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Welcome to edition 348 of Insider Weekends. Insider buying increased for a second week in a row with insiders buying $50.18 million of stock compared to $24.08 million in the week prior. Selling also increased with insiders selling $1.91 billion of stock last week compared to $1.53 billion in the week prior. The S&P 500 gained 1.51% for the week and hit all time highs.
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 38.04. In other words, insiders sold more than 38 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 63.73.
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. Twitter, Inc. (TWTR): $16.62
Chief Executive Officer Jack Dorsey acquired 425,998 shares of Twitter, paying $16.43 per share for a total amount of $7 million. These shares were purchased indirectly through a trust.