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Insider Weekends – January 2, 2015

  • January 4, 2015

Happy New Year and welcome to edition 237 of Insider Weekends. Insider buying declined last week with insiders buying $18.4 million of stock compared to $83.07 million in the week prior. Selling also declined sharply with insiders selling $258.37 million of stock last week compared to $628.05 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 14.04. In other words, insiders sold more than 14 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 7.56. 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 2, 2015
Insider Sell Buy Ratio January 2, 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): $403.01

Chairman and CEO Sardar Biglari, acquired 13,348 shares of this restaurant holding company, paying $388.23 per share for a total amount of $5.18 million. These shares were acquired indirectly through The Lion Fund.

This is the second week in a row we are reporting on insider purchases by Mr. Biglari.

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

P/E: 23.96Forward P/E: N/AIndustry P/E: 18.48
P/S: 1.04Price/Book: 1.29EV/EBITDA: 23.49
Market Cap: $832.22MAvg. Daily Volume: 7,70552 Week Range: $312 – $475.404

2. OCI Partners LP (OCIP): $15.79

Director Nassef Sawiris acquired 87,465 shares of this ammonia and methanol production company, paying $15.71 per share for a total amount of $1.37 million. These shares were acquired indirectly through a trust.

You can view the list of recent insider transactions for OCI Partners LP here.

P/E: 41.34Forward P/E: 9.29Industry P/E: N/A
P/S: 3.09Price/Book: 10.84EV/EBITDA: N/A
Market Cap: $1.27BAvg. Daily Volume: 44,25752 Week Range: $14.57 – $28.69

3. U.S. Silica Holdings, Inc. (SLCA): $26.51

Shares of this commercial silica producer were acquired by 3 insiders:

  • Director Peter Clark Bernard acquired 5,000 shares, paying $25.41 per share for a total amount of $127,050. Mr. Bernard increased his stake by 64.05% to 12,807 shares with this purchase.
  • President & CEO Bryan Adair Shinn acquired 4,000 shares, paying $25.43 per share for a total amount of $101,720. Mr. Shinn increased his stake by 20.99% to 23,057 shares with this purchase.
  • VP, Chief Operating Officer Michael L. Winkler acquired 1,100 shares, paying $26.65 per share for a total amount of $29,315. Mr. Winkler increased his stake by 9.17% to 13,090 shares with this purchase.

The stock of U.S. Silica has declined sharply over the last four months, dropping from a high of over $73 in early September to current levels. While the stock does look cheap and the company services industries other the oil & gas sector, it derived 77.4% of its $241.3 million in third quarter 2014 revenue from the oil & gas sector. Given the company’s heavy reliance on oil fracking, it is probably a risky way to play a potential rebound in oil prices.

Instead of battening down the hatches for what could turn out to be a protracted decline in the oil sector, the company and its insiders see value in the company. Not only are the insiders buying shares with their own money, the company also announced in late December that it is going to bump up its share buyback program from $25 million to $50 million.

You can view the list of recent insider transactions for U.S. Silica Holdings, Inc. here.

P/E: 13.72Forward P/E: 8.9Industry P/E: N/A
P/S: 1.78Price/Book: 3.54EV/EBITDA: 7.78
Market Cap: $1.43BAvg. Daily Volume: 3,786,80052 Week Range: $22.71 – $73.43

4. Oasis Petroleum Inc. (OAS): $17.04

Director Douglas E. Swanson Jr. acquired 15,000 shares of this oil exploration and production company, paying $16.80 per share for a total amount of $252,000. Mr. Swanson increased his stake by 115.83% to 27,950 shares with this purchase.

You can view the list of recent insider transactions for Oasis Petroleum Inc. here.

P/E: 4.39Forward P/E: 10.39Industry P/E: N/A
P/S: 1.18Price/Book: 0.99EV/EBITDA: 3.64
Market Cap: $1.73BAvg. Daily Volume: 6,042,21052 Week Range: $10.64 – $58.09

5. Cardinal Financial Corp. (CFNL): $19.36

Director Sidney O. Dewberry acquired 10,000 shares of this regional bank, paying $20.59 per share for a total amount of $205,890. Mr. Dewberry increased his stake by 7.49% to 143,600 shares with this purchase.

You can view the list of recent insider transactions for Cardinal Financial Corp. here.

P/E: 22.46Forward P/E: 15.61Industry P/E: N/A
P/S: 4.67Price/Book: 1.73EV/EBITDA: N/A
Market Cap: $620.08MAvg. Daily Volume: 100,66252 Week Range: $15.93 – $20.19

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

Notable Insider Sales:

1. Graham Holdings (GHC): $860.94

CEO and COB Donald Graham sold 31,900 shares of this education and media company for $881.89, generating $28.13 million from the sale. These shares were sold indirectly through various trusts.

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

P/E: N/AForward P/E: N/AIndustry P/E: N/A
P/S: N/APrice/Book: N/AEV/EBITDA: N/A
Market Cap: $N/AAvg. Daily Volume: N/A52 Week Range: $611.47 – $950.08

2. Jazz Pharmaceuticals Public Limited Company (JAZZ): $163.43

Director Seamus Mulligan sold 50,000 shares of this biotech company for $163.40, generating $8.17 million from the sale.

You can view the list of recent insider transactions for Jazz Pharmaceuticals Public Limited Company here.

P/E: 309.53Forward P/E: 16.12Industry P/E: N/A
P/S: 9.17Price/Book: 7.39EV/EBITDA: 20.3
Market Cap: $9.89BAvg. Daily Volume: 726,85152 Week Range: $120.38 – $183.84

3. Keryx Biopharmaceuticals Inc. (KERX): $14.34

Chief Executive Officer Ron Bentsur sold 538,977 shares of this biopharmaceutical company for $14.03, generating $7.56 million from the sale.

You can view the list of recent insider transactions for Keryx Biopharmaceuticals Inc. here.

P/E: N/AForward P/E: N/AIndustry P/E: N/A
P/S: 126.85Price/Book: 13.19EV/EBITDA: -15.3
Market Cap: $1.32BAvg. Daily Volume: 1,376,55052 Week Range: $11.53 – $18.48

4. Ameriprise Financial, Inc. (AMP): $132.09

Shares of this asset management company were sold by 3 insiders:

  • Chairman and CEO James M. Cracchiolo sold 29,155 shares for $136.08, generating $3.97 million from the sale.
  • President, Personal Advisors Group Donald E. Froude sold 11,914 shares for $136.18, generating $1.62 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • EVP Technology and CIO Randy Kupper sold 2,475 shares for $136.21, generating $337,110 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 Ameriprise Financial, Inc. here.

P/E: 17.5Forward P/E: 13.75Industry P/E: N/A
P/S: 2.01Price/Book: 2.97EV/EBITDA: 8.08
Market Cap: $24.37BAvg. Daily Volume: 889,96052 Week Range: $100.94 – $137.33

5. SolarCity Corporation (SCTY): $52.92

Chief Executive Officer Lyndon R. Rive sold 100,000 shares of this solar systems installer for $56.61, generating $5.66 million from the sale. 30,000 of 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 SolarCity Corporation here.

P/E: N/AForward P/E: N/AIndustry P/E: N/A
P/S: 22.27Price/Book: 7.05EV/EBITDA: -30.02
Market Cap: $5.08BAvg. Daily Volume: 3,458,41052 Week Range: $45.79 – $88.35

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

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