Insider Weekends – August 30, 2013

Welcome to edition 167 of Insider Weekends. Insider buying increased with insiders purchasing $47.13 million of their stock last week compared to $39.95 million in the week prior. Selling also increased with insiders selling $917.32 million of stock last week compared to $742.11 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 19.46. In other words, insiders sold more than 19 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 18.57. 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. Independent Bank Group, Inc. (IBTX): $34.26

Shares of this regional bank were acquired by 6 insiders:

• Director G Stacy Smith acquired 21,891 shares, paying $34.18 per share for a total amount of $748,317. Ms. Smith increased her stake by 23.14% to 116,510 shares with this purchase.
• Director William E. Fair acquired 14,192 shares, paying $34.66 per share for a total amount of $491,942. 7,739 of these shares were acquired indirectly by Theodore Spahr Fair IRA.
• Director M Brian Aynesworth III acquired 1,422 shares, paying $35.00 per share for a total amount of $49,770. Mr. Aynesworth increased his stake by 0.36% to 391,418 shares with this purchase.
• President and COO Torry Berntsen acquired 1,000 shares, paying $35.07 per share for a total amount of $35,072. Mr. Berntsen increased his stake by 1.73% to 58,792 shares with this purchase.
• EVP and CFO Michelle S. Hickox acquired 1,000 shares, paying $34.02 per share for a total amount of $34,019. Ms. Hickox increased her stake by 10.53% to 10,500 shares with this purchase.
• Vice Chairman and CLO Brian E. Hobart acquired 300 shares, paying $34.50 per share for a total amount of $10,350. Mr. Hobart increased his stake by 0.14% to 211,311 shares with this purchase.

You can view the list of recent insider transactions for Independent Bank Group, Inc. here.

2. 3M Company (MMM): $113.58

Director W James Farrell acquired 6,625 shares of this conglomerate, paying $114.41 per share for a total amount of $757,940.

You can view the list of recent insider transactions for 3M Company here.

3. TASER International Inc. (TASR): $11.64

Director Hadi Partovi acquired 50,000 shares of Taser, paying $11.89 per share for a total amount of $594,500. Mr. Partovi increased his stake by 28.66% to 224,462 shares with this purchase.

You can view the list of recent insider transactions for TASER International Inc. here.

4. Lehigh Gas Partners LP (LGP): $26.8

Shares of this wholesale distributor of motor fuels were acquired by 3 insiders:

• Director Robert L. Wiss acquired 10,000 shares, paying $27.14 per share for a total amount of $271,404. Mr. Wiss increased his stake by 19.93% to 60,174 shares with this purchase.
• Director John F. Malloy acquired 9,724 shares, paying $27.09 per share for a total amount of $263,422. These shares were acquired indirectly by an IRA Account by Mr. Malloy’s spouse.
• GC, Secy & CCO Frank M. Macerato acquired 500 shares, paying $26.85 per share for a total amount of $13,425. Mr. Macerato increased his stake by 66.67% to 1,250 shares with this purchase.

You can view the list of recent insider transactions for Lehigh Gas Partners LP here.

5. Integrated Device Technology, Inc. (IDTI): $8.71

INTERIM PRESIDENT & CEO Jeffrey Stephen McCreary acquired 60,000 shares of this semiconductor company, paying $8.92 per share for a total amount of $534,988. Mr. McCreary increased his stake by 69.90% to 145,834 shares with this purchase.

You can view the list of recent insider transactions for Integrated Device Technology, Inc. here.

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

Notable Insider Sales:

1. Goodrich Petroleum Corp. (GDP): $21.45

Director Josiah T. Austin sold 1,000,000 shares of this independent oil & natural gas company for $21.61, generating $21.6 million from the sale. These shares were sold indirectly by El Coronado Holdings, LLC.

You can view the list of recent insider transactions for Goodrich Petroleum Corp. here.

2. Facebook, Inc. (FB): $41.294

Shares of Facebook were sold by 4 insiders:

• Chief Financial Officer David A. Ebersman sold 223,400 shares for $40.05, generating $8.95 million from the sale.
• Chief Operating Officer Sheryl Sandberg sold 176,452 shares for $38.52, generating $6.79 million from the sale.
• Chief Technology Officer Michael Todd Schroepfer sold 90,000 shares for $41.39, generating $3.73 million from the sale.
• VP, Gen. Counsel & Secretary Colin Stretch sold 24,007 shares for $39.63, generating $951,465 from the sale.

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

3. State Street Corporation (STT): $66.72

Shares of this financial services firm were sold by 3 insiders:

• Executive Vice President Michael F. Rogers sold 250,000 shares for $67.93, generating $16.98 million from the sale.
• Executive Vice President John L. Klinck Jr. sold 18,474 shares for $69.38, generating $1.28 million from the sale.
• Executive Vice President Christopher Perretta sold 10,606 shares for $66.66, generating $706,996 from the sale.

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

4. IntercontinentalExchange, Inc. (ICE): $179.75

Chief Executive Officer Jeffrey C. Sprecher sold 44,029 shares of this financial services and clearing company for $184.96, generating $8.14 million from the sale. 40,000 of these shares were sold indirectly by Continental Power Exchange, Inc and 4,029 shares were sold indirectly by Mr. Sprecher’s spouse. 4,612 of 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 IntercontinentalExchange, Inc. here.

5. Westinghouse Air Brake Technologies Corporation (WAB): $58.52

Shares of this railroads components provider were sold by 3 insiders:

• Director William E. Kassling sold 86,845 shares for $59.45, generating $5.16 million from the sale. These shares were sold indirectly by Davideco, Inc.
• Director Steeg Nickolas Vande sold 16,000 shares for $59.46, generating $951,315 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• Director Lee B. Foster II sold 8,000 shares for $58.47, generating $467,732 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 Westinghouse Air Brake Technologies Corporation here.

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