Welcome to edition 377 of Insider Weekends. Insider buying increased last week with insiders purchasing $71.05 million of stock compared to $43.33 million in the week prior. Selling on the other hand declined with insiders selling $930.04 million of stock last week compared to $1.31 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 13.09. In other words, insiders sold more than 13 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 30.31.
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. Builders FirstSource, Inc. (BLDR): $16.63
Director Paul S. Levy acquired 800,000 shares of this building materials company, paying $16.17 per share for a total amount of $12.94 million. Mr. Levy increased his stake by 411.24% to 994,533 shares with this purchase.