Welcome to edition 338 of Insider Weekends. Insider buying more than doubled last week with insiders buying $138.18 million of stock compared to $57.41 million in the week prior. Selling on the other hand decreased with insiders selling $1.22 billion of stock last week compared to $1.66 billion 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 dropped down to 8.85. In other words, insiders sold almost 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 28.93. 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. The Medicines Company (MDCO): $34.85
Shares of this pharmaceutical company were acquired by 2 insiders:
You can view the list of recent insider transactions for The Medicines Company here.
P/E: N/A | Forward P/E: N/A | Industry P/E: 28.13 |
P/S: 10.98 | Price/Book: 3.02 | EV/EBITDA: -9.84 |
Market Cap: $2.42B | Avg. Daily Volume: 1,350,280 | 52 Week Range: $27.5 – $41.79 |
2. Terrapin 3 Acquisition Corporation (TRTL): $9.99
Shares of this holding company were acquired by 2 insiders:
This was an interesting purchase because Terrapin 3 Acquisition Corporation, as the name suggests, was set up to acquire or merge into another business and it does not have any operations of its own. In the company’s own words, it is a publicly traded blank check company.
That blank check will however be cashed soon as the company has called for a shareholder meeting on December 12 to approve its merger with Yatra Online, an India-based online travel agency for an enterprise value of $218 million. Yatra reminds me of MakeMyTrip.com (MMYT), another India-based online travel company that has an enterprise value of just over $1 billion.
You can view the list of recent insider transactions for Terrapin 3 Acquisition Corporation here.
P/E: N/A | Forward P/E: N/A | Industry P/E: N/A |
P/S: N/A | Price/Book: 12.91 | EV/EBITDA: N/A |
Market Cap: $64.52M | Avg. Daily Volume: 50,553 | 52 Week Range: $9.8 – $10.25 |
3. Innovative Industrial Properties, Inc. (IIPR): $16.95
Shares of this real estate company with a specific focus on industrial properties were acquired by 4 insiders:
This is the first insider purchase I have seen of a company that leases properties to “state-licensed operators for their regulated medical-use cannabis facilities”. I wonder if California’s decision to legalize marijuana is fueling the optimism of these insiders.
You can view the list of recent insider transactions for Innovative Industrial Properties, Inc. here.
P/E: N/A | Forward P/E: N/A | Industry P/E: N/A |
P/S: 1.55 | Price/Book: 17 | EV/EBITDA: 1.53 |
Market Cap: $170.56M | Avg. Daily Volume: 377,283 | 52 Week Range: $14.50 – $20.52 |
4. Sohu.com Inc. (SOHU): $36.75
CEO Charles Zhang acquired 48,000 shares of this Chinese online media company, paying $34.27 per share for a total amount of $1.64 million. These shares were purchased indirectly by Photon Group Limited.
You can view the list of recent insider transactions for Sohu.com Inc. here.
P/E: N/A | Forward P/E: N/A | Industry P/E: N/A |
P/S: 0.82 | Price/Book: 1.29 | EV/EBITDA: 0.44 |
Market Cap: $1.42B | Avg. Daily Volume: 248,206 | 52 Week Range: $32.6 – $59.5 |
5. Paramount Group, Inc. (PGRE): $16.56
Director Katharina Otto-Bernstein acquired 100,000 shares of this real estate firm, paying $15.59 per share for a total amount of $1.56 million. Mr. Otto-Bernstein increased his stake by 0.83% to 12,131,489 shares with this purchase.
You can view the list of recent insider transactions for Paramount Group, Inc. here.
P/E: 871.58 | Forward P/E: N/A | Industry P/E: N/A |
P/S: 5.4 | Price/Book: 0.96 | EV/EBITDA: 17.87 |
Market Cap: $4.41B | Avg. Daily Volume: 828,517 | 52 Week Range: $14.23 – $18.28 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Workday, Inc. (WDAY): $70.65
Shares of this application software company were sold by 4 insiders:
You can view the list of recent insider transactions for Workday, Inc. here.
P/E: N/A | Forward P/E: 252.32 | Industry P/E: 50.88 |
P/S: 9.91 | Price/Book: 12.69 | EV/EBITDA: -52.43 |
Market Cap: $14.20B | Avg. Daily Volume: 1,755,660 | 52 Week Range: $47.32 – $93.35 |
2. Western Alliance Bancorporation (WAL): $49.73
Shares of this regional bank were sold by 8 insiders:
You can view the list of recent insider transactions for Western Alliance Bancorporation here.
P/E: 20.6 | Forward P/E: 17.21 | Industry P/E: 16.96 |
P/S: 7.95 | Price/Book: 2.82 | EV/EBITDA: N/A |
Market Cap: $5.07B | Avg. Daily Volume: 736,255 | 52 Week Range: $26.6 – $50.72 |
3. Headwaters Incorporated (HW): $23.58
Shares of this general building materials company were sold by 4 insiders:
You can view the list of recent insider transactions for Headwaters Incorporated here.
P/E: 36.79 | Forward P/E: 15.21 | Industry P/E: 25.7 |
P/S: 1.79 | Price/Book: 6 | EV/EBITDA: 14.06 |
Market Cap: $1.75B | Avg. Daily Volume: 1,199,970 | 52 Week Range: $13.62 – $23.99 |
4. QVC Group (QVCA): $20.81
Director Mark C. Vadon sold 616,810 shares of this online and television-based commerce company for $20.50, generating $12.64 million from the sale. These shares were sold indirectly by Lake Tana LLC.
You can view the list of recent insider transactions for QVC Group here.
P/E: 20.01 | Forward P/E: 17.94 | Industry P/E: 46.63 |
P/S: 0.95 | Price/Book: 1.97 | EV/EBITDA: 8.91 |
Market Cap: $9.81B | Avg. Daily Volume: 3,620,800 | 52 Week Range: $17.88 – $27.58 |
5. WebMD Health Corp. (WBMD): $53.02
Shares of this health information services provider were sold by 6 insiders:
You can view the list of recent insider transactions for WebMD Health Corp. here.
P/E: 29.62 | Forward P/E: 26.64 | Industry P/E: 61.35 |
P/S: 2.89 | Price/Book: 7.05 | EV/EBITDA: 11.3 |
Market Cap: $1.96B | Avg. Daily Volume: 731,531 | 52 Week Range: $45.46 – $67.55 |
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long position in Workday (WDAY). 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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