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Insider Weekends – July 15, 2011

  • July 16, 2011

Welcome to edition fifty eight of Insider Weekends. Insider buying dropped with insiders purchasing $28.71 million of their stock last week when compared to $47.55 million in the week prior. Selling also decreased with insiders selling $400.06 million worth of stock compared to $660.99 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 remained flat at 13.9. In other words, insiders sold nearly 14 times as much stock as they purchased. 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. Blyth, Inc. (BTH): $62

Chairman of the Board and CEO Robert B. Goergen acquired 400,000 shares of this home fragrance and home décor company, paying $52.29 per share for a total amount of $20.92 million. Mr. Goergen increased his stake by 19.51% to 2,450,475 shares with this purchase.

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