Welcome to edition 402 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $152.83 million of stock compared to $43.35 million in the week prior. Selling also increased with insiders selling $2.14 billion of stock last week compared to $1.88 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 14.02. In other words, insiders sold about 14 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 43.44.
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. DDR Corp. (DDR): $7.92
Director Alexander Otto acquired 1,351,558 shares of this shopping center REIT, paying $7.81 per share for a total amount of $10.56 million. Mr. Otto increased his stake by 2.79% to 49,721,192 shares with this purchase.
DDR also topped our list last week after a $9.44 million purchase by Mr. Otto. With the recent decline in REITs, we are seeing broad-based buying of REITs by insiders. Three other REITs with insider buying last week that did not make our top 5 list include the retail REITs Store Capital (STOR) and Kimco Realty (KIM) and the hotel REIT Chatham Lodging Trust (CLDT).
With rising interest rates I expect continued weakness in REITs with a long bottoming out process but some of them are starting to look interesting enough to warrant a deeper look.
You can view the list of recent insider transactions for DDR Corp. here.
P/E: N/A | Forward P/E: 60.92 | Industry P/E: 31.38 |
P/S: 3.19 | Price/Book: 1.0968 | EV/EBITDA: 10.94 |
Market Cap: $2.91B | Avg. Daily Volume: 5,147,855 | 52 Week Range: $6.77 – $14.38 |
2. American Assets Trust, Inc. (AAT): $31.76
Chairman, CEO & President Ernest S. Rady acquired 197,015 shares of this diversified REIT, paying $31.99 per share for a total amount of $6.3 million. These shares were purchased indirectly through a trust.
You can view the list of recent insider transactions for American Assets Trust, Inc. here.
P/E: 51.06 | Forward P/E: 52.07 | Industry P/E: 31.38 |
P/S: 6.59 | Price/Book: 1.79 | EV/EBITDA: 15.75 |
Market Cap: $2.05B | Avg. Daily Volume: 236,923 | 52 Week Range: $30.62 – $44.83 |
3. La Jolla Pharmaceutical Company (LJPC): $30.69
Shares of this biopharmaceutical company were acquired by 2 insiders:
You can view the list of recent insider transactions for La Jolla Pharmaceutical Company here.
P/E: N/A | Forward P/E: -11.71 | Industry P/E: 203.44 |
P/S: N/A | Price/Book: 8.34 | EV/EBITDA: -5.19 |
Market Cap: $680.34M | Avg. Daily Volume: 615,220 | 52 Week Range: $22.68 – $41.36 |
4. Parsley Energy, Inc. (PE): $25.55
Shares of this independent oil and natural gas company were acquired by 5 insiders:
You can view the list of recent insider transactions for Parsley Energy, Inc. here.
P/E: 218.38 | Forward P/E: 12.97 | Industry P/E: 8.85 |
P/S: 8.31 | Price/Book: 1.37 | EV/EBITDA: 13.81 |
Market Cap: $8.03B | Avg. Daily Volume: 5,649,071 | 52 Week Range: $21.121 – $33.07 |
5. Continental Resources, Inc. (CLR): $49.5
CEO & Chairman Harold Hamm acquired 99,028 shares of this oil & gas company, paying $50.26 per share for a total amount of $4.98 million. Mr. Hamm increased his stake by 7.84% to 1,361,978 shares with this purchase.
You can view the list of recent insider transactions for Continental Resources, Inc. here.
P/E: 23.46 | Forward P/E: 19.49 | Industry P/E: 8.85 |
P/S: 6.51 | Price/Book: 3.58 | EV/EBITDA: 10.58 |
Market Cap: $18.37B | Avg. Daily Volume: 2,373,588 | 52 Week Range: $29.08 – $58.89 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Facebook, Inc. (FB): $176.62
Shares of Facebook were sold by 3 insiders:
You can view the list of recent insider transactions for Facebook, Inc. here.
P/E: 32.77 | Forward P/E: 19.98 | Industry P/E: 36.33 |
P/S: 12.621 | Price/Book: 6.90 | EV/EBITDA: 21.332 |
Market Cap: $513.08B | Avg. Daily Volume: 22,197,708 | 52 Week Range: $136.51 – $195.32 |
2. Intuit Inc. (INTU): $168.84
Shares of this accounting and tax software company were sold by 2 insiders:
You can view the list of recent insider transactions for Intuit Inc. here.
P/E: 44.7 | Forward P/E: 26.67 | Industry P/E: 34.24 |
P/S: 7.96 | Price/Book: 35.89 | EV/EBITDA: 25.94 |
Market Cap: $43.24B | Avg. Daily Volume: 1,361,236 | 52 Week Range: $114.8 – $177.51 |
3. Twitter, Inc. (TWTR): $33
Shares of Twitter were sold by 2 insiders:
You can view the list of recent insider transactions for Twitter, Inc. here.
P/E: N/A | Forward P/E: 48.53 | Industry P/E: 36.33 |
P/S: 10.05 | Price/Book: 4.85 | EV/EBITDA: 62.01 |
Market Cap: $24.56B | Avg. Daily Volume: 27,977,965 | 52 Week Range: $14.12 – $35 |
4. BeiGene, Ltd. (BGNE): $150.72
Shares of this clinical-stage biopharmaceutical company were sold by 2 insiders:
You can view the list of recent insider transactions for BeiGene, Ltd. here.
P/E: N/A | Forward P/E: -21.11 | Industry P/E: 203.44 |
P/S: 33.64 | Price/Book: 10.23 | EV/EBITDA: -62.53 |
Market Cap: $8.02B | Avg. Daily Volume: 339,696 | 52 Week Range: $34.36 – $164.15 |
5. Moelis & Company (MC): $51.15
Shares of this global investment bank were sold by 8 insiders:
You can view the list of recent insider transactions for Moelis & Company here.
P/E: 57.86 | Forward P/E: 17.64 | Industry P/E: 19.12 |
P/S: 4.18 | Price/Book: 5.06 | EV/EBITDA: N/A |
Market Cap: $2.86B | Avg. Daily Volume: 307,791 | 52 Week Range: $34.6 – $54.357 |
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long position in 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.
Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria