Insider Weekends – Elon Musk Purchases Nearly $10 Million of Tesla Stock

Welcome to edition 412 of Insider Weekends. Insider buying more than doubled last week with insiders purchasing $160.97 million of stock compared to $78.25 million in the week prior. Selling increased slightly with insiders selling $1.56 billion of stock last week compared to $1.52 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 9.7. In other words, insiders sold almost 10 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 19.38.

Sector Heat Map May 4, 2018

Sector Heat Map May 4, 2018 (click to enlarge)

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): $7.49

Director Alexander Otto acquired 1,586,191 shares of this shopping center REIT, paying $7.39 per share for a total amount of $11.73 million. Mr. Otto increased his stake by 2.86% to 57,060,218 shares with this purchase.

We have been highlighting Mr. Otto’s insider purchases for several weeks.

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

P/E: N/A Forward P/E: 53.5 Industry P/E: 31.11
P/S: 3.07 Price/Book: 1.17 EV/EBITDA: 11.04
Market Cap: $2.75B Avg. Daily Volume: 4,557,604 52 Week Range: $6.63 – $10.87

2. Tesla, Inc. (TSLA): $301.06

CEO Elon Musk acquired 33,000 shares of this auto manufacturer, paying $298.50 per share for a total amount of $9.85 million. These shares were purchased indirectly through a trust.

The bright green square in the image of the sector heat map above was thanks to this purchase by Elon Musk. It was interesting to see this purchase shortly after he dismissed pertinent analyst questions in Tesla’s last earnings conference call as “boring, bonehead questions”. This is his first open market purchase of Tesla stock as all his prior purchases were related to participating in secondary offerings. It will be interesting to see how and when Tesla does another offering and if the stock will continue going up as it has done after all prior offerings.

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

P/E: N/A Forward P/E: 159.29 Industry P/E: 14.22
P/S: 4.09 Price/Book: 11.99 EV/EBITDA: -228.44
Market Cap: $51.12B Avg. Daily Volume: 7,629,591 52 Week Range: $244.59 – $389.61

3. Cullen/Frost Bankers, Inc. (CFR): $118.86

Director Graham M. Weston acquired 43,000 shares of this regional bank, paying $114.05 per share for a total amount of $4.9 million. These shares were purchased indirectly by Trout Capital, Ltd.

You can view the list of recent insider transactions for Cullen/Frost Bankers, Inc. here.

P/E: 21.58 Forward P/E: 16.37 Industry P/E: 18.21
P/S: 6.49 Price/Book: 2.39 EV/EBITDA: N/A
Market Cap: $7.58B Avg. Daily Volume: 442,864 52 Week Range: $81.09 – $119.66

4. Sohu.com Inc. (SOHU): $35.7

CEO Charles Zhang acquired 100,000 shares of this Chinese online media company, paying $35.33 per share for a total amount of $3.53 million. These shares were purchased indirectly by Photon Group Limited.

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

P/E: N/A Forward P/E: -10.92 Industry P/E: 34.07
P/S: 0.72 Price/Book: 1.85 EV/EBITDA: -3.66
Market Cap: $1.39B Avg. Daily Volume: 491,077 52 Week Range: $26.7 – $70.86

5. United Continental Holdings, Inc. (UAL): $66.92

Director Edward Shapiro acquired 50,000 shares of this airline, paying $65.86 per share for a total amount of $3.29 million. Mr. Shapiro increased his stake by 94.86% to 102,707 shares with this purchase.

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

P/E: 9.09 Forward P/E: 7.14 Industry P/E: 11.97
P/S: 0.49 Price/Book: 2.24 EV/EBITDA: 5.22
Market Cap: $18.55B Avg. Daily Volume: 3,703,150 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): $186.99

Shares of Facebook were sold by 2 insiders:

  • COB and CEO Mark Zuckerberg sold 1,113,530 shares for $177.69, generating $197.87 million from the sale. These shares were sold indirectly through various entities.
  • Chief Technology Officer Michael Todd Schroepfer sold 38,043 shares for $178.13, generating $6.78 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: 30.95 Forward P/E: 20.48 Industry P/E: 34.07
P/S: 13.31 Price/Book: 6.99 EV/EBITDA: 18.82
Market Cap: $541.27B Avg. Daily Volume: 35,000,406 52 Week Range: $144.42 – $195.32

2. Tableau Software, Inc. (DATA): $95

Shares of this software application company were sold by 6 insiders:

  • Co-Founder and Chairman Christian Chabot sold 400,000 shares for $91.09, generating $36.44 million from the sale.
  • Co-Founder & Technical Advisor Chris Stolte sold 285,000 shares for $91.15, generating $25.98 million from the sale.
  • EVP, Worldwide Field Sales Daniel John Miller sold 16,820 shares for $91.06, generating $1.53 million from the sale.
  • EVP, GC & Secretary Keenan Michael Conder sold 5,586 shares for $94.01, generating $525,113 from the sale.
  • Director Elliott Jurgensen Jr. sold 3,000 shares for $91.82, generating $275,470 from the sale.
  • Chief Marketing Officer Elissa Fink sold 2,500 shares for $93.28, generating $233,200 from the sale.

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

P/E: N/A Forward P/E: 243.59 Industry P/E: 34.82
P/S: 8.83 Price/Book: 10.14 EV/EBITDA: -39.42
Market Cap: $7.75B Avg. Daily Volume: 823,229 52 Week Range: $57.25 – $97.09

3. The Charles Schwab Corporation (SCHW): $59.46

Shares of this investment brokerage and asset management company were sold by 2 insiders:

  • Chairman Charles R. Schwab sold 1,000,000 shares for $57.20, generating $57.19 million from the sale. These shares were sold indirectly through a trust.
  • EVP and General Counsel David R. Garfield sold 37,330 shares for $57.01, generating $2.13 million 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 The Charles Schwab Corporation here.

P/E: 36.93 Forward P/E: 20.65 Industry P/E: 29.43
P/S: 8.98 Price/Book: 5.08 EV/EBITDA: N/A
Market Cap: $80.22B Avg. Daily Volume: 6,838,909 52 Week Range: $37.63 – $59.94

4. Garmin Ltd. (GRMN): $59.29

Shares of this GPS manufacturer were sold by 2 insiders:

  • Executive Chairman Min H. Kao sold 750,000 shares for $59.58, generating $44.69 million from the sale.
  • Director Donald Eller sold 3,924 shares for $59.36, generating $232,944 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 Garmin Ltd. here.

P/E: 16.1114 Forward P/E: 18.1871 Industry P/E: 27.01
P/S: 3.62082 Price/Book: 2.93428 EV/EBITDA: 13.416
Market Cap: $11.18B Avg. Daily Volume: 1,086,446 52 Week Range: $49.8 – $65.96

5. RealPage, Inc. (RP): $60.7

Chairman President & CEO Stephen T. Winn sold 465,280 shares of thisapplication software company for $60.53, generating $28.16 million from the sale. 279,167 of these shares were sold indirectly by Seren Capital and 972 shares were sold indirectly through a trust.

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

P/E: 12140 Forward P/E: 33.72 Industry P/E: 34.82
P/S: 7.64 Price/Book: 9.77 EV/EBITDA: 51.98
Market Cap: $5.12B Avg. Daily Volume: 473,104 52 Week Range: $32.3 – $61.95

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 members.

Disclaimer: 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.

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