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Welcome to edition 358 of Insider Weekends. Insider buying increased significantly with insiders buying $318.69 million of stock compared to $58.58 million in the week prior. The majority of this buying was driven by Berkshire Hathaway adding to its Liberty SiriusXM stake as discussed below. Selling also increased with insiders selling $400.52 million of stock last week compared to $386.44 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 dropped to 1.26. In other words, insiders sold about as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 6.6.
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 Liberty SiriusXM Group (LSXMA): $38.1
Member of 10% owner group Ted R. Weschler acquired 6,345,128 shares of this broadcasting company, paying $39.95 per share for a total amount of $253.50 million. These shares were purchased indirectly by Berkshire Hathaway (BRK-A) and included purchases of both series C (LSXMK) and series A (LSXMA) stock.