Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Insider Weekends – April 1, 2011

  • April 2, 2011

Welcome to edition forty three of Insider Weekends. Insider buying dropped sharply for a second week in a row with insiders purchasing $21.65 million of their stock last week when compared to $61.38 million in the week prior. Selling on the other hand picked up steam with insiders selling $742.56 million worth of stock when compared to $455.94 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 purchases that week. The adjusted ratio for last week increased to 34.3. In other words, insiders sold more than 34 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 7.43. 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. Kinder Morgan, Inc. (KMI): $29.5

Chairman & CEO Richard D. Kinder acquired 100,000 shares of this oil & gas pipelines company, paying $29.80 per share for a total amount of $2.98 million.

Only plus or premium subscribers can access this post. Subscribe today.