Insider Weekends – Nine Insiders of Global Eagle Entertainment Acquire Stock

Welcome to edition 414 of Insider Weekends. Insider buying declined significantly last week with insiders purchasing $40.06 million of stock compared to $205.39 million in the week prior. Selling also decreased with insiders selling $1.48 billion of stock last week compared to $2.02 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 went up to 36.95. In other words, insiders sold almost 37 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 9.82.

Insider Sell Buy Ratio May 25, 2018

Insider Sell Buy Ratio May 25, 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. QTS Realty Trust, Inc. (QTS): $37.73

Shares of this data center REIT were acquired by 5 insiders:

  • Chief Executive Officer Chad L. Williams acquired 112,757 shares, paying $35.23 per share for a total amount of $3.97 million. Mr. Williams increased his stake by 57.60% to 308,528 shares with this purchase.
  • Director Philip P. Trahanas acquired 60,000 shares, paying $34.72 per share for a total amount of $2.08 million. Mr. Trahanas increased his stake by 507.44% to 71,824 shares with this purchase.
  • Chief Financial Officer Jeffrey H. Berson acquired 15,000 shares, paying $34.89 per share for a total amount of $523,350. Mr. Berson increased his stake by 18.88% to 94,462 shares with this purchase.
  • Director Peter Marino acquired 10,000 shares, paying $34.51 per share for a total amount of $345,100. Mr. Marino increased his stake by 101.65% to 19,838 shares with this purchase.
  • Chief People Officer Steven C. Bloom acquired 1,000 shares, paying $35.08 per share for a total amount of $35,080. Mr. Bloom increased his stake by 4.58% to 22,826 shares with this purchase.

You can view the list of recent insider transactions for QTS Realty Trust, Inc. here.

P/E: 3144.17 Forward P/E: 96.74 Industry P/E: 53.95
P/S: 4.89 Price/Book: 2.18 EV/EBITDA: 17.55
Market Cap: $2.18B Avg. Daily Volume: 682,333 52 Week Range: $31.58 – $61.55

2. Global Eagle Entertainment Inc. (ENT): $1.99

Shares of this digital media company were acquired by 9 insiders:

  • Director Eric Sondag acquired 1,768,066 shares, paying $1.62 per share for a total amount of $2.86 million. These shares were purchased indirectly through a fund.
  • Director Harry Sloan acquired 500,000 shares, paying $1.49 per share for a total amount of $743,725. Mr. Sloan increased his stake by 337.77% to 648,029 shares with this purchase.
  • Director Edward Shapiro acquired 100,000 shares, paying $1.36 per share for a total amount of $135,810. Mr. Shapiro increased his stake by 208.20% to 148,030 shares with this purchase.
  • Executive Chairman Jeffrey A. Leddy acquired 88,000 shares, paying $1.15 per share for a total amount of $100,927. Mr. Leddy increased his stake by 41.65% to 299,284 shares with this purchase.
  • Chief Executive Officer Joshua Marks acquired 75,000 shares, paying $1.12 per share for a total amount of $83,646. Mr. Marks increased his stake by 32.11% to 308,548 shares with this purchase.
  • EVP, Chief Commercial Officer Per Noren acquired 35,713 shares, paying $1.46 per share for a total amount of $52,117. Mr. Noren increased his stake by 24.86% to 179,360 shares with this purchase.
  • Director Ronald Steger acquired 25,000 shares, paying $1.02 per share for a total amount of $25,610. Mr. Steger increased his stake by 72.72% to 59,379 shares with this purchase.
  • EVP, Chief Strategy Officer Wale Adepoju acquired 18,500 shares, paying $1.37 per share for a total amount of $25,325. Mr. Adepoju increased his stake by 8.56% to 234,667 shares with this purchase.
  • Director Robert W. Reding acquired 3 shares, paying $1.00 per share for a total amount of $3. Mr. Reding increased his stake by 0.01% to 48,033 shares with this purchase.

The wide divergence in the price at which these insiders acquired the stock was a little surprising. The stock has nearly doubled since it reported first quarter earnings in mid-May and was buoyed further by this string of insider purchases as discussed in this Bloomberg article.

You can view the list of recent insider transactions for Global Eagle Entertainment Inc. here.

P/E: N/A Forward P/E: -2.19 Industry P/E: 13.64
P/S: 0.29 Price/Book: N/A EV/EBITDA: -80.75
Market Cap: $181.2M Avg. Daily Volume: 779,791 52 Week Range: $0.87 – $3.84

3. Sohu.com Inc. (SOHU): $37.37

CEO Charles Zhang acquired 80,000 shares of this Chinese online media company, paying $36.62 per share for a total amount of $2.93 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: -12.42 Industry P/E: 34.07
P/S: 0.75 Price/Book: 2.19 EV/EBITDA: -3.45
Market Cap: $1.45B Avg. Daily Volume: 492,223 52 Week Range: $26.7 – $70.86

4. OPKO Health, Inc. (OPK): $3.7

CEO & Chairman Phillip Frost M.D. acquired 240,000 shares of this medical devices and drug development company, paying $3.89 per share for a total amount of $934,485. These shares were purchased indirectly by Frost Nevada Investments Trust.

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

P/E: N/A Forward P/E: -19.47 Industry P/E: 30.95
P/S: 1.94 Price/Book: 1.09 EV/EBITDA: -10.81
Market Cap: $2.07B Avg. Daily Volume: 5,293,088 52 Week Range: $2.66 – $7.25

5. MACOM Technology Solutions Holdings, Inc. (MTSI): $22.53

Chairman John L. Ocampo acquired 30,700 shares of this semiconductor company, paying $22.00 per share for a total amount of $675,393. These shares were purchased indirectly through various trusts.

You can view the list of recent insider transactions for MACOM Technology Solutions Holdings, Inc. here.

P/E: N/A Forward P/E: 21.06 Industry P/E: 18.85
P/S: 2.27 Price/Book: 1.92 EV/EBITDA: 19.47
Market Cap: $1.46B Avg. Daily Volume: 1,137,785 52 Week Range: $15.46 – $65.99

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

Notable Insider Sales:

1. Facebook, Inc. (FB): $184.92

Shares of Facebook were sold by 5 insiders:

  • COB and CEO Mark Zuckerberg sold 1,134,000 shares for $183.94, generating $208.59 million from the sale. These shares were sold indirectly through various entities.
  • VP Bus. & Marketing Partnerships David B. Fischer sold 18,096 shares for $185.88, generating $3.36 million from the sale.
  • Chief Product Officer Christopher K. Cox sold 10,600 shares for $184.83, generating $1.96 million from the sale.
  • Chief Financial Officer David M. Wehner sold 4,761 shares for $184.90, generating $880,309 from the sale.
  • VP and General Counsel Colin Stretch sold 750 shares for $182.50, generating $136,875 from the sale.

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

P/E: 30.61 Forward P/E: 20.23 Industry P/E: 34.28
P/S: 12.00 Price/Book: 6.91 EV/EBITDA: 19.41
Market Cap: $535.27B Avg. Daily Volume: 33,651,941 52 Week Range: $144.56 – $195.32

2. CarGurus, Inc. (CARG): $31.66

Shares of this online auto shopping company were sold by 5 insiders:

  • Director Anastasios Parafestas sold 905,423 shares for $31.55, generating $28.57 million from the sale. These shares were sold indirectly by various trusts and entities.
  • CEO, President and Chairman Langley Steinert sold 247,862 shares for $31.82, generating $7.89 million from the sale. 24,787 of these shares were sold indirectly through a trust.
  • Director Ian G. Smith sold 14,600 shares for $31.56, generating $460,841 from the sale.
  • Sr. VP, Engineering Oliver Ian Chrzan sold 6,000 shares for $32.03, generating $192,180 from the sale.
  • Sr. VP, GC and Secretary Kathleen Bender Patton sold 589 shares for $30.95, generating $18,230 from the sale.

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

P/E: 263.83 Forward P/E: 121.77 Industry P/E: 34.07
P/S: 10.78 Price/Book: 26.45 EV/EBITDA: 173.88
Market Cap: $3.42B Avg. Daily Volume: 528,240 52 Week Range: $25.85 – $40.6

3. Intuit Inc. (INTU): $197.09

Shares of this software application company were sold by 3 insiders:

  • Chairman of Exec. Committee Scott D. Cook sold 100,000 shares for $196.92, generating $19.69 million from the sale. These shares were sold indirectly by various trusts.
  • VP, Chief Accounting Officer Mark J. Flournoy sold 5,513 shares for $197.16, generating $1.09 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • EVP, Chief Technology Officer Henry Tayloe Stansbury sold 3,941 shares for $195.50, generating $770,466 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 Intuit Inc. here.

P/E: 54.01 Forward P/E: 30.32 Industry P/E: 32.59
P/S: 9.31 Price/Book: 43.62 EV/EBITDA: 30.04
Market Cap: $50.57B Avg. Daily Volume: 1,449,492 52 Week Range: $130.26 – $199.48

4. Electronic Arts Inc. (EA): $131.85

Shares of this video games company were sold by 7 insiders:

  • Chief Design Officer Patrick Soderlund sold 66,427 shares for $130.80, generating $8.69 million from the sale.
  • EVP of Strategic Growth Matthew Bilbey sold 16,156 shares for $131.12, generating $2.12 million from the sale.
  • Chief Executive Officer Andrew Wilson sold 10,309 shares for $132.17, generating $1.36 million from the sale. These shares were sold indirectly by various trusts.
  • Chief Technology Officer Kenneth A. Moss sold 10,000 shares for $132.59, generating $1.33 million from the sale.
  • Chief Accounting Officer Kenneth A. Barker sold 4,050 shares for $132.27, generating $535,682 from the sale.
  • General Counsel & Corp Secretary Jacob J. Schatz sold 1,000 shares for $132.71, generating $132,710 from the sale.
  • Director Denise Warren sold 1,000 shares for $132.71, generating $132,710 from the sale.

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

P/E: 41.13 Forward P/E: 23.17 Industry P/E: 35.37
P/S: 7.94 Price/Book: 9.91 EV/EBITDA: 21.79
Market Cap: $40.46B Avg. Daily Volume: 2,972,788 52 Week Range: $99.63 – $134.61

5. Garmin Ltd. (GRMN): $60.56

Shares of this GPS manufacturer were sold by 2 insiders:

  • Executive Chairman Min H. Kao sold 225,451 shares for $59.77, generating $13.47 million from the sale.
  • VP, Worldwide Sales Danny J. Bartel sold 1,548 shares for $59.69, generating $92,397 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: 16.46 Forward P/E: 18.52 Industry P/E: 25.73
P/S: 3.62 Price/Book: 2.99 EV/EBITDA: 12.93
Market Cap: $11.42B Avg. Daily Volume: 905,217 52 Week Range: $49.8 – $65.96

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.

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

Leave A Comment

You must be logged in to post a comment.