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Welcome to edition 360 of Insider Weekends. Insider buying increased with insiders buying $143.26 million of stock compared to $106.38 million in the week prior. Selling declined sharply with insiders selling $2.11 billion of stock last week compared to $4.63 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 14.7. In other words, insiders sold almost 15 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 43.28.
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. Revlon, Inc. (REV): $19.9
Director Ronald O. Perelman acquired 950,000 shares of this beauty care products company, paying $20.40 per share for a total amount of $19.38 million. These shares were purchased indirectly through MacAndrews & Forbes Incorporated and related entities.