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Insider Weekends – April 19, 2013

  • April 20, 2013

Welcome to edition 149 of Insider Weekends. Insider buying increased with insiders purchasing $35.53 million of their stock last week compared to $27.2 million in the week prior. Selling also increased with insiders selling $838.5 million of stock last week compared to $499.4 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 23.6. In other words, insiders sold more than 23 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 18.36. 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.

Insider Sell Buy Ratio April 19, 2013
Insider Sell Buy Ratio April 19, 2013

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): $49.1

Shares of this farm & construction machinery company were acquired by 2 insiders:

  • Director Mallika Srinivasan acquired 324,368 shares, paying $48.22 per share for a total amount of $15.6 million. These shares were purchased indirectly by TAFE Motors and Tractors Limited.
  • Senior VP, Chief Supply Chain Officer Hans-Bernd Veltmaat acquired 3,920 shares, paying $49.00 per share for a total amount of $192,080. Mr. Veltmaat increased his stake by 18.32% to 25,313 shares with this purchase.

It is interesting to see another insider join Ms. Srinivasan in purchasing AGCO’s stock. We have been reporting on Ms. Srinivasan’s indirect purchases for several weeks. The odd thing about the timing of this purchase is that it comes less than 2 weeks before the company is due to report first quarter results on April 30. This is typically a “quiet period” for most companies.

You can view the list of recent insider transactions for AGCO Corporation here.

P/E: 9.26 Forward P/E: 8.47 Industry P/E: 29.3
P/S: 0.47 Price/Book: 1.36 EV/EBITDA: 5.76
Market Cap: $4.76B Avg. Daily Volume: 1,201,540 52 Week Range: $38.09 – $55.15

2. Walgreen Co. (WAG): $49.35

Director Stefano Pessina acquired 83,299 shares of this drug store chain, paying $48.62 per share for a total amount of $4.05 million. These shares were purchased indirectly by a corporation controlled by Mr. Pessina.

You can view the list of recent insider transactions for Walgreen Co. here.

P/E: 21.94 Forward P/E: 13.37 Industry P/E: N/A
P/S: 0.65 Price/Book: 2.43 EV/EBITDA: 10.88
Market Cap: $46.76B Avg. Daily Volume: 6,453,050 52 Week Range: $28.53 – $49.63

3. Calamos Asset Management Inc. (CLMS): $11.15

Chairman, CEO, Global Co-CIO John P. Calamos Sr. acquired 72,028 shares of this asset management company, paying $10.99 per share for a total amount of $791,329. Mr. Calamos increased his stake by 6.56% to 1,170,042 shares with this purchase.

You can view the list of recent insider transactions for Calamos Asset Management Inc. here.

P/E: 12.67 Forward P/E: 16.4 Industry P/E: N/A
P/S: 0.69 Price/Book: 1.14 EV/EBITDA: -1.59
Market Cap: $228.27M Avg. Daily Volume: 224,537 52 Week Range: $9.24 – $13.29

4. AeroVironment, Inc. (AVAV): $18.05

Director Arnold L. Fishman acquired 43,000 shares of this unmanned aircraft company, paying $18.10 per share for a total amount of $778,352. These shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for AeroVironment, Inc. here.

P/E: 14.01 Forward P/E: 36.1 Industry P/E: 77.17
P/S: 1.34 Price/Book: 1.27 EV/EBITDA: 5.79
Market Cap: $399.66M Avg. Daily Volume: 318,011 52 Week Range: $16.98 – $27.82

5. FuelCell Energy Inc. (FCEL): $0.99

Shares of this manufacturer of fuel cells were acquired by 4 insiders:

  • Director John A. Rolls acquired 200,000 shares, paying $0.92 per share for a total amount of $183,480. Mr. Rolls increased his stake by 29.94% to 868,000 shares with this purchase.
  • Director James D. Gerson acquired 100,000 shares, paying $0.90 per share for a total amount of $90,000. Mr. Gerson increased his stake by 9.75% to 1,125,989 shares with this purchase.
  • President and CEO Arthur A. Bottone Jr. acquired 10,000 shares, paying $0.92 per share for a total amount of $9,184. Mr. Bottone increased his stake by 1.08% to 936,168 shares with this purchase.
  • Senior VP, CFO, Secretary & Treasurer Michael S. Bishop acquired 1,500 shares, paying $0.90 per share for a total amount of $1,348. Mr. Bishop increased his stake by 0.34% to 448,231 shares with this purchase.

You can view the list of recent insider transactions for FuelCell Energy Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: 17.29
P/S: 1.36 Price/Book: 27.28 EV/EBITDA: -3.36
Market Cap: $187.58M Avg. Daily Volume: 906,942 52 Week Range: $0.83 – $1.39

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. L Brands, Inc. (LTD): $48.42

Chairman and CEO Leslie H. Wexner sold 1,500,000 shares of this apparel chain for $49.32, generating $73.98 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for L Brands, Inc. here.

P/E: 19.06 Forward P/E: 13.76 Industry P/E: 38.16
P/S: 1.32 Price/Book: N/A EV/EBITDA: 8.72
Market Cap: $13.95B Avg. Daily Volume: 3,274,830 52 Week Range: $40.32 – $52.5

2. CBL & Associates Properties Inc. (CBL): $23.52

Chairman of the Board Charles B. Lebovitz sold 227,000 shares of this retail REIT for $20.82, generating $4.7 million from the sale.

You can view the list of recent insider transactions for CBL & Associates Properties Inc. here.

P/E: 43.31 Forward P/E: 10.36 Industry P/E: 4.25
P/S: 3.58 Price/Book: 2.81 EV/EBITDA: 12.62
Market Cap: $3.80B Avg. Daily Volume: 1,446,000 52 Week Range: $16.65 – $24.41

3. Boston Beer Co. Inc. (SAM): $166.11

Chairman James C. Koch sold 21,000 shares of this beverage company for $158.50, generating $3.3 million from the sale.

You can view the list of recent insider transactions for Boston Beer Co. Inc. here.

P/E: 37.86 Forward P/E: 29.3 Industry P/E: N/A
P/S: 3.49 Price/Book: 8.26 EV/EBITDA: 16.99
Market Cap: $2.11B Avg. Daily Volume: 86,747 52 Week Range: $97.47 – $166.79

4. Alexion Pharmaceuticals, Inc. (ALXN): $92.6

CEO Leonard Bell sold 35,000 shares of this biotech company for $95.04, generating $3.3 million from the sale.

You can view the list of recent insider transactions for Alexion Pharmaceuticals, Inc. here.

P/E: 72.34 Forward P/E: 28.06 Industry P/E: 18.62
P/S: 15.84 Price/Book: 9.09 EV/EBITDA: 43.05
Market Cap: $18.08B Avg. Daily Volume: 1,956,830 52 Week Range: $81.28 – $119.54

5. Athenahealth, Inc. (ATHN): $92.89

Shares of this provider of business services to medical groups were sold by 2 insiders:

  • President, Enterprise Services Stephen N. Kahane sold 26,318 shares for $94.85, generating $2.5 million from the sale. 7,060 of these shares were sold as a result of exercising options immediately prior to the sale.
  • SVP, Chief Marketing Officer Robert Cosinuke sold 6,000 shares for $93.80, generating $562,800 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for Athenahealth, Inc. here.

P/E: 185.78 Forward P/E: 58.42 Industry P/E: 23.02
P/S: 8.08 Price/Book: 10.93 EV/EBITDA: 63.58
Market Cap: $3.37B Avg. Daily Volume: 341,863 52 Week Range: $56.33 – $99.79

You can view the full list of sales from this Insider Sales page.