×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Insider Weekends – June 7, 2013

  • June 9, 2013

Welcome to edition 155 of Insider Weekends. Insider buying increased with insiders purchasing $152.67 million of their stock last week compared to $141 million in the week prior. Selling decreased with insiders selling $1.31 billion of stock last week compared to $1.8 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 dropped to 8.6. In other words, insiders sold more almost 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 22.56. 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:

Some of the insider purchases that did not make the top 5 list but are worth exploring include a cluster purchase by 5 insiders of Calamos Asset Management (CLMS), a cluster purchase by 4 insiders of Iron Mountain (IRM),additional purchases of Cabela’s (CAB) by its director Reuben Mark and a purchase of ACCO Brands (ACCO) by its CFO. The Iron Mountain purchases follow a nearly 20% drop in the stock last week after the company’s application to convert to a REIT has come under additional IRS scrutiny.

Only plus or premium subscribers can access this post. Subscribe today.