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Welcome to edition 356 of Insider Weekends. Insider buying rebounded sharply with insiders buying $49.51 million of stock compared to $5.99 million in the week prior. Selling on the other hand decreased with insiders selling $408.7 million of stock last week compared to $712.03 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 8.25. In other words, insiders sold more than 8 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 118.82.
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. IDT Corporation (IDT): $14.63
Chairman of the Board Howard S. Jonas acquired 728,332 shares of this telecommunications company, paying $13.73 per share for a total amount of $10 million. Mr. Jonas increased his stake by 316.09% to 958,752 shares with this purchase. This was a Class B Treasury stock purchase.