Welcome to edition twenty one of Insider Weekends. Insider buying increased slightly last week with insiders purchasing $3.42 million of their stock when compared to $3.05 million in the week prior. Selling also increased with insiders selling $987.33 million worth of stock when compared to $567.34 million in the week prior.
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 went up to 289.1. In other words, insiders sold more than 289 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 186.1. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.
Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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. American Express Company (AXP): $41.46
Director Theodore Leonsis acquired 20,000 shares of AmEx, paying $39.38 per share for a total amount of $787,648. Two other directors have purchased stock since the start of the year.
|P/E: 13.5||Forward P/E: 11.12||Industry P/E: 11.75|
|P/S: 2.04||Price/Book: 3.1||EV/EBITDA: N/A|
|Market Cap: $49.92B||Avg. Daily Volume: 12,013,100||52 Week Range: $34.58 – $49.19|
2. Liberty Property Trust (LRY): $33.46
Director Stephen Steinour acquired 11,800 shares of this REIT, paying $33.48 per share for a total amount of $395,064. Mr. Steinour more than doubled his holdings to 22,855 shares following this purchase. This is the second purchase by him this year following a February purchase of 10,000 shares. Most of the other insider transactions have been sales. This office REIT has a yield of 5.64%, which is much better than the yield of most REITs.
|P/E: 83.23||Forward P/E: 12.35||Industry P/E: 50.19|
|P/S: 5.07||Price/Book: 1.83||EV/EBITDA: 13.1|
|Market Cap: $3.81B||Avg. Daily Volume: 990,026||52 Week Range: $27.18 – $35.35|
3. Beneficial Mutual Bancorp Inc. (BNCL): $7.34
Shares of this bank holding company were acquired by two insiders:
|P/E: N/A||Forward P/E: 30.58||Industry P/E: 15.03|
|P/S: 5.33||Price/Book: 0.89||EV/EBITDA: N/A|
|Market Cap: $569.15M||Avg. Daily Volume: 120,011||52 Week Range: $7.2 – $11.05|
4. QLogic Corp. (QLGC): $17.58
Director William Zeitler acquired 10,000 shares of this semiconductor company, paying $16.93 per share for a total amount of $169,300. Mr. Zeitler was appointed as a director last month and hence I would not read too much into this purchase.
|P/E: 25.22||Forward P/E: 12.04||Industry P/E: 22.16|
|P/S: 3.2||Price/Book: 3.48||EV/EBITDA: 9.47|
|Market Cap: $1.90B||Avg. Daily Volume: 2,612,120||52 Week Range: $14.3 – $22.4|
5. Lakeland Bancorp Inc. (LBAI): $9.27
Director Stephen R Tilton Sr acquired 13,100 shares of this bank holding company, paying $9.14 per share for a total amount of $119,734.
This regional bank stands out amongst the rest of its group because the company recently increased its dividend by 20% to 24 cents per year. The yield following this increase is 2.58%. According to the company, the book value per share is $9.28. On August 4th the bank paid back $20 million of the $59 million in TARP funds it had taken in February 2009. The Troubled Asset Ratio (TAR) for this New Jersey based bank is 15.20, very close to the national median of 15.
|P/E: 18.36||Forward P/E: 11.3||Industry P/E: 15.03|
|P/S: 2.22||Price/Book: 0.99||EV/EBITDA: N/A|
|Market Cap: $223.05M||Avg. Daily Volume: 41,002||52 Week Range: $5.38 – $11.35|
Notable Insider Sales:
1. Oracle Corp. (ORCL): $29.38
Shares of this enterprise software company were sold by four insiders:
|P/E: 23.45||Forward P/E: 13.42||Industry P/E: 28.09|
|P/S: 5.04||Price/Book: 4.6||EV/EBITDA: 11.98|
|Market Cap: $147.70B||Avg. Daily Volume: 36,881,800||52 Week Range: $20.65 – $29.71|
2. Apple Inc. (AAPL): $300.98
Shares of this personal computers company were sold by three insiders:
|P/E: 19.86||Forward P/E: 13.7||Industry P/E: 19.86|
|P/S: 4.29||Price/Book: 5.85||EV/EBITDA: 12.94|
|Market Cap: $276.09B||Avg. Daily Volume: 18,810,200||52 Week Range: $185.57 – $319|
3. Chipotle Mexican Grill, Inc. (CMG): $210.21
Shares of this Mexican food restaurant were sold by six insiders:
|P/E: 40.69||Forward P/E: 32.39||Industry P/E: 16.17|
|P/S: 3.74||Price/Book: 8.55||EV/EBITDA: 18.43|
|Market Cap: $6.50B||Avg. Daily Volume: 699,262||52 Week Range: $81.06 – $215.38|
4. MSC Industrial Direct Co. Inc. (MSM): $56.94
Shares of this direct marketer and distributor of metalworking and maintenance were sold by nine insiders:
|P/E: 24.05||Forward P/E: 15.64||Industry P/E: 24.05|
|P/S: 2.11||Price/Book: 3.96||EV/EBITDA: 13.04|
|Market Cap: $3.57B||Avg. Daily Volume: 258,750||52 Week Range: $42.38 – $59.12|
5. Juniper Networks, Inc. (JNPR): $32.39
Shares of this networking & communication devices company were sold by four insiders:
|P/E: 38.61||Forward P/E: 21.17||Industry P/E: 38.6|
|P/S: 4.31||Price/Book: 2.62||EV/EBITDA: 16.59|
|Market Cap: $16.88B||Avg. Daily Volume: 6,531,730||52 Week Range: $22.25 – $32.84|