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Insider Weekends – February 7, 2014

  • February 8, 2014

Welcome to edition 190 of Insider Weekends. Insider buying increased last week with insiders purchasing $151.76 million of their stock compared to $64.80 million in the week prior. Selling also increased with insiders selling $1.37 billion of stock last week compared to $876.61 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 decreased to 9.04. In other words, insiders sold more than 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 13.53. 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.

Insider Sell Buy Ratio February 7, 2014
Insider Sell Buy Ratio February 7, 2014

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:

Insider buying made a comeback over the last three weeks and it was interesting to note the large number of purchases by insiders of regional banks. Two other insider purchases that did not make the list but are worth mentioning include a cluster purchase by insiders of ADT (ADT) following a decline in the stock last month and additional purchases of Cadence Design Systems (CDNS) by CEO and venture capitalist Lip Bu Tan.

1. JPMorgan Chase & Co. (JPM): $56.62

Director James S. Crown acquired 500,000 shares of JP Morgan, paying $55.53 per share for a total amount of $27.76 million. These shares were purchased indirectly through various partnerships and by Mr. Crown’s spouse.

You can view the list of recent insider transactions for JPMorgan Chase & Co. here.

P/E: 13.02Forward P/E: 8.92Industry P/E: N/A
P/S: 2.2Price/Book: 1.06EV/EBITDA: N/A
Market Cap: $213.01BAvg. Daily Volume: 18,451,40052 Week Range: $46.05 – $59.82

2. Opko Health, Inc. (OPK): $7.74

CEO & Chairman Phillip Frost M.D. acquired 586,800 shares of this medical devices and drug development company, paying $7.57 per share for a total amount of $4.44 million. These shares were purchased indirectly by Frost Gamma Investments Trust.

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

P/E: N/AForward P/E: N/AIndustry P/E: N/A
P/S: 33.89Price/Book: 3.57EV/EBITDA: -86.75
Market Cap: $3.16BAvg. Daily Volume: 4,350,74052 Week Range: $6.14 – $12.95

3. Aon plc (AON): $81.02

Director Lester B. Knight acquired 30,000 shares of this risk management, HR services and insurance company, paying $77.31 per share for a total amount of $2.32 million. Mr. Knight gifted 47,639 shares to his wife and then acquired 30,000 shares through open market purchases.

You can view the list of recent insider transactions for Aon plc here.

P/E: 22.95Forward P/E: 13.85Industry P/E: N/A
P/S: 2Price/Book: 2.91EV/EBITDA: 12.15
Market Cap: $24.79BAvg. Daily Volume: 1,447,32052 Week Range: $56.2 – $84.63

4. Calamos Asset Management Inc. (CLMS): $11.18

Chairman, CEO, Global Co-CIO John P. Calamos Sr. acquired 177,080 shares of this asset management company, paying $11.11 per share for a total amount of $1.97 million. Mr. Calamos increased his stake by 9.17% to 2,107,806 shares with this purchase.

You can view the list of recent insider transactions for Calamos Asset Management Inc. here.

P/E: 12.15Forward P/E: 18.03Industry P/E: 19.85
P/S: 0.84Price/Book: 1.09EV/EBITDA: -2.51
Market Cap: $229.53MAvg. Daily Volume: 146,79452 Week Range: $9.46 – $12.26

5. Phillips 66 (PSX): $74.28

Director William R. Loomis acquired 13,600 shares of this downstream energy company, paying $73.55 per share for a total amount of $1 million. Mr. Loomis increased his stake by 175.26% to 21,360 shares with this purchase.

You can view the list of recent insider transactions for Phillips 66 here.

P/E: 12.34Forward P/E: 9.65Industry P/E: N/A
P/S: 0.27Price/Book: 2.04EV/EBITDA: 12.01
Market Cap: $43.83BAvg. Daily Volume: 3,548,75052 Week Range: $54.8 – $79

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

Notable Insider Sales:

1. Rexnord Corporation (RXN): $27.27

Shares of this diversified machinery company were sold by 2 insiders:

  • Director George M. Sherman sold 1,070,000 shares for $24.81, generating $26.55 million from the sale. 242,520 of these shares were sold indirectly by Mr. Sherman’s spouse.
  • EVP – Corporate & Business Development Praveen R. Jeyarajah sold 27,500 shares for $26.01, generating $715,168 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 Rexnord Corporation here.

P/E: 188.07Forward P/E: 16.23Industry P/E: N/A
P/S: 1.28Price/Book: 6.04EV/EBITDA: 11.05
Market Cap: $2.67BAvg. Daily Volume: 334,34252 Week Range: $15.88 – $29.29

2. Texas Instruments Inc. (TXN): $41.95

Shares of this semiconductor company were sold by 13 insiders:

  • Sr. Vice President Teresa L. West sold 81,668 shares for $42.37, generating $3.46 million from the sale. 50,000 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Sr. Vice President John J. Szczsponik Jr. sold 66,668 shares for $42.31, generating $2.82 million from the sale.
  • Sr. Vice President Kevin J. Ritchie sold 62,501 shares for $42.31, generating $2.64 million from the sale.
  • Sr. Vice President Gregory R. Delagi sold 61,251 shares for $42.01, generating $2.57 million from the sale.
  • Sr. Vice President David K. Heacock sold 46,668 shares for $42.31, generating $1.97 million from the sale.
  • Sr. Vice President Stephen A. Anderson sold 46,668 shares for $42.31, generating $1.97 million from the sale.
  • SVP, Secretary & Gen Counsel Joseph F. Hubach sold 45,000 shares for $42.01, generating $1.89 million from the sale.
  • Sr. Vice President Brian T. Crutcher sold 42,802 shares for $42.22, generating $1.81 million from the sale. 20,893 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Sr. Vice President Niels Anderskouv sold 41,668 shares for $42.01, generating $1.75 million from the sale.
  • Sr. Vice President Darla H. Whitaker sold 30,000 shares for $42.01, generating $1.26 million from the sale.
  • Sr. Vice President Robert K. Novak sold 28,334 shares for $42.31, generating $1.19 million from the sale.
  • Sr. Vice President Melendy E. Lovett sold 25,000 shares for $42.31, generating $1.06 million from the sale.
  • Sr. Vice President Sami Kiriaki sold 6,734 shares for $42.31, generating $284,908 from the sale.

You can view the list of recent insider transactions for Texas Instruments Inc. here.

P/E: 21.96Forward P/E: 17.48Industry P/E: N/A
P/S: 3.66Price/Book: 4.13EV/EBITDA: 11.25
Market Cap: $45.42BAvg. Daily Volume: 5,735,64052 Week Range: $32.19 – $44.82

3. Mid-America Apartment Communities Inc. (MAA): $66.63

Shares of this apartment REIT were sold by 2 insiders:

  • Director Thomas H. Lowder sold 140,000 shares for $65.18, generating $9.13 million from the sale.
  • Director James K. Lowder sold 80,000 shares for $65.15, generating $5.21 million from the sale. These shares were purchased indirectly by JKL Capital Holdings, LLC.

You can view the list of recent insider transactions for Mid-America Apartment Communities Inc. here.

P/E: 19.29Forward P/E: 12.29Industry P/E: N/A
P/S: 9.02Price/Book: 2.82EV/EBITDA: 22.52
Market Cap: $4.98BAvg. Daily Volume: 528,47052 Week Range: $59.23 – $74.94

4. Wynn Resorts Ltd. (WYNN): $221.95

Shares of this resorts & casinos operator were sold by 5 insiders:

  • President, CFO & Treasurer Matt Maddox sold 30,000 shares for $207.01, generating $6.21 million from the sale.
  • Director Alvin V. Shoemaker sold 10,000 shares for $215.65, generating $2.16 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Robert Jos Miller sold 10,000 shares for $215.46, generating $2.15 million from the sale.
  • President, Wynn International Marketing Linda Chen sold 10,000 shares for $216.00, generating $2.16 million from the sale.
  • EVP, Chief Administrative Officer John Strzemp sold 5,000 shares for $211.57, generating $1.06 million from the sale.

You can view the list of recent insider transactions for Wynn Resorts Ltd. here.

P/E: 30.96Forward P/E: 24.8Industry P/E: N/A
P/S: 3.88Price/Book: N/AEV/EBITDA: 13.04
Market Cap: $22.36BAvg. Daily Volume: 1,564,62052 Week Range: $113.39 – $222.45

5. Global Payments Inc. (GPN): $65.96

Chairman of the Board Paul R. Garcia sold 164,000 shares of this electronic payment service provider for $67.56, generating $11.08 million from the sale. 76,000 of these shares were sold indirectly by a family limited partnership.

You can view the list of recent insider transactions for Global Payments Inc. here.

P/E: 20.99Forward P/E: 14.63Industry P/E: N/A
P/S: 1.9Price/Book: 4.3EV/EBITDA: 9.86
Market Cap: $4.74BAvg. Daily Volume: 753,80852 Week Range: $43.73 – $70.32

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

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria