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Welcome to edition 350 of Insider Weekends. Insider buying decreased significantly with insiders buying $57.94 million of stock compared to $156.38 million in the week prior. We saw a larger group of insiders buying last week even though the total for the week was lower than the week prior, which was dominated by a single large purchase by Carl Icahn. Selling also declined with insiders selling $2.1 billion of stock last week compared to $2.45 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 went up to 36.19. In other words, insiders sold more than 36 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 15.65.
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. Fiesta Restaurant Group, Inc. (FRGI): $19.8
Director Brian P. Friedman acquired 660,000 shares of this restaurant chain, paying $20.33 per share for a total amount of $13.42 million. These shares were purchased indirectly by Leucadia National Corporation.