Welcome to edition 395 of Insider Weekends. Insider buying increased last week with insiders purchasing $18.16 million of stock compared to $7.58 million in the week prior. Insider buying continues to remain muted ahead of the fourth quarter earnings season. Selling decreased with insiders selling $532.15 million of stock last week compared to $647.6 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 dropped to 29.3. In other words, insiders sold more than 29 times as much stock as they purchased. The Sell/Buy ratio this week compares favourably with the prior week, when the ratio stood at 85.44.
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. Biglari Holdings Inc. (BH): $424.04
Director Sardar Biglari, acquired 5,366 shares of this holding company, paying $417.93 per share for a total amount of $2.24 million. These shares were purchased indirectly by The Lion Fund.
You can view the list of recent insider transactions for Biglari Holdings Inc. here.
|P/E: 10.09||Forward P/E: -91.78||Industry P/E: 55.9|
|P/S: 1.05||Price/Book: 1.71||EV/EBITDA: 33.46|
|Market Cap: $876.75M||Avg. Daily Volume: 6,750||52 Week Range: $290.05 – $483.79|
2. Citius Pharmaceuticals, Inc. (CTXR): $4.1
Executive Chairman Leonard L. Mazur acquired 213,106 shares of this pharmaceutical company, paying $4.69 per share for a total amount of $999,467. Mr. Mazur increased his stake by 6.38% to 3,550,836 shares with this purchase.
You can view the list of recent insider transactions for Citius Pharmaceuticals, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 32.98|
|P/S: N/A||Price/Book: 1.56||EV/EBITDA: -3.16|
|Market Cap: $39.79M||Avg. Daily Volume: 117,980||52 Week Range: $2.56 – $7.95|
3. NexPoint Residential Trust, Inc. (NXRT): $26.86
President James D. Dondero acquired 36,300 shares of this apartment REIT, paying $27.48 per share for a total amount of $997,356. These shares were acquired indirectly by Highland Capital Management, L.P.
You can view the list of recent insider transactions for NexPoint Residential Trust, Inc. here.
|P/E: 9.9||Forward P/E: -223.83||Industry P/E: 108.64|
|P/S: 4||Price/Book: 2.32||EV/EBITDA: 21.07|
|Market Cap: $567.62M||Avg. Daily Volume: 101,317||52 Week Range: $22.28 – $29.4|
4. Dave & Buster’s Entertainment, Inc. (PLAY): $47.92
Shares of this company were acquired by 2 insiders:
- Director Kevin M. Sheehan acquired 10,000 shares, paying $45.58 per share for a total amount of $455,772. Mr. Sheehan increased his stake by 18.14% to 65,138 shares with this purchase.
- Director Michael J. Griffith acquired 5,000 shares, paying $44.27 per share for a total amount of $221,350. Mr. Griffith increased his stake by 92.99% to 10,377 shares with this purchase.
Mr. Sheehan has served on the board of Dave & Buster’s since 2011 and is currently the CEO of Scientific Games (SGMS). He was previously the CFO and then the CEO of Norwegian Cruise Lines Holdings (NCLH), a company I wrote about in 2016 following insider purchases at Norwegian.
Mr. Griffith has also served on the board of Dave & Buster’s since 2011 and was previously the Vice Chairman of Activision Blizzard (ATVI).
These purchases followed a sharp 22% decline in Dave & Buster’s last week when the company released weak guidance for fiscal 2017. A 22% drop in the stock for a projected 1% drop in same store sales seemed excessive and the stock briefly traded for less than 8 times EBITDA before rebounding in the second half of the week. I have had PLAY in my watchlist for some time now and decided to start a position in the company after this decline and the show of confidence by insiders who have been on the board for over 6 years.
You can view the list of recent insider transactions for Dave & Buster’s Entertainment, Inc. here.
|P/E: 18.3||Forward P/E: 16.76||Industry P/E: 55.9|
|P/S: 1.76||Price/Book: 4.61||EV/EBITDA: 8.39|
|Market Cap: $1.95B||Avg. Daily Volume: 1,454,379||52 Week Range: $43.77 – $73.48|
5. Salesforce.com, inc. (CRM): $110.24
Director Susan Wojcicki acquired 6,000 shares of this cloud software company, paying $109.14 per share for a total amount of $654,820. Mr. Wojcicki increased his stake by 18.06% to 39,223 shares with this purchase.
You can view the list of recent insider transactions for Salesforce.com, inc. here.
|P/E: 9||Forward P/E: 63.72||Industry P/E: 80.2|
|P/S: 8.02||Price/Book: 9.02||EV/EBITDA: 142|
|Market Cap: $79.63B||Avg. Daily Volume: 4,397,530||52 Week Range: $74.37 – $110.71|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1.ServiceNow, Inc. (NOW): $138.19
Director Frederic B. Luddy sold 100,000 shares of this software-as-a-service provider for $135.37, generating $13.54 million from the sale. These shares were sold indirectly through a trust.
You can view the list of recent insider transactions for here.
|P/E: N/A||Forward P/E: 76.77||Industry P/E: 33.04|
|P/S: 13.47||Price/Book: 43.28||EV/EBITDA: -1.88|
|Market Cap: $||Avg. Daily Volume:||52 Week Range: $81.29 – $139.06|
2. Regency Centers Corporation (REG): $64.06
Vice Chairman Chaim Katzman sold 204,602 shares of this retail REIT for $64.90, generating $13.28 million from the sale. These shares were sold indirectly by Gazit First Generation, LLC.
You can view the list of recent insider transactions for Regency Centers Corporation here.
|P/E: 70.24||Forward P/E: 43.58||Industry P/E: 27.26|
|P/S: 12.16||Price/Book: 1.65||EV/EBITDA: 25.4|
|Market Cap: $10.92B||Avg. Daily Volume: 864,262||52 Week Range: $58.63 – $72.05|
3. Twitter, Inc. (TWTR): $25.41
Director Evan Clark Williams sold 546,300 shares of Twitter for $24.17, generating $13.2 million from the sale. These shares were sold indirectly through various trusts.
You can view the list of recent insider transactions for Twitter, Inc. here.
|P/E: N/A||Forward P/E: 56.47||Industry P/E: 36.63|
|P/S: 7.74||Price/Book: 3.89||EV/EBITDA: 72.08|
|Market Cap: $18.79B||Avg. Daily Volume: 19,591,314||52 Week Range: $14.12 – $25.85|
4. Zayo Group Holdings, Inc. (ZAYO): $36.46
Shares of this bandwidth infrastructure solutions provider were sold by 4 insiders:
- CEO Daniel Caruso sold 316,760 shares for $36.10, generating $11.43 million from the sale. These shares were sold indirectly by Bear Equity, LLC.
- President & COO Andrew Crouch sold 19,537 shares for $36.14, generating $706,067 from the sale.
- Chief Technology Officer John F. Waters sold 10,711 shares for $36.14, generating $387,096 from the sale.
- CFO Matt Steinfort sold 1,891 shares for $36.36, generating $68,749 from the sale.
You can view the list of recent insider transactions for Zayo Group Holdings, Inc. here.
|P/E: 95.95||Forward P/E: 60.77||Industry P/E: 18.12|
|P/S: 3.86||Price/Book: 6.1||EV/EBITDA: 13.55|
|Market Cap: $9.02B||Avg. Daily Volume: 1,974,270||52 Week Range: $29.73 – $37.26|
5. Andeavor (ANDV): $119.13
Shares of this oil refining company were sold by 2 insiders:
- Director Paul L. Foster sold 54,690 shares for $116.23, generating $6.36 million from the sale. 43,752 of these shares were sold indirectly by Franklin Mountain Investments Limited Partnership.
- Director Jeff A. Stevens sold 32,500 shares for $117.07, generating $3.8 million from the sale.
You can view the list of recent insider transactions for Andeavor here.
|P/E: 21.59||Forward P/E: 12.85||Industry P/E: 27.65|
|P/S: 0.62||Price/Book: 2.05||EV/EBITDA: 10.53|
|Market Cap: $18.74B||Avg. Daily Volume: 1,299,396||52 Week Range: $75.11 – $119.33|
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold long positions in Dave & Buster’s (PLAY) and Twitter (TWTR). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.