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Welcome to edition 110 of Insider Weekends. Insider buying increased significantly with insiders purchasing $133 million of their stock last week compared to $37.6 million in the week prior. Selling also increased with insiders selling $645.9 million worth of stock last week compared to $435.1 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 dropped down to 4.9. In other words, insiders sold almost 5 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 11.6. 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, 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 Corporation (NAV): $23.44
We normally do not feature purchases by 10% owners but felt that this purchase by activist investor Carl Icahn and his former associate Mark Rachesky was worth mentioning. Shares of this truck and diesel engine manufacturer were acquired by two insiders: