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Insider Weekends – July 18, 2014

  • July 19, 2014

Welcome to edition 213 of Insider Weekends. Insider buying declined significantly last week with insiders buying $8.35 million of stock compared to $36.57 million in the week prior. Selling on the other hand increased with insiders selling $492.89 million of stock last week compared to $292.66 million in the week prior. With the start of earnings season, insider transactions are likely to be muted for a couple of weeks.

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 59.03. In other words, insiders sold more than 59 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 8.66. 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. Frank’s International N.V. (FI): $23.03

Chairman of Supervisory Board, Director, Chief Executive Officer and President, D. Keith Mosing acquired 112,889 shares of this provider of  engineered tubular services to the energy industry, paying $22.92 per share for a total amount of $2.59 million. Mr. Mosing increased his direct stake by 99.88% to 225,915 shares with this purchase. 26,776 of these shares were purchased indirectly by Mr. Mosing’s child.

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