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Happy Father’s Day and welcome to edition 365 of Insider Weekends. With this edition we complete seven continuous years of reporting on insider transactions. Insider buying edged up slightly last week with insiders buying $60.74 million of stock compared to $59.19 million in the week prior. Selling on the other hand declined with insiders selling $1.61 billion of stock last week compared to $2.08 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 26.53. In other words, insiders sold more than 26 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 35.11.
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): $15
Chairman of the Board Howard S. Jonas acquired 1,000,000 shares of this telecommunications company, paying $14.93 per share for a total amount of $14.93 million. Mr. Jonas increased his stake by 104.30% to 1,958,752 shares with this purchase. This was a Class B Treasury stock purchase and not an open market purchase.