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Welcome to edition 154 of Insider Weekends. Insider buying increased with insiders purchasing $141 million of their stock last week compared to $123.67 million in the week prior. Selling decreased with insiders selling $1.8 billion of stock last week compared to $2.79 billion in the week prior. A majority of the insider buying this week was driven by Elon Musk’s $100 million participation in Tesla Motor’s (TSLA) secondary offering.
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 12.79. In other words, insiders sold more almost 13 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:
1. Carnival Corporation (CCL): $33.1
Director Randall J. Weisenburger acquired 40,000 shares of this cruise ship operator, paying $32.95 per share for a total amount of $1.3 million. Mr. Weisenburger increased his stake by 103.96% to 78,477 shares with this purchase.