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Welcome to edition 342 of Insider Weekends. Insider buying decreased significantly last week with insiders buying $3.96 million of stock compared to $62.68 million in the week prior. Selling increased with insiders selling $523.98 million of stock last week compared to $331.08 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 132.19. In other words, insiders sold more than 132 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 5.28. While this might seem highly unusual, insider buying dips during the first two weeks of each quarter and we saw purchases of just $3.38 million in the first full week of 2014. The insider sell/buy ratio had jumped to 207.8 that week as well. 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. Great Elm Capital Group, Inc. (GEC): $3.6
Shares of this holding company were acquired by 4 insiders: