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Welcome to edition 130 of Insider Weekends. We were not able to publish this post over the weekend as we usually do but I decided to publish it today for the sake of continuity and because a couple of people asked about it. Insider buying dropped nearly in half with insiders purchasing $31.13 million of their stock last week compared to $60.9 million in the week prior. Selling also decreased with insiders selling $1.94 billion of stock last week compared to $2.04 billion 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 jumped to 62.4. In other words, insiders sold more than 62 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 33.54. 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. AGCO Corporation (AGCO): $46.15
Director Mallika Srinivasan acquired 251,383 shares of this farm & construction machinery company, paying $45.47 per share for a total amount of $11.43 million. These shares were purchased indirectly by Tractors and Farm Equipment Limited.