Welcome to edition seventy three of Insider Weekends. Insider buying increased with insiders purchasing $22.2 million of their stock last week compared to $3.9 million in the week prior. Selling also increased with insiders selling $987.1 million worth of stock compared to $626.7 million in the week prior. A fourth of these sales were on account of Bill Gates selling Microsoft (MSFT) stock, probably to fund his philanthropic efforts.
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 dropped down to 44.4. In other words, insiders sold more than 44 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the week prior when the ratio stood at 162.5. 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. Masimo Corporation (MASI): $20.24
CEO and Chairman of the Board Joe E. Kiani acquired 64,596 shares of this medical technology company, paying $20.24 per share for a total amount of $1.3 million. These shares were purchased indirectly through trusts.
You can view the list of recent insider transactions for Masimo Corporation here.
|P/E: 18.4||Forward P/E: 14.99||Industry P/E: 20.71|
|P/S: 2.82||Price/Book: 4.37||EV/EBITDA: 9.54|
|Market Cap: $1.21B||Avg. Daily Volume: 651,238||52 Week Range: $18.08 – $35.15|
2. Itron, Inc. (ITRI): $37.22
Shares of this water and energy meters company were acquired by 2 insiders:
You can view the list of recent insider transactions for Itron, Inc. here.
|P/E: 13.15||Forward P/E: 9.54||Industry P/E: 15.93|
|P/S: 0.64||Price/Book: 0.94||EV/EBITDA: 5.78|
|Market Cap: $1.51B||Avg. Daily Volume: 597,911||52 Week Range: $26.9 – $64.39|
3. Popular Inc. (BPOP): $1.9
Shares of this Puerto Rico based regional bank were acquired by 2 insiders:
You can view the list of recent insider transactions for Popular Inc. here.
|P/E: N/A||Forward P/E: 5.94||Industry P/E: 8.02|
|P/S: 3.32||Price/Book: 0.48||EV/EBITDA: N/A|
|Market Cap: $1.95B||Avg. Daily Volume: 11,809,400||52 Week Range: $1.2 – $3.59|
4. Comtech Telecommunications Corp. (CMTL): $33.41
Shares of this communication equipment company were acquired by 5 insiders:
We are finally seeing an uptick in insider purchasing and this cluster purchase was very interesting. We reported on a trio of purchases in June where insiders picked up shares for around $24 as you can see from this page.
Back then we wrote the following, “These are by far the most interesting insider purchases of the day. Not only are we seeing multiple insider purchases, the CFO has purchased shares several times since last October. The only insider sale was an options related sale by a Senior Vice President in January as you can see from this page. The company has $389 million in net cash on its balance sheet after deducting long-term debt and trades at an extremely cheap 2 times free cash flow.
The main concern is a decline in both revenue and net income over the last three quarters. The company sports a dividend yield of 4.1%.”
Voluntary Disclosure: I picked up a position in Comtech for my trading portfolio following these purchases.
You can view the list of recent insider transactions for Comtech Telecommunications Corp. here.
|P/E: 15.06||Forward P/E: 24.57||Industry P/E: 12.45|
|P/S: 1.29||Price/Book: 1.3||EV/EBITDA: 3.67|
|Market Cap: $783.90M||Avg. Daily Volume: 459,956||52 Week Range: $23.51 – $34.08|
5. Freescale Semiconductor Holdings I, Ltd. (FSL): $13.7
Chief Executive Officer Richard M. Beyer acquired 40,000 shares of this semiconductor company, paying $12.16 per share for a total amount of $486,348. Mr. Beyer increased his stake by 9.82% to 447,139 shares with this purchase.
Freescale Semiconductor went public earlier this year at $18/share and after briefly touching the $20 level in July, has been declining steadily. This is the first insider purchase at the company. The company has been posting losses and free cash flow has been lumpy, swinging from positive to negative from quarter to quarter.
You can view the list of recent insider transactions for Freescale Semiconductor Holdings I, Ltd. here.
|P/E: N/A||Forward P/E: 14.73||Industry P/E: 12.65|
|P/S: 0.72||Price/Book: N/A||EV/EBITDA: 8.09|
|Market Cap: $3.36B||Avg. Daily Volume: 1,106,480||52 Week Range: $9.43 – $20.97|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Apollo Group Inc. (APOL): $48.16
Shares of this for-profit education company were sold by 5 insiders:
You can view the list of recent insider transactions for Apollo Group Inc. here.
|P/E: 11.93||Forward P/E: 13.27||Industry P/E: 14.33|
|P/S: 1.37||Price/Book: 5.23||EV/EBITDA: 4.13|
|Market Cap: $6.29B||Avg. Daily Volume: 2,015,880||52 Week Range: $33.75 – $54.23|
2. Mitek Systems Inc. (MITK): $10.34
Shares of this application software company were sold by 5 insiders:
You can view the list of recent insider transactions for Mitek Systems Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 26.45|
|P/S: N/A||Price/Book: N/A||EV/EBITDA: N/A|
|Market Cap: $N/A||Avg. Daily Volume: N/A||52 Week Range: $2.30 – $13.11|
3. Jabil Circuit Inc. (JBL): $21.32
Shares of this electronic manufacturing services provider were sold by 5 insiders:
You can view the list of recent insider transactions for Jabil Circuit Inc. here.
|P/E: 12.32||Forward P/E: 7.28||Industry P/E: 12.52|
|P/S: 0.27||Price/Book: 2.4||EV/EBITDA: 5.12|
|Market Cap: $4.54B||Avg. Daily Volume: 5,081,670||52 Week Range: $13.67 – $23.09|
4. Select Comfort Corporation (SCSS): $20.53
Shares of this mattress manufacturer were sold by 6 insiders:
You can view the list of recent insider transactions for Select Comfort Corporation here.
|P/E: 22.03||Forward P/E: 16.42||Industry P/E: 9.57|
|P/S: 1.67||Price/Book: 10.64||EV/EBITDA: 11.08|
|Market Cap: $1.15B||Avg. Daily Volume: 1,213,380||52 Week Range: $7.71 – $22.19|
5. Constellation Brands Inc. (STZ): $20.57
Shares of this alcoholic beverages company were sold by 2 insiders:
You can view the list of recent insider transactions for Constellation Brands Inc. here.
|P/E: 6.69||Forward P/E: 9.39||Industry P/E: 15.62|
|P/S: 1.38||Price/Book: 1.54||EV/EBITDA: 10.9|
|Market Cap: $4.16B||Avg. Daily Volume: 2,486,880||52 Week Range: $16.42 – $23.19|
You can view the full list of sales from this Insider Sales page.