Welcome to edition thirty five of Insider Weekends. Insider buying dropped sharply last week with insiders purchasing $17.19 million of their stock when compared to $36.95 million in the week prior. Selling more than tripled with insiders selling $1.07 billion worth of stock when compared to $340.66 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 increased significantly to 62.5. In other words, insiders sold more than 62 times as much stock as they purchased. This is the highest the ratio has been since the first week of December. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 9.22. 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. RLI Corp. (RLI): $55.37
Shares of this property & casualty insurance company were acquired by 3 insiders:
RLI made our list for the second week in a row.
|P/E: 9.23||Forward P/E: 13.95||Industry P/E: 12.06|
|P/S: 1.99||Price/Book: 1.47||EV/EBITDA: 6.76|
|Market Cap: $1.16B||Avg. Daily Volume: 169,769||52 Week Range: $49.69 – $61.97|
2. Cirrus Logic Inc. (CRUS): $24.81
Director Robert Henry Smith acquired 142,000 shares of this specialized semiconductor company, paying $21.06 per share for a total amount of $2,990,378.
While not exactly cheap, this high growth company has operating margins of 22% and Return on Equity (ROE) of 38%. More than half of the company’s revenue comes from Apple as its products are used in iPads and iPhones. Revenue grew 47% in the most recent quarter and the company is planning on expanding its workforce by more than 25% by adding 150 employees. Cirrus was picked as one of the best companies to work for in Texas in 2009 and 2010, so it looks like those new employees might find a happy home.
The stock is already up 10.27% since this filing came out on Wednesday.
|P/E: 18.65||Forward P/E: 16.22||Industry P/E: 18.24|
|P/S: 4.69||Price/Book: 5.35||EV/EBITDA: 17.04|
|Market Cap: $1.68B||Avg. Daily Volume: 3,627,860||52 Week Range: $6.23 – $25.05|
3. Sharps Compliance Corp. (SMED): $4.5
Shares of this Texas based medical waste disposal company were acquired by 6 insiders:
|P/E: N/A||Forward P/E: 450||Industry P/E: 18.61|
|P/S: 3.94||Price/Book: 2.59||EV/EBITDA: -11.28|
|Market Cap: $67.14M||Avg. Daily Volume: 96,108||52 Week Range: $3.65 – $8.09|
4. General Electric Co. (GE): $20.56
Director Alan G. Lafley acquired 25,000 shares of GE, paying $20.17 per share for a total amount of $504,250. Mr. Lafley increased his stake by 81.39% to 55,716 shares with this purchase.
|P/E: 19.43||Forward P/E: 12.69||Industry P/E: 17.22|
|P/S: 1.47||Price/Book: 1.86||EV/EBITDA: 21.39|
|Market Cap: $218.68B||Avg. Daily Volume: 60,018,600||52 Week Range: $13.75 – $20.96|
5. Caterpillar Inc. (CAT): $99.59
Shares of this construction equipment company were acquired by 2 insiders:
|P/E: 24||Forward P/E: 12.69||Industry P/E: 13.82|
|P/S: 1.48||Price/Book: 5.82||EV/EBITDA: 14.32|
|Market Cap: $63.44B||Avg. Daily Volume: 5,851,010||52 Week Range: $50.5 – $99.72|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Microsoft Corporation (MSFT): $27.77
Shares of Microsoft were sold by 3 insiders:
|P/E: 11.85||Forward P/E: 10.06||Industry P/E: 29.85|
|P/S: 3.48||Price/Book: 4.79||EV/EBITDA: 6.91|
|Market Cap: $233.33B||Avg. Daily Volume: 58,420,800||52 Week Range: $22.73 – $31.58|
2. GameStop Corp. (GME): $20.05
Director Leonard Riggio sold 3,008,497 shares of this video game retailer for $19.85, generating $59.73 million from the sale.
|P/E: 8.19||Forward P/E: 6.89||Industry P/E: 8.47|
|P/S: 0.32||Price/Book: 1.07||EV/EBITDA: 3.79|
|Market Cap: $3.04B||Avg. Daily Volume: 3,863,340||52 Week Range: $17.12 – $25.75|
3. Perrigo Co. (PRGO): $71.67
Shares of this drug and nutritional products manufacturer were sold by 3 insiders:
|P/E: 27.21||Forward P/E: 16.25||Industry P/E: 15.47|
|P/S: 2.77||Price/Book: 5.49||EV/EBITDA: 15.65|
|Market Cap: $6.61B||Avg. Daily Volume: 827,180||52 Week Range: $44.7 – $74.46|
4. Cypress Semiconductor Corporation (CY): $23.33
Shares of this semiconductor company were sold by 5 insiders:
|P/E: 59.67||Forward P/E: 16.78||Industry P/E: 16.63|
|P/S: 4.39||Price/Book: 5.51||EV/EBITDA: 21.94|
|Market Cap: $3.97B||Avg. Daily Volume: 3,453,380||52 Week Range: $9.73 – $23.57|
5. Under Armour, Inc. (UA): $63.7
The little company that has managed to fill Nike’s big shoes was on sale last week; by its insiders. Shares of this sports apparel company were sold by 4 insiders:
|P/E: 47.54||Forward P/E: 31.23||Industry P/E: 15.93|
|P/S: 2.89||Price/Book: 6.19||EV/EBITDA: 19.81|
|Market Cap: $3.25B||Avg. Daily Volume: 744,752||52 Week Range: $23.72 – $64.95|
You can view the full list of sales from this Insider Sales page.