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Welcome to edition 361 of Insider Weekends. Insider buying more than doubled with insiders buying $293.62 million of stock compared to $143.26 million in the week prior. Selling declined with insiders selling $1.82 billion of stock last week compared to $2.11 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 dropped to 6.18. In other words, insiders sold more than 6 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 14.7.
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:
There were several institutional purchases last week that were partially responsible for the spike in insider buying. Some of these institution purchases include Berkshire Hathaway’s Ted Weschler adding to their stake in Liberty Media (LSXMK), activist hedge fund Trian Partners increasing their stake in Pentair (PNR) and Bruce Berkowitz adding to his stake in Seritage Growth Properties (SRG) once again.