Welcome to edition fifty six of Insider Weekends. Insider buying dropped sharply with insiders purchasing $10.64 million of their stock last week when compared to $69.72 million in the week prior. Selling on the other hand increased with insiders selling $758.59 million worth of stock compared to $550.9 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 purchases that week. The adjusted ratio for last week went up to 71.29. In other words, insiders sold more than 71 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 7.9. 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. Navistar International Corp. (NAV): $58.35
Shares of this truck and diesel engine manufacturer were acquired by 3 insiders:
Insiders of Navistar have been very active over the last two weeks with four directors picking up shares. The largest purchases have been by Mr. Clariond who picked up 71,000 shares for a total of $3.83 million. Following his previous purchase on July 22, I wrote the following in a daily update to subscribers,
“Mr. Clariond has been a director of Navistar since 2002. This is his first purchase since last June when he picked up 35,500 shares at an average price of $56.45. The stock has tumbled recently along with the rest of the market. The company expects to post earnings of between $5.50 to $6 per share for full fiscal 2011, which ends in October. Even if the company meets the low end of its guidance, the stock appears to be cheap. It would be nice to see confirmation through additional insider purchases as all other insider transactions over the last six months have been direct or options related sales as you can see from this page.”
Voluntary Disclosure: I have a long position in Navistar.
|P/E: 19.34||Forward P/E: 7.94||Industry P/E: 17.71|
|P/S: 0.32||Price/Book: N/A||EV/EBITDA: 10.22|
|Market Cap: $4.25B||Avg. Daily Volume: 1,351,800||52 Week Range: $40.58 – $71.49|
2. Nanosphere, Inc. (NSPH): $1.84
Shares of this medical testing and diagnostics company were acquired by 2 insiders:
These insider purchases follow a steep drop in the stock price last Tuesday on heavy volume after the FDA requested additional data about its Plavix Metabolism diagnostic test. Insider buying by multiple insiders following a sell-off has often resulted in a short-term upward move in the stock. However I would advise caution with Nanosphere as the company has already rebounded off its 52 week low set last Thursday and continues to lose money. The company had $30 million in cash on its balance sheet as of March 2011 and raised an additional $32 million in a secondary offering priced at $2.20 in May.
You can view the list of recent insider transactions for Nanosphere, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 17.1|
|P/S: 27.31||Price/Book: 1.37||EV/EBITDA: -0.6|
|Market Cap: $51.07M||Avg. Daily Volume: 498,084||52 Week Range: $2.1 – $5.95|
3. Urstadt Biddle Properties Inc. (UBP): $17.12
President and COO Willing L. Biddle acquired 19,500 shares of this commercial REIT, paying $17.05 per share for a total amount of $332,475. These shares were purchased indirectly by a trust.
You can view the list of recent insider transactions for Urstadt Biddle Properties Inc. here.
|P/E: 24.96||Forward P/E: N/A||Industry P/E: N/A|
|P/S: 5.19||Price/Book: 1.92||EV/EBITDA: 11.16|
|Market Cap: $476.28M||Avg. Daily Volume: 7,763||52 Week Range: $13.89 – $18.12|
4. Rentrak Corporation (RENT): $18.93
Shares of this digital media measurement and research company were acquired by 2 insiders:
This Portland, Oregon based company has been transitioning its business model from tracking the sales of DVDs to tracking viewership of Video On Demand products and Box Office data. While its new division is growing rapidly (30% year-over-year growth in Q4), the old “home entertainment” tracking business still represented 65% of overall revenue of $97.1 million in fiscal Q4 ended March 2011.
The company posted disappointing earnings over the last two quarters and the numbers look terrible for this company. On the positive side, the company managed to generate positive free cash flow last fiscal year despite a net loss and has $26.3 million in net cash and investments on its balance sheet to help it navigate its way around this transition phase. The company also announced a $5 million share buyback when it announced full year fiscal 2011 results earlier this month.
You can view the list of recent insider transactions for Rentrak Corporation here.
|P/E: N/A||Forward P/E: 24.58||Industry P/E: 16.6|
|P/S: 2.05||Price/Book: 3.54||EV/EBITDA: 420.07|
|Market Cap: $212.81M||Avg. Daily Volume: 56,558||52 Week Range: $19.53 – $31.04|
5. EnPro Industries, Inc. (NPO): $48.83
President and CEO Stephen E. Macadam acquired 2,250 shares of this industrial products manufacturer, paying $44.73 per share for a total amount of $100,644. Mr. Macadam increased his stake by 2.75% to 84,215 shares with this purchase.
It is not often that you come across an insider purchasing the stock of a company that is close to its 52 week high and also happens to be reasonably valued. With a forward P/E of 10.07 and selling at a little over one time sales, EnPro is worth exploring further.
You can view the list of recent insider transactions for EnPro Industries, Inc. here.
|P/E: 14.27||Forward P/E: 10.07||Industry P/E: 15.75|
|P/S: 1.1||Price/Book: 1.95||EV/EBITDA: 10.65|
|Market Cap: $1.01B||Avg. Daily Volume: 228,214||52 Week Range: $26.64 – $49.14|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Guess? Inc. (GES): $42.39
Shares of this apparel and accessories retail chain were sold by 2 insiders:
You can view the list of recent insider transactions for Guess? Inc. here.
|P/E: 13.99||Forward P/E: 10.73||Industry P/E: 15.78|
|P/S: 1.53||Price/Book: 3.47||EV/EBITDA: 7.27|
|Market Cap: $3.92B||Avg. Daily Volume: 1,731,320||52 Week Range: $31.17 – $51.53|
2. Salesforce.com (CRM): $149.39
Shares of this application software company were sold by 7 insiders:
You can view the list of recent insider transactions for Salesforce.com here.
Voluntary Disclosure: I have a short position in Salesforce.com through put options.
|P/E: 436.81||Forward P/E: 79.89||Industry P/E: 26.99|
|P/S: 11.18||Price/Book: 15.89||EV/EBITDA: 142.54|
|Market Cap: $20.00B||Avg. Daily Volume: 2,391,870||52 Week Range: $86.36 – $153.99|
3. IntercontinentalExchange, Inc. (ICE): $126.98
Shares of this exchange for commodities and derivative products were sold by 3 insiders:
You can view the list of recent insider transactions for IntercontinentalExchange, Inc. here.
|P/E: 22.16||Forward P/E: 16.93||Industry P/E: 13.75|
|P/S: 7.62||Price/Book: 3.12||EV/EBITDA: 11.28|
|Market Cap: $9.34B||Avg. Daily Volume: 733,298||52 Week Range: $92.18 – $135.38|
4. Gulfmark Offshore, Inc. (GLF): $44.95
Shares of this offshore drilling services company were sold by 2 insiders:
You can view the list of recent insider transactions for Gulfmark Offshore, Inc. here.
|P/E: N/A||Forward P/E: 12.25||Industry P/E: 19.7|
|P/S: 3.29||Price/Book: 1.21||EV/EBITDA: 11.92|
|Market Cap: $1.19B||Avg. Daily Volume: 183,208||52 Week Range: $23.83 – $47.31|
5. Thor Industries Inc. (THO): $28.95
Senior Group President Richard E. Riegel sold 200,000 shares of this RV manufacturer for $28.37, generating $5.7 million from the sale. These shares were sold indirectly by Mr Riegel’s wife.
You can view the list of recent insider transactions for Thor Industries Inc. here.
|P/E: 14.32||Forward P/E: 11.26||Industry P/E: 21.43|
|P/S: 0.61||Price/Book: 2||EV/EBITDA: 9.03|
|Market Cap: $1.62B||Avg. Daily Volume: 399,492||52 Week Range: $22.5 – $39.12|
You can view the full list of sales from this Insider Sales page.