Insider Weekends – Insiders at Monsanto Sell Stock

Welcome to edition 330 of Insider Weekends. Insider buying decreased last week with insiders buying $25.96 million of stock compared to $58 million in the week prior. Selling on the other hand increased with insiders selling $641.89 million of stock last week compared to $562 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 24.73. In other words, insiders sold  almost 25 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 9.69. 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 October 14, 2016

Insider Sell Buy Ratio October 14, 2016

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. Lands’ End, Inc. (LE): $15.23

Shares of this apparel retailer were acquired by 2 insiders:

  • 10% Owner Edward S. Lampert acquired 331,437 shares, paying $14.95 per share for a total amount of $4.96 million.
  • Director Elizabeth Leykum acquired 5,000 shares, paying $15.00 per share for a total amount of $74,996.  These shares were purchased indirectly by Serenade Capital LLC.

These purchases follow a cluster of small purchases by Mr. Lampert and three other directors last week. At a time when most brick-and-mortar retailers are out of favor with investors, it is perplexing to see purchases of Land’s End by its insiders and especially by Mr. Lampert.

You can view the list of recent insider transactions for Lands’ End, Inc. here.

P/E: N/A Forward P/E: 20.86 Industry P/E: 62.32
P/S: 0.36 Price/Book: 1.3 EV/EBITDA: 9.25
Market Cap: $487.81M Avg. Daily Volume: 182,986 52 Week Range: $14.03 – $27.6

2. COUPA SOFTWARE INC (COUP): $29.03

Shares of this cloud-based spend management company were acquired by 2 insiders:

  • Director Neeraj Agrawal acquired 275,000 shares, paying $18.00 per share for a total amount of $4.95 million. These shares were purchased indirectly by Battery Ventures VIII, L.P.
  • 10% Owner Michael Scott Irwin acquired 1,500 shares, paying $35.33 per share for a total amount of $53,000.

Coupa went public last week at a price of $18/share and more than doubled on its first day of trading, hitting an intra-day high of $41.61 before giving back some of its gains. We normally tend to exclude IPO related purchases but decided to make an exception in this case because it is unusual to see a venture capital firm like Battery Ventures buy more stock in the IPO instead of reducing its stake.

You can view the list of recent insider transactions for COUPA SOFTWARE INC here.

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: 12.76 Price/Book: N/A EV/EBITDA: N/A
Market Cap: $1.4B Avg. Daily Volume: N/A 52 Week Range: $25.5 – $41.61

3. Alnylam Pharmaceuticals, Inc. (ALNY): $35.32

Director David E. Pyott acquired 27,900 shares of this biotech company, paying $37.00 per share for a total amount of $1.03 million.  These shares were purchased indirectly through a trust.

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

P/E: N/A Forward P/E: N/A Industry P/E: 24.8
P/S: 103.6 Price/Book: 2.82 EV/EBITDA: -6.76
Market Cap: $3.03B Avg. Daily Volume: 1,102,480 52 Week Range: $33.16 – $110.75

4. AZZ incorporated (AZZ): $54.6

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

  • President and CEO Thomas E. Ferguson acquired 7,500 shares, paying $55.24 per share for a total amount of $414,292. Mr. Ferguson increased his stake by 34.44% to 29,276 shares with this purchase.
  • VP & Chief Accounting Officer Robert Joseph Steines acquired 1,000 shares, paying $54.54 per share for a total amount of $54,540. Mr. Steines increased his stake by 61.54% to 2,625 shares with this purchase.

You can view the list of recent insider transactions for AZZ incorporated here.

P/E: 20.16 Forward P/E: N/A Industry P/E: 23.17
P/S: 1.58 Price/Book: 2.78 EV/EBITDA: 10.02
Market Cap: $1.42B Avg. Daily Volume: 155,771 52 Week Range: $47.04 – $67.98

5. Ryman Hospitality Properties, Inc. (RHP): $49.67

Chairman & CEO Colin V. Reed acquired 8,040 shares of this hotel operator, paying $49.75 per share for a total amount of $399,966. Mr. Reed increased his stake by 0.79% to 1,030,901 shares with this purchase.

You can view the list of recent insider transactions for Ryman Hospitality Properties, Inc. here.

P/E: 17.87 Forward P/E: 15.82 Industry P/E: 16.53
P/S: 2.24 Price/Book: 7.02 EV/EBITDA: 13.32
Market Cap: $2.51B Avg. Daily Volume: 282,454 52 Week Range: $41.5 – $61.02

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

Notable Insider Sales:

1. Facebook, Inc. (FB): $127.88

Shares of Facebook were sold by 3 insiders:

  • Director Jan Koum sold 1,002,114 shares for $129.73, generating $130 million from the sale. These shares were sold indirectly through a trust.
  • COB and CEO Mark Zuckerberg sold 740,626 shares for $128.27, generating $94.99 million from the sale. These shares were sold indirectly by the Chan Zuckerberg Foundation.
  • VP and General Counsel Colin Stretch sold 750 shares for $129.47, generating $97,100 from the sale.

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

P/E: 61.13 Forward P/E: 25.22 Industry P/E: 27.06
P/S: 16.56 Price/Book: 7.26 EV/EBITDA: 31.04
Market Cap: $367.23B Avg. Daily Volume: 18,443,200 52 Week Range: $89.37 – $131.98

2. Palo Alto Networks, Inc. (PANW): $150.49

Shares of this network security company were sold by 2 insiders:

  • CTO Nir Zuk sold 103,152 shares for $159.36, generating $16.44 million from the sale.
  • Director Daniel J. Warmenhoven sold 1,950 shares for $159.61, generating $311,240 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 Palo Alto Networks, Inc. here.

P/E: N/A Forward P/E: 39.6 Industry P/E: 18.19
P/S: 9.98 Price/Book: 17.34 EV/EBITDA: -87.54
Market Cap: $13.67B Avg. Daily Volume: 1,555,970 52 Week Range: $111.09 – $194.73

3. Monsanto Company (MON): $102.11

Shares of this agricultural products company were sold by 2 insiders:

  • EVP, Chief Technology Officer Robert T. Fraley sold 80,631 shares for $102.04, generating $8.23 million from the sale. 56,480 of these shares were sold as a result of exercising options immediately prior to the sale.
  • EVP, Chief HR Officer Steven Mizell sold 310 shares for $103.09, generating $31,958 from the sale.

I usually don’t may much attention to insider selling but this caught my eye because these insiders are selling at prices well below the $128/share that Bayer has agreed to pay to acquire Monsanto. The stock has been trading well below the $128/share acquisition price, reflecting that the market does not expect the deal to go through.

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

P/E: 34.17 Forward P/E: N/A Industry P/E: 26.41
P/S: 3.32 Price/Book: 9.9 EV/EBITDA: 13.98
Market Cap: $44.70B Avg. Daily Volume: 3,780,160 52 Week Range: $83.73 – $114.26

4. Applied Materials, Inc. (AMAT): $28.07

President and CEO Gary E. Dickerson sold 229,935 shares of this semiconductor equipment and services provider for $29.71, generating $6.83 million from the sale.

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

P/E: 22.14 Forward P/E: 12.59 Industry P/E: 22.59
P/S: 3.04 Price/Book: 4.42 EV/EBITDA: 14.29
Market Cap: $30.34B Avg. Daily Volume: 12,662,600 52 Week Range: $15.44 – $31.07

5. salesforce.com, inc. (CRM): $74.27

Shares of this cloud software company were sold by 3 insiders:

  • Chairman of the Board and CEO Marc Benioff sold 62,500 shares for $72.61, generating $4.54 million from the sale.
  • Director Maynard G. Webb Jr. sold 15,000 shares for $75.00, generating $1.13 million from the sale.
  • Co-Founder Parker Harris sold 5,000 shares for $72.45, generating $362,260 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 salesforce.com, inc. here.

P/E: 229.23 Forward P/E: 58.48 Industry P/E: 36.36
P/S: 6.47 Price/Book: 7.89 EV/EBITDA: 93.31
Market Cap: $50.44B Avg. Daily Volume: 7,304,430 52 Week Range: $52.6 – $84.48

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

Disclaimer: I do not hold any positions in any of the stocks mentioned in this article. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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