Insider Weekends – Chairman of Entercom Communications Purchases $8 Million Worth of Stock

Welcome to edition 404 of Insider Weekends. Insider buying declined last week with insiders purchasing $203.25 million of stock compared to $420.25 million in the week prior. Selling also increased with insiders selling $2.65 billion of stock last week compared to $3.05 billion in the week prior. Once again a large part of the insider buying last week was driven by 10% owner Bill Gates adding to his stake in Ecolab (ECL) to the tune of $117 million indirectly through his investment company Cascade Investments, LLC.

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 13.02. In other words, insiders sold more than 13 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 7.25.

Inside Sell Buy Ratio March 16, 2018

Insider Sell Buy Ratio March 16, 2018

Insider Sell Buy Ratio March 16, 2018

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. American Assets Trust, Inc. (AAT): $33.22

Chairman, CEO & President Ernest S. Rady acquired 259,583 shares of this diversified REIT, paying $32.95 per share for a total amount of $8.55 million. These shares were purchased indirectly through a trust.

We have been reporting on Mr. Rady’s purchases for some time now and his purchases extend all the way back to mid-2015. He stepped up the pace of purchases from February 2017 despite weakness in REITs over the last two years and specifically in the retail REIT sector. American Assets Trust is a diversified REIT with holdings in retail real estate, office properties and apartments. At a 3.28% yield, its yield is below the 4.29% yield of all equity REITs and well below the 6.18% yield of diversified REITs.

You can view the list of recent insider transactions for American Assets Trust, Inc. here.

P/E: 53.41 Forward P/E: 41.01 Industry P/E: 33.12
P/S: 6.89 Price/Book: 1.88 EV/EBITDA: 16.16
Market Cap: $2.14B Avg. Daily Volume: 289,229 52 Week Range: $30.62 – $44.83

2. Entercom Communications Corp. (ETM): $10

Chairman Emeritus Joseph M. Field acquired 800,000 shares of this radio broadcasting company, paying $9.95 per share for a total amount of $7.96 million. Mr. Field increased his stake by 20.66% to 4,671,897 shares with this purchase.

Mr. Field also purchased $4.39 million worth of stock in late November after Entercom Communications merged with CBS Radio.

You can view the list of recent insider transactions for Entercom Communications Corp. here.

P/E: 2.27998 Forward P/E: 7.04225 Industry P/E: 24.75
P/S: 2.36748 Price/Book: 1.06372 EV/EBITDA: 8.932
Market Cap: $1.4B Avg. Daily Volume: 2,417,967 52 Week Range: $9.4 – $14.53

3. New Mountain Finance Corporation (NMFC): $13.2

Shares of this business development company were acquired by 5 insiders:

  • Director Steven B. Klinsky acquired 482,276 shares, paying $13.38 per share for a total amount of $6.45 million. Mr. Klinsky increased his stake by 8.86% to 5,922,763 shares with this purchase.
  • CEO and Director Robert Hamwee acquired 20,000 shares, paying $13.20 per share for a total amount of $264,078. Mr. Hamwee increased his stake by 6.99% to 306,284 shares with this purchase.
  • Director Alfred F. Hurley acquired 5,000 shares, paying $13.04 per share for a total amount of $65,195. Mr. Hurley increased his stake by 16.53% to 35,240 shares with this purchase.
  • Section 16 Officer James Stone acquired 3,300 shares, paying $13.53 per share for a total amount of $44,644. Mr. Stone increased his stake by 3.75% to 91,390 shares with this purchase.
  • CFO and Treasurer Shiraz Kajee acquired 1,000 shares, paying $13.18 per share for a total amount of $13,175. Mr. Kajee increased his stake by 25.00% to 5,000 shares with this purchase.

You can view the list of recent insider transactions for New Mountain Finance Corporation here.

P/E: 7.09 Forward P/E: 9.49 Industry P/E: 12.23
P/S: N/A Price/Book: N/A EV/EBITDA: N/A
Market Cap: $1B Avg. Daily Volume: 411,154 52 Week Range: $12.05 – $15

4. REV Group, Inc. (REVG): $21.05

Chief Executive Officer Timothy W. Sullivan acquired 100,000 shares of this specialty vehicles company, paying $22.52 per share for a total amount of $2.25 million. Mr. Sullivan increased his stake by 92.06% to 208,620 shares with this purchase.

You can view the list of recent insider transactions for REV Group, Inc. here.

P/E: 25.8599 Forward P/E: 9.83645 Industry P/E: 16.25
P/S: 0.580994 Price/Book: 2.33733 EV/EBITDA: 11.737
Market Cap: $1.36B Avg. Daily Volume: 582,404 52 Week Range: $20.95 – $33.15

5. United Continental Holdings, Inc. (UAL): $70.88

Director Edward Shapiro acquired 25,000 shares of this airline, paying $70.65 per share for a total amount of $1.77 million. Mr. Shapiro increased his stake by 90.23% to 52,707 shares with this purchase.

You can view the list of recent insider transactions for United Continental Holdings, Inc. here.

P/E: 10.09 Forward P/E: 7.69 Industry P/E: 13.63
P/S: 0.53 Price/Book: 2.31 EV/EBITDA: 5.39
Market Cap: $20.18B Avg. Daily Volume: 4,738,719 52 Week Range: $56.51 – $83.04

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. Facebook, Inc. (FB): $185.09

Shares of Facebook were sold by 2 insiders:

  • COB and CEO Mark Zuckerberg sold 1,142,200 shares for $183.64, generating $209.75 million from the sale. These shares were sold indirectly through various entities.
  • Chief Technology Officer Michael Todd Schroepfer sold 38,024 shares for $182.53, generating $6.94 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for Facebook, Inc. here.

P/E: 34.34 Forward P/E: 20.94 Industry P/E: 46.98
P/S: 13.23 Price/Book: 7.23 EV/EBITDA: 21.35
Market Cap: $537.69B Avg. Daily Volume: 21,900,965 52 Week Range: $137.6 – $195.32

2. Intuit Inc. (INTU): $178.59

Chairman of Executive Committee Scott D. Cook sold 421,382 shares of this accounting and tax software company for $176.92, generating $74.55 milliom from the sale. These shares were sold indirectly through various trusts.

You can view the list of recent insider transactions for Intuit Inc. here.

P/E: 48.94 Forward P/E: 28.26 Industry P/E: 32.62
P/S: 8.42 Price/Book: 39.53 EV/EBITDA: 28.17
Market Cap: $45.74B Avg. Daily Volume: 1,367,868 52 Week Range: $114.8 – $179.3

3. Diplomat Pharmacy, Inc. (DPLO): $22.75

Director Philip R. Hagerman sold 2,150,000 shares of this independent specialty pharmacy for $20.65, generating $44.39 million from the sale. These shares were sold indirectly through various trusts.

You can view the list of recent insider transactions for Diplomat Pharmacy, Inc. here.

P/E: 99.7807 Forward P/E: 20.3125 Industry P/E: 28.42
P/S: 0.374517 Price/Book: 2.24116 EV/EBITDA: 32.176
Market Cap: $1.68B Avg. Daily Volume: 899,885 52 Week Range: $14 – $27.78

4. RealPage, Inc. (RP): $53.35

Shares of this application software company were sold by 4 insiders:

  • Chairman President & CEO Stephen T. Winn sold 521,137 shares for $52.88, generating $27.56 million from the sale. These shares were sold indirectly by various entities.
  • EVP, CFO & Treasurer W. Bryan Hill sold 8,000 shares for $52.89, generating $423,120 from the sale.
  • EVP, CLO and Secretary David G. Monk sold 8,000 shares for $53.60, generating $428,800 from the sale.
  • EVP Chief Product Officer William P. Chaney sold 5,000 shares for $53.05, generating $265,250 from the sale.

You can view the list of recent insider transactions for RealPage, Inc. here.

P/E: 10670 Forward P/E: 30.3125 Industry P/E: 32.62
P/S: 6.60699 Price/Book: 8.58269 EV/EBITDA: 51.592
Market Cap: $4.43B Avg. Daily Volume: 457,165 52 Week Range: $32.3 – $54.95

5. USANA Health Sciences, Inc. (USNA): $82.35

Shares of this nutritional and personal care products company were sold by 2 insiders:

  • Director Myron W. Wentz sold 268,000 shares for $81.04, generating $21.72 million from the sale. These shares were sold indirectly by Gull Global Limited.
  • Chief Leadership Devlop Office Paul A. Jones sold 10,696 shares for $81.00, generating $866,376 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for USANA Health Sciences, Inc. here.

P/E: 32.55 Forward P/E: 16.60 Industry P/E: 75.15
P/S: 1.89 Price/Book: 5.45 EV/EBITDA: 11.45
Market Cap: $1.98B Avg. Daily Volume: 94,909 52 Week Range: $52.55 – $83.05

You can view the full list of sales from this Insider Sales page.

The list of all insider purchases and sales by management people is only available to InsideArbitrage Premium and Plus members.

Disclaimer: I hold a long position in Entercom Communications (ETM). 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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria

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