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Welcome to edition eighty nine of Insider Weekends. Insider buying increased with insiders purchasing $67.4 million of their stock last week compared to $63.5 million in the week prior. Selling increased sharply with insiders selling $1.4 billion worth of stock last week compared to $939.76 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 20.8. In other words, insiders sold nearly 21 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 14.81.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. GeoEye, Inc. (GEOY): $21.7
10% Owner Stephen Feinberg acquired 600,000 shares of this satellite imaging products company, paying $20.27 per share for a total amount of $12.2 million. Mr. Feinberg increased his stake by 18.1% to 3,923,079 shares with this purchase. These shares were acquired indirectly through Cerberus Capital Management.