Welcome to edition forty six of Insider Weekends. Insider buying dropped with insiders purchasing $23.45 million of their stock last week when compared to $151.3 million in the week prior, which included a $125 million purchase related to a secondary offering by Jefferies. Selling increased with insiders selling $843.34 million worth of stock when compared to $822.65 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 jumped up to 35.96. In other words, insiders sold more nearly 36 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 5.44. 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): $44.68
Director Lee R. Raymond acquired 2,000 shares of this investment bank, paying $1,106.25 per share for a total amount of $2.21 million. As indicated in the filing these were fixed-to-floating rate non-cumulative preferred shares.