Welcome to edition twenty four of Insider Weekends. Insider buying decreased significantly last week with insiders purchasing $25.73 million of their stock when compared to $45.16 million in the week prior. Selling also decreased with insiders selling $2.37 billion worth of stock when compared to $2.71 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 buying in that week. The adjusted ratio for last week went up to 92. In other words, insiders sold 92 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 60. The ratio this week was impacted by insider buying and selling related to secondary offerings. The Sell/Buy ratio drops to 82 after removing these transactions. 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. BlackRock, Inc. (BLK): $168.98
Shares of this asset management company were purchased by two insiders: