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Insider Weekends – January 10, 2014

  • January 11, 2014

Welcome to edition 186 of Insider Weekends. Insider buying was dismal last week with insiders purchasing $3.38 million of their stock compared to $9.42 million in the week prior. This is not entirely unexpected as purchases do dry up during the first few weeks of each quarter ahead of earnings. Selling increased with insiders selling $702.52 million of stock last week compared to $425.98 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 207.91. In other words, insiders sold almost 208 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at a record 45.23. 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. American Realty Capital Properties, Inc. (ARCPP): $20.39

Shares of this commercial real estate company were acquired by 7 insiders:

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