Menu
Welcome to edition 381 of Insider Weekends. Insider buying decreased last week with insiders purchasing $26.99 million of stock compared to $47.6 million in the week prior. Since we are in the quiet period before earnings season begins, insider activity is muted and is likely to remain so for the next two or three weeks. Selling increased with insiders selling $952.23 million of stock last week compared to $772.2 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 went up to 35.28. In other words, insiders sold more than 35 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 16.22.
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. L Brands, Inc. (LB): $42.92
Director David T. Kollat acquired 26,500 shares of this apparel chain, paying $37.56 per share for a total amount of $995,340. Mr. Kollat increased his stake by 21.64% to 148,968 shares with this purchase.