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Insider Weekends – January 16, 2015

  • January 18, 2015

Welcome to edition 239 of Insider Weekends. Insider buying decreased last week with insiders buying $40.18 million of stock compared to $104.71 million in the week prior. Selling also decreased with insiders selling $521.34 million of stock last week compared to $728.27 million in the week prior. On account of earnings season, insider activity remained muted last week.

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 12.98. In other words, insiders sold almost 13 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 6.58. 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 January 16, 2015
Insider Sell Buy Ratio January 16, 2015

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. Biglari Holdings Inc. (BH): $416.64

Chairman and CEO Sardar Biglari, acquired 17,854 shares of this restaurant holding company, paying $410.77 per share for a total amount of $7.33 million. These shares were acquired indirectly through The Lion Fund.

You can view the list of recent insider transactions for Biglari Holdings Inc. here.

P/E: 24.77Forward P/E: N/AIndustry P/E: 34.68
P/S: 1.07Price/Book: 1.34EV/EBITDA: 25.59
Market Cap: $860.36MAvg. Daily Volume: 9,32452 Week Range: $312 – $475.4

2. Worthington Industries, Inc. (WOR): $25.65

Shares of this diversified metals processing company were acquired by 5 insiders:

  • Director Michael J. Endres acquired 40,000 shares, paying $24.47 per share for a total amount of $978,680. Mr. Endres increased his stake by 27.39% to 186,040 shares with this purchase.
  • Director John B. Blystone acquired 10,000 shares, paying $24.33 per share for a total amount of $243,307. Mr. Blystone increased his stake by 23.27% to 52,967 shares with this purchase.
  • Director Mark C. Davis acquired 3,000 shares, paying $24.41 per share for a total amount of $73,234. Mr. Davis increased his stake by 22.74% to 16,190 shares with this purchase.
  • Director Ozey K. Horton Jr. acquired 1,000 shares, paying $24.42 per share for a total amount of $24,419. Mr. Horton increased his stake by 7.96% to 13,565 shares with this purchase.
  • VP Mergers & Acquisitions Joseph B. Hayek acquired 1,000 shares, paying $24.29 per share for a total amount of $24,292. Mr. Hayek increased his stake by 17.86% to 6,600 shares with this purchase.

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

P/E: 12.28Forward P/E: 8.81Industry P/E: 12.16
P/S: 0.5Price/Book: 1.88EV/EBITDA: 8.29
Market Cap: $1.76BAvg. Daily Volume: 397,28352 Week Range: $24.02 – $45.39

3. Opko Health, Inc. (OPK): $10.02

CEO & Chairman Phillip Frost M.D. acquired 78,200 shares of this medical devices and drug development company, paying $10.06 per share for a total amount of $786,554. 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: 31.55
P/S: 50.16Price/Book: 4.82EV/EBITDA: -45.21
Market Cap: $4.35BAvg. Daily Volume: 2,492,58052 Week Range: $7.32 – $10.44

4. Calamos Asset Management Inc. (CLMS): $12.92

Chairman, CEO, Global Co-CIO John P. Calamos Sr. acquired 62,864 shares of this asset management company, paying $12.45 per share for a total amount of $782,559. Mr. Calamos increased his stake by 1.73% to 3,704,787 shares with this purchase.

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

P/E: 12.63Forward P/E: 23.49Industry P/E: 14.26
P/S: 1Price/Book: 1.1EV/EBITDA: -2.59
Market Cap: $265.25MAvg. Daily Volume: 107,08452 Week Range: $10.67 – $14.44

5. Genuine Parts Company (GPC): $97.1

Chief Executive Officer Thomas Gallagher acquired 5,000 shares of this automotive parts company, paying $95.25 per share for a total amount of $476,250. Mr. Gallagher increased his stake by 0.91% to 551,610 shares with this purchase.

You can view the list of recent insider transactions for Genuine Parts Company here.

P/E: 21.58Forward P/E: 19.3Industry P/E: 23.33
P/S: 0.97Price/Book: 4.16EV/EBITDA: 12.46
Market Cap: $14.84BAvg. Daily Volume: 733,12952 Week Range: $76.5 – $109

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

Notable Insider Sales:

1. Bed Bath & Beyond Inc. (BBBY): $73.54

Shares of this home products retailer were sold by 2 insiders:

  • Co-Chairman Leonard Feinstein sold 314,562 shares for $73.63, generating $23.16 million from the sale.
  • Co-Chairman Warren Eisenberg sold 199,992 shares for $73.63, generating $14.73 million from the sale.

You can view the list of recent insider transactions for Bed Bath & Beyond Inc. here.

P/E: 14.88Forward P/E: 13.49Industry P/E: 24.48
P/S: 1.12Price/Book: 4.46EV/EBITDA: 7.67
Market Cap: $13.35BAvg. Daily Volume: 2,545,08052 Week Range: $54.96 – $79.64

2. G-III Apparel Group, Ltd. (GIII): $94.04

Shares of this apparel chain were sold by 3 insiders:

  • Chief Executive Officer Morris Goldfarb sold 98,091 shares for $94.94, generating $9.3 million from the sale.
  • Director Katz Jeanette Nostra sold 5,867 shares for $101.57, generating $595,935 from the sale.
  • Director Bokhorst Willem Van sold 3,100 shares for $101.55, generating $314,820 from the sale.

You can view the list of recent insider transactions for G-III Apparel Group, Ltd. here.

P/E: 20.08Forward P/E: 18.33Industry P/E: 21.54
P/S: 1.02Price/Book: 3.17EV/EBITDA: 13.05
Market Cap: $2.11BAvg. Daily Volume: 246,80052 Week Range: $64 – $103.18

3. Sonic Corp. (SONC): $31.91

Shares of this restaurant chain were sold by 4 insiders:

  • Chief Executive Officer J. Clifford Hudson sold 190,000 shares for $31.57, generating $5.99 million from the sale. These shares were sold indirectly through a trust.
  • Director Federico F. Pena sold 10,125 shares for $30.80, generating $311,888 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Frank E. Richardson III sold 6,840 shares for $31.30, generating $214,092 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Vice President Carolyn C. Cummins sold 2,000 shares for $31.24, generating $62,480 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 Sonic Corp. here.

P/E: 35.73Forward P/E: 26.59Industry P/E: 34.68
P/S: 2.95Price/Book: 27EV/EBITDA: 14.42
Market Cap: $1.69BAvg. Daily Volume: 920,54852 Week Range: $16.92 – $32.06

4. Six Flags Entertainment Corporation (SIX): $43.04

Chairman, President & CEO James Reid-Anderson sold 149,300 shares of this theme park operator for $43.97, generating $6.56 million from the sale.

You can view the list of recent insider transactions for Six Flags Entertainment Corporation here.

P/E: 34.16Forward P/E: 29.68Industry P/E: 34.11
P/S: 3.51Price/Book: 11.65EV/EBITDA: 14
Market Cap: $4.03BAvg. Daily Volume: 760,99252 Week Range: $31.77 – $44.46

5. Twitter, Inc. (TWTR): $37.31

Shares of Twitter were sold by 2 insiders:

  • Director Jack Dorsey sold 151,251 shares for $39.91, generating $6.04 million from the sale. These shares were sold indirectly through a trust.
  • General Counsel Vijaya Gadde sold 6,723 shares for $40.03, generating $269,106 from the sale.

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

P/E: N/AForward P/E: 109.74Industry P/E: 40.08
P/S: 19.79Price/Book: 6.55EV/EBITDA: -27.24
Market Cap: $23.33BAvg. Daily Volume: 22,316,50052 Week Range: $29.51 – $67.24

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

Voluntary Disclosure: I hold a long position in Twitter (TWTR)

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria