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Welcome to edition 406 of Insider Weekends. Insider buying declined last week with insiders purchasing $55.14 million of stock compared to $75.46 million in the week prior. Selling declined significantly with insiders selling $493.99 million of stock last week compared to $3.24 billion in the week prior. With the start of a new calendar quarter we are likely to see both buying and selling remain muted for the next few weeks as companies enter their quiet period before earnings.
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 down to 8.96. In other words, insiders sold almost 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 42.98.
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): $7.33
Director Alexander Otto acquired 2,033,703 shares of this shopping center REIT, paying $7.02 per share for a total amount of $14.27 million. Mr. Otto increased his stake by 4.09% to 51,754,895 shares with this purchase.