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Insider Weekends – September 13, 2013

  • September 16, 2013

Welcome to edition 169 of Insider Weekends. Insider buying more than doubled with insiders purchasing $54.86 million of their stock last week compared to $25.89 million in the week prior. Selling also increased with insiders selling $2.85 billion of stock last week compared to $1.44 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 decreased to 52.02. In other words, insiders sold about 52 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 58.28. 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. Kinder Morgan, Inc. (KMI): $35.08

Chairman and CEO Richard D. Kinder acquired 500,000 shares of this oil & gas pipelines company, paying $35.74 per share for a total amount of $17.87 million. Mr. Kinder increased his stake by 0.22% to 230,759,786 shares with this purchase.

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