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Insider Weekends – April 25, 2014

  • April 27, 2014

Welcome to edition 201 of Insider Weekends. Insider buying declined last week with insiders purchasing $48.69 million of their stock compared to $99.75 million in the week prior. Selling increased with insiders selling $502.48 million of stock last week compared to $432.02 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 went up to 10.32. In other words, insiders sold more than 10 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 4.33. 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 April 25, 2014
Insider Sell Buy Ratio April 25, 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:

1. China Housing and Land Development, Inc. (CHLN): $2.35

Shares of this real estate company were acquired by 2 insiders:

  • Director Pingji Lu acquired 1,039,006 shares, paying $2.29 per share for a total amount of $2.38 million. Mr. Lu increased his stake by 26.93% to 4,896,505 shares with this purchase.
  • Chief Executive Officer Xiaohong Feng acquired 65,655 shares, paying $2.32 per share for a total amount of $152,320. Mr. Feng increased his stake by 7.63% to 926,511 shares with this purchase.

This is a late filing. The shares were purchased on March 26, 27 and 28 of this year.

You can view the list of recent insider transactions for China Housing and Land Development, Inc. here.

P/E: 7.12Forward P/E: N/AIndustry P/E: N/A
P/S: 0.45Price/Book: 0.6EV/EBITDA: 10.62
Market Cap: $81.50MAvg. Daily Volume: 48,11152 Week Range: $1.51 – $3.18

2. Opko Health, Inc. (OPK): $8.05

CEO & Chairman Phillip Frost M.D. acquired 189,200 shares of this medical devices and drug development company, paying $8.23 per share for a total amount of $1.56 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: 35.25Price/Book: 3.88EV/EBITDA: -59.22
Market Cap: $3.32BAvg. Daily Volume: 3,086,34052 Week Range: $6.14 – $12.95

3. Calamos Asset Management Inc. (CLMS): $12.47

Chairman, CEO & Global Co-CIO John P. Calamos Sr. acquired 48,570 shares of this asset management company, paying $12.49 per share for a total amount of $606,669. Mr. Calamos increased his stake by 1.65% to 2,998,933 shares with this purchase.

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

P/E: 13.55Forward P/E: 20.78Industry P/E: N/A
P/S: 0.99Price/Book: 1.2EV/EBITDA: -2.28
Market Cap: $257.58MAvg. Daily Volume: 209,55652 Week Range: $9.46 – $13.69

4. Chipotle Mexican Grill, Inc. (CMG): $502.31

Director Jeffrey B. Kindler acquired 1,000 shares of this restaurant chain, paying $509.58 per share for a total amount of $509,576. Mr. Kindler increased his stake by 319.49% to 1,313 shares with this purchase.

Mr. Kindler joined Chipotle’s board in 2012 and was the CEO of Pfizer (PFE) until December 2010. Prior to joining Pfizer, he was an executive at McDonald’s (MCD), responsible for its Partner Brands group (of which Chipotle was a part).

You can view the list of recent insider transactions for Chipotle Mexican Grill, Inc. here.

P/E: 47.13Forward P/E: 31.57Industry P/E: N/A
P/S: 4.65Price/Book: 9.59EV/EBITDA: 23.61
Market Cap: $15.62BAvg. Daily Volume: 625,48352 Week Range: $350.66 – $622.9

5. Molycorp, Inc. (MCP): $4.8

Director John Graell acquired 60,000 shares of this rare metals mining company, paying $5.90 per share for a total amount of $354,000.

This is a late filing. The shares were purchased on June 11, 2013.

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

P/E: N/AForward P/E: N/AIndustry P/E: N/A
P/S: 2.13Price/Book: 0.88EV/EBITDA: -17.78
Market Cap: $1.15BAvg. Daily Volume: 4,504,64052 Week Range: $4.51 – $8.06

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

Notable Insider Sales:

1. Facebook, Inc. (FB): $57.71

Shares of Facebook were sold by 2 insiders:

  • Chief Operating Officer Sheryl Sandberg sold 283,334 shares for $62.87, generating $17.81 million from the sale.
  • Chief Technology Officer Michael Todd Schroepfer sold 25,000 shares for $59.47, generating $1.49 million from the sale.

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

P/E: 74.66Forward P/E: 31.71Industry P/E: N/A
P/S: 17.37Price/Book: 9.26EV/EBITDA: 28.86
Market Cap: $146.87BAvg. Daily Volume: 70,531,20052 Week Range: $22.67 – $72.59

2. Mid-America Apartment Communities Inc. (MAA): $68.93

Shares of this apartment REIT were sold by 2 insiders:

  • Director Thomas H. Lowder sold 94,502 shares for $68.50, generating $6.47 million from the sale.
  • Director James K. Lowder sold 70,410 shares for $68.50, generating $4.82 million from the sale.

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

P/E: 30.33Forward P/E: 12.62Industry P/E: N/A
P/S: 8.15Price/Book: 1.75EV/EBITDA: 24.94
Market Cap: $5.17BAvg. Daily Volume: 514,49052 Week Range: $59.23 – $74.94

3. ServiceNow, Inc. (NOW): $47.23

Chief Product Officer Frederic B. Luddy sold 151,400 shares of this software-as-a-service provider for $52.57, generating $7.96 million from the sale. 50,000 of these shares were sold indirectly by Frederic B. Luddy CRT, LLC and 1,400 shares were sold indirectly by Mr. Luddy’s spouse.

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

P/E: N/AForward P/E: 214.68Industry P/E: N/A
P/S: 16.57Price/Book: 17.76EV/EBITDA: -170.3
Market Cap: $6.66BAvg. Daily Volume: 2,409,43052 Week Range: $35.21 – $71.8

4. Philip Morris International, Inc. (PM): $84.11

Chairman Louis C. Camilleri sold 90,000 shares of this tobacco products company for $83.12, generating $7.48 million from the sale.

You can view the list of recent insider transactions for Philip Morris International, Inc. here.

P/E: 16.31Forward P/E: 14.91Industry P/E: N/A
P/S: 4.35Price/Book: N/AEV/EBITDA: 11.27
Market Cap: $133.65BAvg. Daily Volume: 5,536,73052 Week Range: $75.28 – $96.73

5. Kosmos Energy Ltd. (KOS): $10.92

Shares of this oil & gas exploration and production company were sold by 3 insiders:

  • Executive VP and CFO Greg W. Dunlevy sold 201,985 shares for $11.00, generating $2.22 million from the sale.
  • Chief Exploration Officer Brian F. Maxted sold 173,738 shares for $11.00, generating $1.91 million from the sale.
  • SVP, Chief Geoscientist Paul A. Dailly sold 164,450 shares for $11.00, generating $1.81 million from the sale.

You can view the list of recent insider transactions for Kosmos Energy Ltd. here.

P/E: N/AForward P/E: N/AIndustry P/E: N/A
P/S: 4.88Price/Book: 4.19EV/EBITDA: 12.76
Market Cap: $4.13BAvg. Daily Volume: 709,46452 Week Range: $9.71 – $12.17

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

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