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Welcome to edition 368 of Insider Weekends. Insider buying increased significantly last week with insiders buying $114.27 million of stock compared to $39.36 million in the week prior. Selling on the other hand declined with insiders selling $461 million of stock last week compared to $638.73 million in the week prior.
I have kept these posts short the last two weeks as I am spending some time with family on the East Coast and experiencing the beaches in weather that is hot enough to enjoy them. Given below is a picture of Long Branch beach in New Jersey.
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 4.03. In other words, insiders sold more than 4 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 16.23.
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. Energy Transfer Partners, L.P. (ETP): $20.2
Chief Executive Officer Kelcy L. Warren acquired 1,000,000 shares of this energy storage and transportation company, paying $20.33 per share for a total amount of $20.33 million. Mr. Warren increased his stake by 3,159.96% to 1,031,646 shares with this purchase.