Andrew Cueva acquiring 98,233 shares of this IT services provider through his fund MAK Capital, paying $7.17 per share for a total amount of $704,189.
|P/E: 48.83||Forward P/E: 22.12||Industry P/E: 19.47|
|P/S: 0.27||Price/Book: 0.86||EV/EBITDA: 16.29|
|Market Cap: $172.48 million||Avg. Daily Volume: 171,227||52 Week Range: $3.95 – $12.50|
3. NL Industries (NL) $7.17
Chairman of the Board and CEO Harold C Simmons acquired 103,100 shares of this components products manufacturer company paying $6.54 per share for a total amount of $674,170.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 13.59|
|P/S: 2.85||Price/Book: 1.86||EV/EBITDA: 276.56|
|Market Cap: $348.61 million||Avg. Daily Volume: 43,436||52 Week Range: $5.35 – $9.00|
4. Actel Corporation (ACTL) $13.74
Director Jeffrey C Smith acquired 39,694 shares of this specialized semiconductor company paying $12.61 per share for a total amount of $500,352.
|P/E: N/A||Forward P/E: 10.73||Industry P/E: 22.05|
|P/S: 1.80||Price/Book: 1.48||EV/EBITDA: 14.89|
|Market Cap: $360.58 million||Avg. Daily Volume: 99,244||52 Week Range: $10.25 – $17.10|
5. Kronos Worldwide (KRO) $19.34
Chairman of the Board Harold C Simmons acquired 8,471 shares of this Titanium Dioxide producer paying $19.26 per share for a total amount of $163,193.
|P/E: 27.32||Forward P/E: 32.78||Industry P/E: 11.77|
|P/S: 0.78||Price/Book: 2.68||EV/EBITDA: 20.60|
|Market Cap: $947.08 million||Daily Volume: 7,888||52 Week Range: $5.44 – $21.01|
Notable Insider Sales Last Week:
1. Hans Natural Corporation (HANS) $42.73
Chairman & CEO, Rodney Sacks sold 300,000 shares of this beverage company, generating $12.6 million at an average selling price of $42.09. Vice Chairman & President, Hilton Schlosberg also sold 296,500 shares, generating $12.5 million at an average selling price of $42.09
|P/E: 20.13||Forward P/E: 16.50||Industry P/E: 17.23|
|P/S: 3.28||Price/Book: 5.87||EV/EBITDA: 10.32|
|Market Cap: $3.79 billion||Avg. Daily Volume: 1,133,400||52 Week Range: $24.01 – $44.99|
2. SuccessFactors (SFSF) $20.91
CEO & President, Lars Dalgaard sold 101, 250 shares, generating $2.05 million at an average selling price of $20.23. CFO Bruce C Felt Jr. also sold 10,000 shares, generating $203,154 at a selling price of $20.32. CIO & VP, Operations, Randall Womack sold 12,000 shares of this software-as-a-service (SAAS) provider, generating $244,468 at a selling price of $20.37. These were all planned sales under the 10b-5 rule. However this week, the amount sold by the CEO was much larger than the 27,000 shares per month he has been selling over the last few months.
|P/E: N/A||Forward P/E: 149.36||Industry P/E: 23.98|
|P/S: 9.23||Price/Book: 7.28||EV/EBITDA: -178.54|
|Market Cap: $1.51 billion||Avg. Daily Volume: 805,750||52 Week Range: $8.30 – $23.68|
3. Boston Scientific Corporation (BSX) $6.46
Director and founder John Abele, sold 300,000 shares of this Medical Instruments & Supplies company, generating $1.8 million at an average selling price of $6.03. Director and founder Peter Nicholas also sold 100,000 shares, generating $601,898 at an average selling price of $6.02. Once again these were planned sales under the 10b-5 rule. These two insiders have been selling a combined 100,000 shares every single day for the last few weeks.
|P/E: N/A||Forward P/E: 15.76||Industry P/E: 20.68|
|P/S: 1.19||Price/Book: 0.90||EV/EBITDA: 7.39|
|Market Cap: $9.80 billion||Avg. Daily Volume: 25,813,800||52 Week Range: $5.41 -$11.77|
4. OpenTable (OPEN) $44.85
Senior VP, Operations, Joel T. Brown sold 23,500 of this restaurants reservation solutions provider, generating $967,920 at an average selling price of $41.2. Senior VP, Sales, Michael E. Dodson also sold 19,000 shares, generating $783,902 at a selling price of $41.26. CFO Matthew Roberts sold 7,000 shares, generating $289,450 at a selling price of $41.35 and Senior VP, Engineering sold 5,834 shares, generating $239,264 at a selling price of $41.01. These were planned sales under the 10b-5 rule. For some interesting analysis by a hedge fund analyst regarding OpenTable’s valuation, check out this articled titled “What is Priced into OpenTable’s Valuation?”
|P/E: 154.66||Forward P/E: 57.50||Industry P/E: 23.24|
|P/S: 13.43||Price/Book: 12.35||EV/EBITDA: 57.44|
|Market Cap: $1.02 billion||Avg. Daily Volume: 232,092||52 Week Range: $24.04 – $45.68|
5. EnerNOC (ENOC) $33.68
President David B. Brewster sold 50,000 shares of this energy management solutions provider, generating $1.65 million at an average selling price of $33.05.
|P/E: N/A||Forward P/E: 39.62||Industry P/E: 23.24|
|P/S: 4.05||Price/Book: 4.29||EV/EBITDA: 204.27|
|Market Cap: $829.17 million||Avg. Daily Volume: 331,361||52 Week Range: $17.91 – $37.00|
Contributing author: Ann Kumar