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Welcome to edition 343 of Insider Weekends. Insider buying increased last week with insiders buying $27.16 million of stock compared to $3.96 million in the week prior. Selling declined with insiders selling $497.16 million of stock last week compared to $523.98 million in the week prior. About a fourth of the purchases was related to Micheal Dell acquiring $7 million worth of Dell’s tracking stock (DVMT) for VMWare (VMW) as discussed below.
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 to 18.31. In other words, insiders sold more than 18 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 132.19.
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. Dell Technologies Inc. (DVMT): $58.17
Chief Executive Officer Michael S. Dell acquired 254,545 shares of this VMWare tracking stock, paying $27.50 per share for a total amount of $6.99 million. Mr. Dell increased his stake by 781.41% to 287,120 shares with this purchase.