Welcome to edition thirty four of Insider Weekends. Insider buying more than tripled last week with insiders purchasing $36.95 million of their stock when compared to $10.15 million in the week prior. Selling dropped with insiders selling $340.66 million worth of stock when compared to $503.16 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 buying in that week. The adjusted ratio for last week declined significantly to 9.22. In other words, insiders sold more than 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the week prior when the ratio stood at 49.56. 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. JPMorgan Chase & Co. (JPM): $44.54
Director David C. Novak acquired 111,300 shares of this investment bank, paying $44.88 per share for a total amount of $5 million. Mr. Novak increased his stake by 103.85% to 170,871 shares with this purchase. 49,500 of these shares were acquired by Mr. Novak’s spouse.