Welcome to edition thirty seven of Insider Weekends. Insider buying dropped last week with insiders purchasing $33.13 million of their stock when compared to $47.89 million in the week prior. Selling on the other hand increased with insiders selling $2.14 billion worth of stock when compared to $1.83 billion 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 increased to 64.53. In other words, insiders sold more than 64 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 38.24. 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. AOL, Inc. (AOL): $21.99
Shares of AOL were acquired by 2 insiders:
You can view the list of recent insider transactions for AOL here.
|P/E: N/A||Forward P/E: 26.82||Industry P/E: 25|
|P/S: 0.97||Price/Book: 1.03||EV/EBITDA: 2.32|
|Market Cap: $2.35B||Avg. Daily Volume: 1,043,900||52 Week Range: $19.61 – $29.45|
2. PennyMac Mortgage Investment Trust (PMT): $18.17
Shares of this REIT – Residential company were acquired by 4 insiders:
Even though it was not indicated in the filings, these purchases appear to be related to a recent common stock offering by the company where it sold 9.5 million shares at $18/share to raise $163.8 million after expenses. The company raised this capital to purchase two portfolios of residential mortgages that they may close this month.
You can view the list of recent insider transactions for PennyMac Mortgage here.
|P/E: 12.62||Forward P/E: N/A||Industry P/E: 18.24|
|P/S: 6.99||Price/Book: 0.94||EV/EBITDA: N/A|
|Market Cap: $305.84M||Avg. Daily Volume: 162,147||52 Week Range: $15.56 – $18.95|
3. Chevron Corp. (CVX): $98.72
Director John G. Stumpf acquired 10,000 shares of this oil & gas company, paying $96.43 per share for a total amount of $964,336. These shares were acquired indirectly by the Stumpf Family Trust.
You can view the list of recent insider transactions for Chevron here.
|P/E: 10.41||Forward P/E: 8.53||Industry P/E: 15.04|
|P/S: 0.99||Price/Book: 1.91||EV/EBITDA: 5.1|
|Market Cap: $198.67B||Avg. Daily Volume: 7,563,570||52 Week Range: $66.83 – $98.81|
4. Airgas Inc. (ARG): $64.08
Shares of this specialty gas company were acquired by 2 insiders:
You can view the list of recent insider transactions for Airgas here.
|P/E: 24.05||Forward P/E: 16.82||Industry P/E: 16.36|
|P/S: 1.31||Price/Book: 2.73||EV/EBITDA: 9.66|
|Market Cap: $5.39B||Avg. Daily Volume: 2,162,850||52 Week Range: $59.26 – $71.28|
5. Flowers Foods, Inc. (FLO): $25.94
Director Benjamin H. Griswold acquired 25,000 shares of this bakery products company, paying $25.29 per share for a total amount of $632,300. Mr. Griswold increased his stake by 26.77% to 118,371 shares with this purchase.
This is the second week in a row Flowers Foods is making our list. Mr. Griswold also acquired 25,000 shares last week as discussed in the previous Insider Weekends article.
You can view the list of recent insider transactions for FLO here.
|P/E: 17.41||Forward P/E: 15.26||Industry P/E: 16.92|
|P/S: 0.93||Price/Book: 3.01||EV/EBITDA: 8.59|
|Market Cap: $2.38B||Avg. Daily Volume: 583,814||52 Week Range: $22.97 – $27.58|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Molycorp, Inc. (MCP): $44.63
Shares of this rare earths company were sold by 5 insiders:
You can view the list of recent insider transactions for Molycorp here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 17.17|
|P/S: 254.98||Price/Book: 8.73||EV/EBITDA: -75.06|
|Market Cap: $3.67B||Avg. Daily Volume: 5,140,980||52 Week Range: $12.1 – $62.8|
2. Whole Foods Market, Inc. (WFMI): $60.03
Shares of this grocery stores company were sold by 8 insiders:
With the exception of Mr. Sokoloff and CEO Robb, all shares sold by others were as a result of exercising options immediately prior to the sale.
You can view the list of recent insider transactions for Whole Foods here.
|P/E: 37.17||Forward P/E: 28.86||Industry P/E: 31.26|
|P/S: 1.12||Price/Book: 4.17||EV/EBITDA: 13.49|
|Market Cap: $10.42B||Avg. Daily Volume: 1,920,250||52 Week Range: $33.3 – $60.94|
3. Perrigo Co. (PRGO): $75.7
Shares of this drug and nutritional products company were sold by 10 insiders:
Perrigo also made our list last week following a string of insider sales at the company.
You can view the list of recent insider transactions for Perrigo here.
|P/E: 25.66||Forward P/E: 17.09||Industry P/E: 14.77|
|P/S: 2.79||Price/Book: 5.38||EV/EBITDA: 14.76|
|Market Cap: $6.99B||Avg. Daily Volume: 746,681||52 Week Range: $48.43 – $76.87|
4. Avago Technologies Limited (AVGO): $33.85
President and CEO Hock E. Tan sold 964,100 shares of this semiconductor company for $34.02, generating $32,798,699 from the sale. 864,100 of these shares were sold as a result of exercising options immediately prior to the sale.
You can view the list of recent insider transactions for Avago Technologies here.
|P/E: 20.03||Forward P/E: 13.27||Industry P/E: 15.85|
|P/S: 3.88||Price/Book: 5.36||EV/EBITDA: 12.48|
|Market Cap: $8.18B||Avg. Daily Volume: 2,029,540||52 Week Range: $17.13 – $34.6|
5. OpenTable, Inc. (OPEN): $90.04
Shares of this online restaurant reservations company were sold by 5 insiders:
You can view the list of recent insider transactions for OpenTable here.
|P/E: 155.24||Forward P/E: 53.92||Industry P/E: 22.64|
|P/S: 21.57||Price/Book: 20.91||EV/EBITDA: 85.7|
|Market Cap: $2.07B||Avg. Daily Volume: 942,589||52 Week Range: $31.25 – $95.97|
Voluntary Disclosure: I have a short position in OpenTable.
You can view the full list of sales from this Insider Sales page.