Menu
Welcome to edition 384 of Insider Weekends. With earnings season in full swing we saw an uptick in insider activity on both the buy side and sell side last week. Insider buying increased last week with insiders purchasing $85.03 million of stock compared to $69.72 million in the week prior. Selling more than doubled with insiders selling $1.32 billion of stock last week compared to $490.79 million in the week prior.
There were several interesting purchases this week that did not make the list of top 5 purchases including purchases by a director and the CFO of the home improvement products company Tile Shop Holdings (TTS) and purchases by the CEO and the CFO of security & protection services provider The Brink’s Company (BCO).
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 15.5. In other words, insiders sold more than 15 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavourably with the prior week, when the ratio stood at 7.04.
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. Penske Automotive Group, Inc. (PAG): $47.79
Chairman & CEO Roger S. Penske acquired 1,103,996 shares of this auto dealer, paying $45.29 per share for a total amount of $49.99 million. These shares were purchased indirectly by Penske Automotive Holdings Corp.